Thread by @KulkarniKdar

I would like to show you a strategy by which you will be able to earn Rs 2 lac per week. How many are interested?

What is required:
a) minimum capital required to start is Rs 10 lacs
b) immense discipline
c) tons and tons of patience

Tuition fee: minimum 100 retweets🙂

Friends, just to clarify, this is not some weekend timepass... I am dead serious... I am trading this strategy personally and will share the backtest results also...

all I ask in return is min 100 RT for wider knowledge sharing...

Some more info... strategy requires "zero" screen-time during market hours (maybe just couple of mins to punch orders)... so perfectly suitable to even part-time traders (who have a full-time business/ office job)

Thanks a lot for your encouragement 🙏 29 more to go 🙂

Friends,
Thanks a lot! You have paid the tuition fee🙂Now, as promised, I will now share the strategy. Brace yourself for a very very long thread...
But before I do that, I would like to clarify few things at the very beginning. We all want to be rich, right?

Absolutely nothing wrong with that. Why else are we risking our hard-earned money and doing trading on stock markets? However, while being able to make money from stock market is a reasonable expectation, to expect that you will put in 10L of capital and start earning

2L per week “right from day1” is an unreasonable/ unrealistic expectation and this is what most of us on twitter are guilty of.
As the great Leonardo da Vinci said:

I mentioned in my tweet that you will be able to earn ~Rs 2L per week. However, I did not say that you will be able to earn that from next week. No. What I am going to share is not a “get-rich-quick” scheme. That is exactly why I also mentioned that you will need to bring in

tons and tons of patience and discipline to be able to go through this journey. So, here’s the strategy step-by-step:

Step 1:
Please ensure you have minimum of 10L of “free” capital in your trading account. What I mean by “free” is that, it should not be blocked by any other

strategy/ trade already going on. We need minimum 10L of capital separately set-aside for this strategy.

Step 2:
This strategy is based on Point & Figure charting pattern. Therefore, you will need subscription to @Definedge ’s TradePoint software (EOD version).

In this strategy, we will be using only “daily” time-frame. So we don’t need their RT (real-time) version which gives intra-day data. EOD (end of day) version is good enough. It is very reasonably priced at Rs 5,900 for six months (you can check of their website).

Step 3:
This strategy is a “trend-following” strategy involving stock FUT. Also, it is 100% mechanical. In fact, it is so mechanical, that even the decision of which stock to trade is decided by the software (if you wish to follow my methodology explained below).

You have NO role to play at all, except do exactly as what I am going to explain below. We will start with a single stock and with just 1 lot of that stock. You can choose any stock of your choice. However, if you want to know, how I would like to select the stock, then this is

how I do it, completely mechanically. See screenshots step-by-step (as an illustration). Those who are already using P&F charts daily will already know this, but this is for those who have never used P&F charts/ TradePoint software.

After you have activated the software on your computers, go to “Scanner”

Select “Point & Figure Scanner”

In scrip-group, select “F&O Stocks”

In scanner type, select “Double Top Buy Signal”

Keep the box size as default 0.25% and reversal box as default 3… rest of the selections should also be the default settings as shown below…

Now run scan…

Sort on “% from DBS” in ascending order (ie low to high)

We see that Amara Raja is the first on the list with a reading of 1.56% in the last column…

We now repeat the scan but this time, in scanner type we select “Double Bottom Sell”

We get a new scan list… we sort the list based on “% from DTB” in ascending order (low to high)

We see that Bank of Baroda is the first on the list with a reading of 1.41% …
So now we have two candidates… Amara Raja using DTB and Bank of Baroda using DBS. Considering that Bank of Baroda’s reading (1.41%) is lower than that of Amara Raja (1.56%), we select Bank of Baroda

as our choice of the first stock to start our strategy. Further, since Bank of Baroda was found through the “Double Bottom Sell” scanner type, it means, we will be starting on the short-side.
The reason I explained the above selection process to you is to show that, even the

stock selection is completely “objective” and “rule-based”. There is no discretion or individual choice involved.
In order to understand some of the basic terms used in Point & Figure charting, please go through this educational video: insight.definedge.com/course/index.p…

