Good morning friends,
One should never have a single strategy or trading set-up. Its like putting all your eggs in 1 basket. What if that particular strategy goes into a big drawdown? Therefore, it is important you allocate your trading capital across several strategies (1/n)
One should never have a single strategy or trading set-up. Its like putting all your eggs in 1 basket. What if that particular strategy goes into a big drawdown? Therefore, it is important you allocate your trading capital across several strategies (1/n)
(ideally 2-3 or 3-4). Importantly, strategies need to be “non-correlated”. Meaning, they should have a completely different set-up or timeframe or charting pattern, so that, when one strategy is going through a bad time, the others make money and vice-versa (2/n)
In order to do the above, I have allocated my trading strategy across the following 4 strategies (all non-correlated):
a)Trend following strategy – #Nifty and #BankNifty - based on support and resistance
(3/n)
a)Trend following strategy – #Nifty and #BankNifty - based on support and resistance
(3/n)
b)Trend following strategy – #Nifty and #BankNifty - based on certain technical indicators
difference between (a) and (b) is that in (a) if my SL gets hit during the day, I will reverse my position immediately…but (b) is a EOD system where I will wait till 3:25pm (EOD)
(4/n)
difference between (a) and (b) is that in (a) if my SL gets hit during the day, I will reverse my position immediately…but (b) is a EOD system where I will wait till 3:25pm (EOD)
(4/n)
to see if I need to reverse my position
c)Directional option selling - candlesticks 15 min TF using certain technical indicators
d)Directional stock FUT - PnF charting
(5/n)
c)Directional option selling - candlesticks 15 min TF using certain technical indicators
d)Directional stock FUT - PnF charting
(5/n)
Now, (d) is something I want to talk more. This is a @madan_kumar style experiment. What I am going to do here is that I will start with 1 stock & trade 1 lot in it. This is a stop-and-reverse strategy based on PnF EOD TF. In this strategy, I am going to simply use DTB
(6/n)
(6/n)
(for going long) and DBS (for going short). The day I earn Rs 2 lacs profit, I will add one more stock, and when my profit becomes Rs 4 lacs, I will add the 3rd stock and so on. Till the time I don’t earn Rs 2 lacs profit, I will remain with this single stock.
(7/n)
(7/n)
I am going live with strategy (d) from Monday onwards with Mindtree. Why Mindtree? No rocket science. Just scanned all F&O stocks who had given a DTB and selected the one who closest to the SL.
END!
END!
Friends,
You would recall my above☝️ tweet on the importance of having "non-correlated" strategies and the various such strategies I am trading live. Below is the result for May and June series... (1/n)
You would recall my above☝️ tweet on the importance of having "non-correlated" strategies and the various such strategies I am trading live. Below is the result for May and June series... (1/n)
In all there are 6 strategies... (1) BEES (2) Option selling (3) Kindex (4) Stock FUT (5) Manu Bhatia (6) Pivot
(1) BEES is nothing but my return on my collateral which I hold in the form of #nifty BEES (hedged by December puts)
(2) Kindex is a trend following system
(2/n)
(1) BEES is nothing but my return on my collateral which I hold in the form of #nifty BEES (hedged by December puts)
(2) Kindex is a trend following system
(2/n)
that I have deployed on both #nifty and #niftybank #banknifty
(3) Option selling is what I publish on telegram (link on profile page)
(4) Stock FUT which I trade using TradePoint by @Definedge
(3/n)
(3) Option selling is what I publish on telegram (link on profile page)
(4) Stock FUT which I trade using TradePoint by @Definedge
(3/n)
(5) Manu refers to option trades taken based on telegram channel run by our good friend @bhatiamanu
(6) Pivot is again a trend following system that I have deployed on #nifty and #banknifty #niftybank (but completely non-correlated with Kindex)
(4/n)
(6) Pivot is again a trend following system that I have deployed on #nifty and #banknifty #niftybank (but completely non-correlated with Kindex)
(4/n)
The objective is to diversify your trading capital among such various strategies so that some day something works, the other day something else works...
Now, I think, June was an exceptionally good series and it is HIGHLY UNLIKELY that this result would be repeated
(5/n)
Now, I think, June was an exceptionally good series and it is HIGHLY UNLIKELY that this result would be repeated
(5/n)
again, or every series. So, it will be my serious endeavour not to get overly excited.
