Trading Challenge - 1 (Crude oil - 1.75 L to 1 Cr in 300 trading days)

[Aman1]

is this your only default auto setting trading renko chart on 15 min time frame? or you do scalping on some lower time frame like 5 min on renko.

 

[ScorpionKing]

is this your only default auto setting trading renko chart on 15 min time frame? or you do scalping on some lower time frame like 5 min on renko.

hi Aman1,

one line answer to your query - i use 1 min and a box of 4 or close to that for my scalping and this was a intra-day trade i was on.

my reasons for the same - as below:

on renko it is ideal to use the 1 min chart and change box setting according to your need - scalping/intra-day or positional (only if you cannot change box setting only then you use the time frame that gives you the closest box setting to your trade style)

on renko time in a sense is irelevant and yet it is relevant - so just change the box setting on a 1 min chart and you get around the problem of boxes not painting or disappearing. (to an extent)

yes, in case you trade candles or renko or range bars or heiken ashi or the line charts etc - it does not matter which - other than scalper, a trend swing/ trader then it is better to use a ratio of 1: 5 (can be amended a bit to say 4/6 approx) - (read Alexander Elder's book)
eg if you use a 15 min chart - your base/trade chart - then you should use the 1 hour reference chart to guide you on the trend

with scalping - the price is your guide - you go with it - time it, just time it - nothing else
with intra-day - the trend is your guide - you go with it, just follow it and nothing else

in scalping you do not look at any other time frame except the trade chart - to nail it you just time your trade as accurately as you can. you just look for the timing the entry and exit, that is all - scalping is only about timing the price bars on the chart in front of you.

renko bar box value settings (TF of chart is 1 min on all the below)
picked this up from a forex trader and it has been working well for me

scalping - 4 pips = 4 points = crude 4 points = 4 X 0.05 ie 20 paise for base metals
intra-day - 10 pips = 10 points = crude 10 points = 10 X 0.05 ie 50 paise for base metals
positional (short term) = 20 pips = crude 20 points = 20 X 0.05 ie 1.00 rs for base metals

another thing Aman1 - what i post is my personal view so do your own homework on these - cross check with real traders (lol, i am after all a newbie and not proven yet) - read books of the trading greats who made it - tune them to your trading style and temperament before trying them out on demo or paper and only then apply what you arrive at live with extreme caution. nothing is right until it is proven after all - more so, in the markets.

good luck for the week ahead

 

[ScorpionKing]

week 2:

target is 22000 for this week to reach a capital of 2..5 L. ie avg down to some 5000 rounded off daily.
let me see if that can be achieved.
intend to reduce scalping and get into short-term intra-day slowly. i may not be trading the morning session today as i will be out for a while now.

starting out positive and what follows will be what i deserve - should things go wrong, lol.

 

[ScorpionKing]

Buy intra day lead 2 lots @ 152.75 ..

Edit..Exit 153.0, trailing so triggered.. was trailing too tight..

Edit..Lead entry 153.4 was on 2 lot buy, sell 153.75

Edit.. shutting shop..Day target achieved.


Good trading to you guys

 

[mehtaka]

How much risk/drawdown u keeping?

 

[ScorpionKing]

How much risk/drawdown u keeping?

Scalps 4 points crude per trade
Non scalping as below -

50 percent of max drawdown per day allowed on a trade is what I follow now. The actual on trade depends on set up, lot size etc.

have a max drawdown of 2 percent capital trading stop for the day .

2 full losses and trading ceases for the day.

 

[goldenedge]

You follow your strategy and system posted above 100% correctly. If you do, it's theoretically possible to make a lot of money.

I'm not saying you will touch 1 crore but 20-30L? Easily, if you do everything right

Just be mentally prepared for those really bad days like 4 days continuous loss and act accordingly as you planned. If you do it right you will achieve your goal

 

[kingkrunal]

on renko time in a sense is irelevant and yet it is relevant - so just change the box setting on a 1 min chart and you get around the problem of boxes not painting or disappearing. (to an extent)

agreed 100%.. the renko charts if u keep it at 1 hour.. the bars will repaint as far as the hour is still on ... and it will be always perfect..

was looking into this at weekend and then today realized while live ..

what you recommend for the positional.. i am short of time and have to move to positional now..

 

[ScorpionKing]

You follow your strategy and system posted above 100% correctly. If you do, it's theoretically possible to make a lot of money.

I'm not saying you will touch 1 crore but 20-30L? Easily, if you do everything right

Just be mentally prepared for those really bad days like 4 days continuous loss and act accordingly as you planned. If you do it right you will achieve your goal

well said - yes, agree fully with that. it is the ability with the losses that will test me. how i crack or manage to hold on under pressure. there will be losing days and there will a string of losing days to come. one must accept that gracefully and step aside and take the softest blows during those times.
the target is just that - a fantasy. just something to keep me motivated, nothing else. the profits are a by product. as long as i can trade well - they will follow me, else - they will turn away. so not too focused on them. just use them as a guide like today to step out if achieved - kind of greed brakes, lol.

i am forcing myself to sit for an hour or so and not trade, lol. fingers are itching but now i know i can at least control the urge to jump in and scalp away. this is my weakness. earlier i could not spend an few minutes without taking a scalp. now - i treat each scalp as a precious arrow that i must shoot only when needed and the target is clear. i have a quiver of just 10 a day i tell myself. let us see - can see signs of discipline building up inside although it is way off ideal yet.

i wonder how different my reaction to a losing day will be now - but then, i will not have to wait too long - the next losing day is always just 24 hours away.

lol, too early to put a figure of even a target of 20 L as honestly achievable. but yes - at least it feels possible - no matter how remote i agree. but my first priority for this month is to lose small / fewer days and win slightly bigger / slightly more than the losing days. if i can win 15 days and lose no more than 5 days i think it will be a nice thing to happen. 10 days wins in a month will be wonderful and something i would be grateful for.

after all - the markets do not normally reward you big enough when you are right - just give you a light pat on the back. but mess up one trade and the market will tear you up. it is like a beast that shows little affection and massive aggregation

good luck and thank you for tweaking my confidence and trading

good trading to you

 

[ScorpionKing]

agreed 100%.. the renko charts if u keep it at 1 hour.. the bars will repaint as far as the hour is still on ... and it will be always perfect..

was looking into this at weekend and then today realized while live ..

what you recommend for the positional.. i am short of time and have to move to positional now..

i cannot really comment on the positional trades but you could go check out and finalize on renko or range bars or candles as a first step.

a) renko gives you the overall picture.

b) if you wish to get the intermediate view then range bars are great (show consolidation whereas renko skips that) - you can dig deeper into that too and see if you like them better. a range bar for eg will paint whatever has happened (no disappearance in range bars) - up or down in the chosen TF unlike a renko where price must move at least one bar length in previous direction or two bar length in opposite direction to remain painted at end of TF.
- another good thing is there are very few patterns - usually a pin bar with a wick on top or the bottom to warn you of reversal usually. worth exploring too. quite a few day traders prefer them to the renko bars.

c) there is a very disciplined positional trader and he trades crude oil by the name - 'imfine' who has this thread and does well. he uses conventional candles and just two ema's to trade the 1 hour TF - he would be better to inspire and advice you. nice friendly guy and i hope he does very well.
http://www.traderji.com/community/threads/my-crude-oil-positional-trades.106587

good trading to you