Step 4:
This is stop-and-reverse (SAR) strategy, which means that we will be always in the market, either on long side or short side. Entry for long is DTB (Double Top Buy) signal. Entry for short is DBS (Double Bottom Sell) signal. We will check the chart only once during

the whole day, which is after 6:30 pm. Why 6:30pm? Because the TradePoint EOD version is updated with the daily charts only post 6:30pm everyday. In the above example, if we start with Bank of Baroda on short-side, then everyday post 6:30pm we will check if the chart has

given a “long” signal (ie DTB). If no, we will not do anything (ie we will continue to be short). If yes, then next day at 9:15, we will go long in 2 lots so that we exit the 1 lot existing short and become long in new 1 lot. Same process we will repeat everyday post 6:30pm

to check if there is a change in the trend.
Please note that this strategy does not have a fixed target. We will remain in the trade till the time our SL doesn’t get triggered, at which time, we will go 1 lot in reverse direction.

Step 5:
Once we reach a profit milestone of Rs 2 lacs (ie our total capital increases from the original Rs 10 lacs to Rs 12 lacs), we will select one more stock (using the same process mentioned above) and add 1 lot of that selected stock to our trading list. Now we have

2 stocks in the strategy (please note, whether each stock is long or short is not important… you could have both long, both short or 1 long/ 1 short). We will keep adding one more stock at every 2L milestone. So we should be having 3 stocks on hitting 14L, 4 stocks on 16L,

5 stocks on 18L and so forth.
Please note that stock FUT are very volatile and much more volatile than index. Therefore, from a proper position sizing perspective, we have decided to start with minimum capital of Rs 10L so that we can withstand any draw-down.

I have myself started trading this strategy from June 1. Despite having a total capital of ~Rs 1.5 Cr, I too have started with just one stock. That is because, my trading capital is already in use in 4-5 other trading strategies (including the Option trades I publish on

telegram which many of you follow) and therefore I decided to start with just 1 stock.
Also, I don’t want to get rich in a day. I wanted to be patient and disciplined so that I can start with 1 stock and slowly compound my way to a stage where I end up earning 2L per week.

Here is my real-time trade performance so far...As you would see, I started with long from 901.15, went short at 896.92, again went long at 929.67. Exited June series at 914.70 and rolled-over the July series at 908.4 and still holding as of today.

Currently I have reached profit of Rs 49,194. Its been about 39 trading days (VERY IMP: These are “trading” days… not “calendar” days…so all weekends and market holidays are ignored).
Look at the table below.

This is rough maths I have done to estimate how much time I should take to reach my goal of 2L per week. In the above real-life example, I have already completed 39 trading days with my first stock. I like to be very conservative. So, let me assume, I will take 90 trading days

to reach my first 2L milestone. Now, think of it this way. If it takes you 90 trading days to earn the first 2L milestone (because you are only trading 1 stock), then to earn the next 2L (with 2 stocks now), it should certainly take less time (in the table above, I assumed

67.5 days). Similarly, for earning the next 2L I assumed even less time of 45 days and so forth. By the time you have 27 stocks (and therefore a total capital of about 62L, you should be able to make 2L in about 5 trading days (ie 1 week).

As per the above table, you should reach that goal in about 480 trading days, which means (considering about 20 trading days per month) about 24 months or 2 years. Let us be even more conservative. Let us round it off to 3 years. Its still great considering you just started

with 10L and tripled your capital in 3 years, and of course, also met your goal of 2L per week and what’s more, with almost “zero” screen-time. You can easily do your day job (business/ office job) and still manage this strategy very easily as all you need is spend few minutes

everyday post 6:30pm and a few minutes at market open next day (only if required).
Now, of course, its not necessary that this is exactly it will happen, but it gives you a fair idea of the broad time it should take you to reach the 2L per week target. Depending on when you

start this strategy and which stock comes in your selection criteria and how they behave, you may take longer/ or shorter time to reach your 2L milestones. Someone could be lucky (based on their stock selection) that they may achieve this milestone much before 3 years. Someone

else, may take a little more. Also, when I say 2L per week, I meant more as a run-rate. It is not that you HAVE TO earn 2L EVERY WEEK.

