Is it possible to earn above average returns in intraday? Answer is POSSIBLE , at least mathematically .
Suppose the trading capital is Rs 1,00,000.
Risk appetite per day is assumed at 3% on the trading capital, which is Rs 3000.....
Assuming you take 5 trades per day. Hence risk per trade is Rs 600. Reward per day is Rs 1200.
So, per month the total no. of trades will be around 100 assuming 20 working days per month.....
Hence, profit amount is 50 x 1200 = Rs 60,000 per month; similarly loss amount is 50 x 600 = Rs 30,000 per month.
Net pnl = Rs 30,000.
Retn per annum = 360%.
Hence, profit amount is 40 x 1200 = Rs 48,000 per month; similarly loss amount is 60 x 600 = Rs 36,000 per month.
Net pnl = Rs 12,000
Retn per annum = 144%
Hence, profit amt is 35 x 1200 = Rs 42,000 per month; similarly loss amt is 65 x 600 = Rs 39,000 per month.
Net pnl per month = Rs 3000
Retn on capital p.a=36%
The biggest challenge is definitely not related to a right trading system ; It is actually application of the above consistently with discipline.