As Gavaskar said, when a batsman hits a century, he should face the next ball as if he is starting from zero...so July is a new series and it will have its own set of challenges
(6/n)
As Gavaskar said, when a batsman hits a century, he should face the next ball as if he is starting from zero...so July is a new series and it will have its own set of challenges
(6/n)
So, let's forget all the good and bad things that happened in June and start July with a clean slate!
🙏🙏
🙏🙏
Lastly, one more point... I work full-time in a company and all the strategies that I have developed are such that I have to spend hardly 5-10 mins in punching my trades/ orders. The only exception is the option selling (Strategy #2) where I have to do some monitoring!
Friends,
The July series is over. If you see the thread above☝️ I had shared the trading results for May & June. Here's for July 👇. I have often mentioned about the importance of having "non-correlated" strategies (as represented by each of the columns). Let me share a
The July series is over. If you see the thread above☝️ I had shared the trading results for May & June. Here's for July 👇. I have often mentioned about the importance of having "non-correlated" strategies (as represented by each of the columns). Let me share a
little about each of these strategies.
1) BEES - I had invested my entire capital in NiftyBEES which I was using as a collateral for my F&O margin. You would have seen my tweet couple of days back where I mentioned that I have completed exited out of
1) BEES - I had invested my entire capital in NiftyBEES which I was using as a collateral for my F&O margin. You would have seen my tweet couple of days back where I mentioned that I have completed exited out of
this position and now am fully in cash. So, will not be seeing any movement in this column in August.
2) Option sell - these are my telegram trades, about which you are all aware...so no need to say more
3) Kindex - this is a proprietary trend-following strategy that I have
2) Option sell - these are my telegram trades, about which you are all aware...so no need to say more
3) Kindex - this is a proprietary trend-following strategy that I have
developed on which I trade both #nifty and #banknifty...I have talked about this earlier also in this thread
4) Stock 0.25% - this is my famous "2L per week" strategy for which you paid me such a big tuition fee😃...as you would see, just reached 94k so far...still some time to
4) Stock 0.25% - this is my famous "2L per week" strategy for which you paid me such a big tuition fee😃...as you would see, just reached 94k so far...still some time to
go before I reach my first 2L milestone...
5) Stock 3% - this is same as stock 0.25% with the only difference that here I apply a much bigger 3% box size and therefore the time-frame is quite large (almost like weekly/ monthly)...and another important difference is that, this is
5) Stock 3% - this is same as stock 0.25% with the only difference that here I apply a much bigger 3% box size and therefore the time-frame is quite large (almost like weekly/ monthly)...and another important difference is that, this is
a "long-only" strategy. Meaning, as soon as I get DBS, I exit the position (don't do "stop-&-reverse" like stock-0.25% strategy)
6) Manu - these are telegram trades given by our dear friend Manu (who needs no introduction obviously)
7) Lastly PIVOT - another trend following
6) Manu - these are telegram trades given by our dear friend Manu (who needs no introduction obviously)
7) Lastly PIVOT - another trend following
strategy that I apply on both #nifty and #banknifty... but this has very different entry/ exit rules as compared to Kindex and therefore is "non-correlated" with Kindex
I must honestly confess, after June, I thought I will never repeat such a performance (and I mentioned this
I must honestly confess, after June, I thought I will never repeat such a performance (and I mentioned this
also in one of my earlier tweet in this thread), but July turned out to be even bigger.
While I am obviously happy & thankful to God 🙏, I am equally preparing myself mentally for a "bad" August. Let's see. August is a fresh month. RESET. RESTART.
Will be back on 27-Aug!
While I am obviously happy & thankful to God 🙏, I am equally preparing myself mentally for a "bad" August. Let's see. August is a fresh month. RESET. RESTART.
Will be back on 27-Aug!
If I could one more thing... there is a popular misconception that in order to make money in stock market, you have to devote a lot of screen time and constantly in "action".
As I have mentioned earlier, I work full-time in a senior position in a company and the above results
As I have mentioned earlier, I work full-time in a senior position in a company and the above results
are a testimony to the fact that, what is important is not "screen-time" but how you develop a bouquet of "non-correlated strategies" and implement them with patience and discipline.
All my strategies are such that I can virtually afford to not look at the screen on a
All my strategies are such that I can virtually afford to not look at the screen on a
continuous basis. Maybe just take a look once every hour/ couple of hours. Most of my orders are usually punched in the pre-open session (before 9:15) and some trades (like my telegram option trades) I take post 3:15...