Now, as also promised in my tweet, here is the backtest result of this strategy. As you can see from the screenshot below, the backtesting has been done on the TradePoint software itself.

As you can see from the last row, on the long trades, it has a success (win-loss) ratio of 55.32% and a risk-reward of a phenomenal 4.82 giving an expectancy of 2.22. Similarly on short trades, it has a success (win-loss) ratio of 48.02% and a risk-reward of a phenomenal 3.37

giving an expectancy of 1.10.
Now, in the spirit of utmost transparency, one disadvantage of Point & Figure charts is that, they don’t show the overnight gaps. Therefore, in order to account for the overnight gaps (which are not considered in the above backtest), even if we were

to discount the above statistics by 1/3rd, it is still a phenomenally great result to have. Ask any trader, and he will give his arms/ legs to have a expectancy of 1.48 (2.22 – 1/3rd) on long side and 0.73 (1.10 – 1/3rd) on short side.

**Parting thoughts**
You may know that DTB and DBS are the most basic P&F patterns. In fact, they are the building blocks of all other advanced patterns in P&F. Therefore, some of you may wonder, is it really possible to earn this kind of a return using such simple entry/ exit

criteria. I say YES. Often times, simple things work the best. As Steve Jobs said, “Simplicity is the ultimate form of sophistication”.
Those who follow my telegram trades, would know that I have earned Rs 11.84 lacs in last 2 months...a return of almost 12% (on starting cap

of ~1Cr) in just 2 months...

On the other hand, if you think all of the above is a BIG NONSENSE and you feel that I have wasted your time, I sincerely apologize.

Either ways, thank you for taking the time to read this and for all your support and encouragement. Have a great weekend !!

***END***

Friends,
Overwhelmed by response to thread...thanks for encouragement/ appreciation. Got lot of queries on P&F charting, how it works, and on how to implement this system in real-life. Another mini-thread to address these follow-up queries, with help of live charts.

Let us say, you want to start this strategy. You are starting with 10L of initial capital. You performed a scan and let’s say you got Bajaj Finance as your first stock. See chart below. This is how a P&F chart looks like. The green horizontal lines are your “DTB (Double Top

Buy) triggers and the red horizontal lines are your “DBS (Double Bottom Sell) triggers. Let’s say you went long on 29-Jan-2020 at DTB shown by a black circle (price was 4228)…lot size is 250…so to earn your first 2L you need the price to move 800 points up which is

4228+800=5028.

Unfortunately, the price never reached that level and it retraced and gave a DBS shown by the black circle.

So you exited the longs on 04-Mar-2020 at 4367 and went short (based on stop-and-reverse). Profit booked on long trade = 4367-4228=139 points. Now you still need another 661 points to reach your 2L milestone, which means price has to now go down to 3706 (4367-661). That level

was reached on say 16-Mar-2020 at the spot shown in black arrow below. In other words, that’s the spot where your total capital has now become 12L (10L + 2L).

So basically to summarize, you went long at "green" arrow, you went short at "red" arrow and achieved your 2L milestone at the "black" arrow...

It is at this point, on 16-Mar-2020 that you should now run a new scan to search your second stock. Let’s say, your new selection is Zee Entertainment. Please note BajFin will continue in your list and you will keep going long/ short based on when you get DTB/DBS signals on

your chart. But now, in addition to BajFin you will also track ZEEL.
You will keep tracking these 2 stocks till you reach the next 2L milestone (ie till your capital reaches 14L). Let us say, that happens on 10-June-2020.

