Help required in risk management in intraday cash stocks?

Trading
1

I have intraday cash market strategy to execute.

I need help from you people regarding below :

  1. entry ( close price or 0.5% above close or what is best?)
  2. When to exit
  3. What is best stoploss - most people suggesting that not risk 1% of capital but due to intraday margin it is 1*5 i.e. 5%, can you please help here.
  4. Can you please give example for position sizing.

I have 5 lakhs capital , how best I can utilize in cash intraday market?

Thank so much.

2
  1. Backtest
  2. Backtest
  3. Margin has no relation to capital. God knows why people keep getting confused here.
    You have an entry price and a stop price. If stop hits, you lose Rs x based on your qty.
    This x will be some % of your capital. This is your risk of that trade.
    capital = the money you have allocated to trading - no relation to margin. margin only is a constraint on how much position you can put on irrespective of trade risk.
  4. Simple fixed % risk per trade works well enough.
    How much % - backtest and check what your historical max Drawdown was. Adjust risk per trade to make it comfortable - say 10%-15%. Also assume future DD will be worse. Even 2x should be manageable. 1% risk per trade generally is too high, but it depends on how many trades you take.
  5. 5lakhs. Assume you will lose money /not make money for initial 3-5 years. With that assumption, there is no reason to lose more than needed - so allocate small capital - something you are happy to lose as tuition fees to the market.
    Next, say if you now have developed as a trader, have experience, have track record, have backtest, have forward test, etc. 5L is very small capital - its not enough to make a living.
    Intraday generally is a full time job and you need to be ready to respond to things - even for automated traders. Assuming that, its much better to make a living outside market then to slave it out with 5L capital. That said its ok to trade with such while scaling up when you have en edge ( with money ready to be deployed when ready).
    Finally, Zerodha brokerage is very high for small positions and will likely wipe out most of the edge. Don’t trade intraday with Zerodha if positions are small - Use calculators provided by them to understand this.