Trading Challenge III : 300% in 5months. Attempt III.

[SwagatN]

No Trade Today.
I will be away for some personal work.

 

[gautam7821]

Because one loss trade in three months will wipe out all hopes

Loss is part of trading. SL will do the job of cutting huge loss. If one can mange it does not matter 30K or 30L. If SwagatN achieve 300% , the capital will be 1.2 L, as per my view it is manageable.

By the way did you ever loose hope after a loss trade ?

 

[gautam7821]

Date 05 Sep 2019

Only 1 trading opportunity was present today. Other stocks were moving in tight range. AXISBANK tried to breakout above previous day high. But the breakout candle was showing very less volume and price quickly turned about. Candle 4 was my trigger candle showing buyers are getting swapped, I SHORTEd below candle 4 low. But candle 5 was a kind of self reversal candle which made me tighten my SL to candle 5 high. My SL was taken but price eventually moved in my planned direction.

There was no re-entry opportunity available there.

Less than 0.2% SL. In my opinion it very less. A small noise will make your SL hit. If your mechanics is correct let's give your trade some air, to make sure that noise will not catch your SL.

 

[bbhanushali]

Date 05 Sep 2019

Only 1 trading opportunity was present today. Other stocks were moving in tight range. AXISBANK tried to breakout above previous day high. But the breakout candle was showing very less volume and price quickly turned about. Candle 4 was my trigger candle showing buyers are getting swapped, I SHORTEd below candle 4 low. But candle 5 was a kind of self reversal candle which made me tighten my SL to candle 5 high. My SL was taken but price eventually moved in my planned direction.

There was no re-entry opportunity available there.

@SwagatN : Based on the trades taken by you I have done a small exercise for you. The pics below shows 3 scenarios as follows:
1. These are the actual trades taken by you and the actual position size, which also tells you your expectation per unit and % of those expectations. Points to ponder is; are these realistic % expectations.

2. This working is based on your actual capital "what should be the ideal position size". Again, here based on your per day requirement to achieve your target capital the expectation per unit and % of those expectations exceeds way beyond its daily movements. Here also the % expectations is way beyond its normal range movements.

3. This working is based on suggested capital of Rs.80,000/- and what would be the position size according to this new capital. Again, keeping the target capital same the expectation per unit and % of those expectation just seems barely feasible. Since the % of the expectation are "just" within its normal range movements. Although, I would say even if you just target 1% instead of 1.5% movement (since one cannot capture the whole range movement) then it requires your strategy to be 100% as it will mean 1:1 Risk:Reward ratio.

I leave it to you to be judge of your own self and understand whether you are adequately capitalized. (I believe, if you were properly capitalized your last AXISBANK trade's S/L would be @ 659.70, which was resulting in 1% profit booking @ 646.60, based on your own method of entry). Hope this exercise helps you in your endevours. Please accept my apologies if this message is offending. Thnx.

 

[gautam7821]

What I do is , I use 50% of my capital in one order and keep 50% as back up.

no of share = (capital/2 x leverage )/LTP

For 30K capital with 20 times leverage .

15000 x 20 = 300000/448.70 = 668 no of share of Sunpharma .

 

[Happy_Singh]

What I do is , I use 50% of my capital in one order and keep 50% as back up.

no of share = (capital/2 x leverage )/LTP

For 30K capital with 20 times leverage .

15000 x 20 = 300000/448.70 = 668 no of share of Sunpharma .

Hi Gautam

Suppose you were to get 200 times leverage, what would be your position size?
would you still deploy 50% of the capital? will you then trade with the size of 6680 . . .

As your position size also depends on the leverage that is available to you
your classification 50% is a misnomer . . .

Your trade size is 10X of your deployed trading capital . . .
(Now this 10X, becomes independent of max leverage available)

.

 

[gautam7821]

Hi Gautam

Suppose you were to get 200 times leverage, what would be your position size?
would you still deploy 50% of the capital? will you then trade with the size of 6680 . . .

As your position size also depends on the leverage that is available to you
your classification 50% is a misnomer . . .

Your trade size is 10X of your deployed trading capital . . .
(Now this 10X, becomes independent of max leverage available)

.

Here capital is fixed @ 30k
Leverage is fixed @20X , no one will give 200X.

If leverage is 200X , I would reduce my capital to 3000. I won't risk to park the extra money at Trading A/c.
I said 50% , means 2 open trades at time. But I keep only 1 trade open generally.

 

[bbhanushali]

Here capital is fixed @ 30k
Leverage is fixed @20X , no one will give 200X.

If leverage is 200X , I would reduce my capital to 3000. I won't risk to park the extra money at Trading A/c.
I said 50% , means 2 open trades at time. But I keep only 1 trade open generally.

@gautam7821 : Leverage is double-edged sword. Now, take the supposition of 200X and 1% S/L of this trade becomes (3000*200*1%=6000), which means you will be putting your capital on guillotine twice. Ofcourse, you are the better judge for your capital. Thnx.

 

[PUCHU_2500]

capital 30k ..ok
what is leverage 15 times ?
u mean with 30k we can trade for 450k ? if so which instruments? which broker? ..

Sorry for late reply. only cash market, use BO/CO with discount broker, you will get minimum 15 times leverage.......above table is just assumption.....with good money management swagat sir can easily achieve his 300% return in 5 months and if his system is 50%+ success

 

[gautam7821]

@gautam7821 : Leverage is double-edged sword. Now, take the supposition of 200X and 1% S/L of this trade becomes (3000*200*1%=6000), which means you will be putting your capital on guillotine twice. Ofcourse, you are the better judge for your capital. Thnx.

@bbhanushali

Everyone (except some ) uses leverage with calculated risk as per their capacity. Even the thread owner also using leverage. No one can make 30K to 1.2L in 5 months without any leverage. If ones has good strategy, what's wrong to use leverage. But 200X is out of my imagination. I don't know from where 200X comes to your mind. I
use 10X leverage which my broker provide. This is my view and I am no forcing anything one to use leverage.

And why do you see only 1% SL, 4% profit will make my capital 24000 ie 8 folds.