It is at this point, on 10-Jun-2020 that you should

now run a new scan to search your third stock. Let’s say, your new selection is Adani Ports. Please note BajFin and ZEEL will continue in your list and you will keep going long/ short based on when you get DTB/DBS signals on your chart. But now, in addition to those 2 stocks

you will also track AdaniPorts as the third stock and you will keep doing that till your capital reaches 16L and so the process continues.

This is how you start with a simple idea. Keep patience. Follow the rules with utmost discipline and then increase your position at every profit milestone and compound your equity curve.

*** END ***

Conversation with a follower ...posting here, in case, anyone else had the same questions

one more conversation....

One more....

Friends, just a small update to my above thread...if there is one thing I have learnt in my years of trading, it is that, it never harms to be more careful and conservative...so, I am making a small edit in the above strategy. Instead of 2L, I am going to make the milestone

as 3L...meaning, instead of adding a new stock on every 2L profit, I will add only on 3L profit...

Reason for doing this:
I am noticing that the margin required for 1 lot of stock FUT is ranging between 2-3L per lot. So, 2L may be inadequate to add a new stock.

By the way,

I am moving slowly, but steadily, towards my 2L (errr... 3L) milestone...🙂...my position updated as on today...

As the great Abraham Lincoln said 👇

Friends,
Hope you liked my earlier thread...
You would have seen one of my recent tweet👇 where I had talked about the various strategies that I follow...I have got a lot of DMs/ tweets asking about the "KINDEX" strategy...so, in response to lot of those

requests, I am planning to share the details of my "KINDEX" strategy... as usual, you have to pay a very big tuition fee... do I need to say what? 😆 Yes, min 100 RT required...😄

Just a teaser... since I keep talking about "non-correlated strategies", no prizes for guessing that this is completely different from my P&F strategy that I had shared earlier...

Lot of DMs asking when am I sharing my Kindex strategy...

Will share once I get my tuition fee... got 24 RT ... 76 more to go 🙂

Just continuing my earlier thread...

What's important is not whether you have a dream (everyone has one!)... but whether you are doing something to achieve that... I am tracking the progress of my strategy on daily basis...given that I have now changed my milestone from 2L to 3L

I have recalibrated the days accordingly... on the left is the strategy as described in my above thread (using 0.25% box size) and on the right is the same strategy (using 3% box size)...currently on 1 stock each for both 0.25% and 3%, but expected to reach 20 stocks in 661

"trading" days (not "calendar" days), meaning approx 30 months (2.5 years)...by which time, I would have scaled up such that I will be achieving the 3L milestone "every 10 trading days"

As they say:
"Compounding is the 8th wonder of the world, those who get it, earn it... and

those who don't, pay it"

I am willing to wait 2.5 years to earn 3L every 10 days... are you???

Conversation with a follower

30 done... 70 more to go 🙂

Below is an extract of the script of the iconic movie “Wall Street” (every trader’s Bible...I must have watched this like 50 times and still can’t get enough of it)...

Words of advice for every trader out there ( particularly new traders who wants to get rich quick)

Stick to the fundamentals:
a) prepare a sound trading plan; and
b) have the discipline to stick with it through good and bad phases

GOOD THINGS SOMETIMES TAKE TIME !!

Getting DMs/ mentions saying that people have started implementing this strategy (the "0.25% strategy" as it is being now popularly referred to🙂)...In fact, my sister has also started with Pidilite as her first stock...I wish all of them the very best 👍

Would just repeat my earlier advice... this is NOT a get-rich-quick scheme... this is like a 3-year college course, which, if you pass with flying colors with full discipline, patience and devotion, will give you a assured salary...🙂

37 done... 63 more to go 🙂

45 done... 55 more to go

53 done... 47 more to go

Like this particular follower (see link),

getting lot of requests for sharing my Kindex strategy. Hence, considering the auspicious occasion of Ganesh Chaturthy, sharing it now.

Had requested for 100 RT...got only 53...no probs, balance 47 waived off😁

So, basically, the strategy is very simple (as all my strategies are🙂...since I believe in what Steve Jobs said..."simplicity is the ultimate sophistication")

This strategy is a combination of 15 parameters, as follows...3, 5, 8, 13 and 20 EMA + 5, 10, 20 SMA + SuperTrend +

Ichimoku + RSI + Donchian Channel + Stochastic (5-day) + Stochastic (14-day) + ADX

Please count again... exactly 15 parameters.

Let me elaborate a bit more on some of the parameters...

Ichimoku - here I only consider the Tenkan-sen (9-period line) & Kijun-sen (26-period line)

Once T>K, I consider bullish and when T<K, I consider bearish

RSI - I use the default 14 period for calculating RSI. A reading above 50 means bullish and below 50 means bearish

ADX = When DMI(+) is greater than DMI(-), I consider bullish and vice-versa

Rest of the parameters are simple and don't need elaboration...

This is purely a EOD strategy. Meaning at the end of each day, I look at all these parameters. If at the end of day, any particular parameter is bullish, I assign +1 as a value to it. If it is bearish, I assign

-1 as a value.

So imagine if 10 out of 15 parameters are bullish, the total score will be +10 + (-5) = +5

If 8 out of 15 parameters are bullish, total score will be +8 + (-7) = +1 and like that...

Once you find the score, all you have to do is ensure that next day at open

you have exactly those many lots of #nifty FUT either long or short. For eg, if score is +10, then you should 10 lots long, if score is -7, then you should be 7 lots short.

Suppose, your current score was +5 (meaning you were 5 lots long) and at the end of day, the score turns

to -9, then that means, next day, you have to go short in 14 lots (to convert 5 longs into 9 short... understand?)

That's it...over!

I personally have plotted these 15 parameters on excel and have linked them with formulas, so that, just by updating the base data, I get

the score... my excel sheet looks like this 👇... green means bullish and orange means bearish...column B shows the score at the end of day...column S shows how much qty I need to be long or (short)

So, basically, at any time, you will have max 15 lots long/ 15 lots short...

I started trading this strategy from May 27...so its been 63 trading days so far. The result is as below...refer columns CE for Nifty and CF for Bank Nifty.

Questions/ criticism both welcome🙏

So, assuming max 15 lots of #nifty & 15 of #banknifty, your total capital blocked will be ~INR 40L. On that capital, it has given profit of 7.43L in 4 months, which is ~55% annual return.

I personally feel, this strategy is better suited to Nifty on which the ROI is much better!

But in the spirit of full disclosure, I am going to discontinue this strategy, and the reason is that, I am introducing a new strategy in my portfolio, which I feel will give me a even better ROI, and I need trading capital for that one. In fact, because of that, I will also

be discontinuing my option trades. As you know from my channel, my option trade qty is quite large and requires significant capital. I can't execute my option trades + kindex + other pivot trend following strategy +my new trading strategy...I simply don't have that much capital

So, I will be discontinuing my option trades + kindex + pivot trend following strategy and concentrating only on the following:

a) New strategy - column CM
b) Manu's telegram trades - column CI
c) My 0.25% P&F strategy - column CG
d) My 3% P&F strategy - column CH

In case you

are wondering what the new strategy is, patience!🙂 Will disclose that, but after a few months, once I have started executing it live and tested it for a few months. Or who knows, I may change my mind and disclose it earlier also.

Now, despite knowing the above, if you still

want to follow my telegram channel and the Kindex strategy, its your decision...but as a ethical person, it was my duty to let you know. As I said, telegram trades will continue as usual (without my actual qty) and re: Kindex, will be happy to answer any questions!

As Gavaskar said, it is always better to retire when people ask "WHY?" rather than "WHY NOT?"...

Similarly, it is always better to discontinue a strategy when it has given you good profit, rather than heavy loss...so, I don't feel bad giving up my option trade and Kindex

strategies as they have been excellent return over the past 4 months.

Looking forward to my new strategy which, hopefully, will be even better 🙂