Intraday trading suggestions

The person who considered nearly 1 lakh loss per lot is very Mahan trader in my opinion. The issue here was the time gap between end of trading and fixing of settlement price. And believe me many people had pointed this out earlier as well.
I would have went long but then only with hedge! So I would have bought very cheap PE option as well.

VVIP point in any kind of trading.

There are sages in trading bro. They have conquered there emotions. I personally know someone who actually went short in crude but then again with hedge. He bought PEs as well.

Dear ,

First of all collect all capital you have to invest.

Then distribute that capital into 100 trades.

Stoploss amount must be same for all trades.

Reward should be double of stoploss.

For ex if you have 1 lakh RS.

Then you have to do 100 trades and each trade should have 1000 RS sl and 2000 RS tgt.

Predict the mkt yourself

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Taking small loss, keeping greed on control, following indicators, follow strict disciplineā€¦

All these lines are really fascinating to hear but pretty much hard to follow in real market hours.
Those who tells all these , I doubt whether they are following it.

We are human so all emotions like greed fear jealousy anger are part of our emotions. Those cant be suppressed. We need to find the way to feed then without making our loss.

According to you, profits are small but losses are so big that it wipes out a cumulative days profit. The problem is not with you, the problem is with the intraday. Intraday is the most difficult where making money is very much hard compared to loosing money. In my suggestion dont concentrate much on intraday day. Try to do swing trade.

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Well said, Gautamā€¦ we should maintain our stability while tradingā€¦ market is volatile most of the timeā€¦
we should be patient definitely.

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Shubham,

Hereā€™s a life-changing strategy for you (and any intraday trader). As a statistician and data analyst, it took a decade for me to crack this simple strategy.

If you believe that casino companies make millions of dollars every year, then you can win too because casinos follow exact same logic that I am going to explain.

There are 3 golden rules for anyone to win stock market game in LONG RUN.

  1. Statistical Edge - you need to come up with a strategy which gives you even a small statistical edge. Hereā€™s what you can do. Sell index ATM straddle every day morning around 10 AM and sell at 3 PM with 30% or 40% SL. You can test it yourself with any backtesting formula.
  2. Bet size/Position sizing - Make sure that you donā€™t exceed 3% loss in any given moment. This is precisely the golden secret Casinos follow.
  3. No. of bets - There is a concept called ā€œLaw of large numbersā€ in mathematics which says that (after translation) if you keep you doing same type of trading again and again, your practical profits comes closer to theoretical proits.

Of course, there are some challenges that you will face if you do this manually and so, I built a simple bot to overcome those challenges (you can get it for free if you want :slight_smile: ) but you can at least start paper trading for a couple of months and see how it works.

Remember: No technical or fundamental analysis even comes closer to the type of accuracy that you see in this strategy

Bro i lost 50k in 2 years, but never stopped trading. Made some huge speculative positions that was the biggest blunder I did.
The art of consistency is in your lossesā€¦learn from trade logs, your lossesā€¦
Try to read, learn the pattern, psychology of trading.

Firstly, you meant to exit at 3 PM right?
Also, have you back-tested this? If yes, can you share the win%, losing streak and max-drawdown?

Thanks!

Hey,

Yes, 3 Pm every day.

Yes, I did a lot of backtesting for 2 years and win percentage is around 70% and winning streak 12 trades, losing 5 trades, drawdown is around 25k.

I am a very conservative trader and follow strict risk management process.

We get a straddle for 30k to 40k in MIS intraday but I reserve 1 Lakh aside for 1 straddle. That way, I make sure any level of drawdown is not going to effect me.

Returns are around 50% per year (after considering slippage of huge 1%, brokerage and other charges).

I know itā€™s a little hard to believe and so, in my blog (30cagr.com) I am going to prove that very shortly (n a week or so) and also developing some bots to offer for free to my users :slight_smile:

for Nifty or BankNifty?

Not at all. If you are an options trader you would know :slight_smile:

Bots would mean that you have to develop some and put it up on a server (AWS or the likes) all of which would cost money. What is your motivation to offer them for free?

Works for both nifty and BN. In fact, I use it got both because backtesting proved that drawdown is pretty less.

But there is a catch - if you do manually with 40% sl then some times your sl hit but on charts you donā€™t see it. Thatā€™s because no firm or broker in India get all ticks per second. And so whatever you see in backtesting is also incorrect and if you think logically we also need that incorrect way to earn. I spent almost a year to prove this by doing manual trading and losing money because you donā€™t get to know this if you do paper trading.

So, I started building bot that first checks chart and only if our sl price is shown, it will exit our position in kite at market price.

I know itā€™s really difficult to picture what I just said. So I plan to make a detailed video and put in my blog and YouTube channel.

I ended up spending almost 2 lakhs for it and i am enhancing it currentlyā€¦ Will be done in a month or so.

Why offering for free? Not really, I plan to offer only to those who make use of my referral id and trade in zerodha or Upstox.

No server business, just install python and run it from your laptop.

So what data are you using really to back test this? Have you sourced from a recognized data vendor or downloading from broker terminal?

ATM straddle with an SL is a very common play for option traders and it does make money, much more than the 50% ROI that you said if you use the right parameters of entry, exit and SL. So much so that there are some algo firms that I know who have built actual trading bots (not just script running off of your laptop) as a service that does this.

well wellā€¦ where do I begin! Iā€™ve always had a gripe with people doing this. Iā€™m of the opinion that real traders with real money doesnā€™t need this bottom feeding at all. But every man for themselvesā€¦do what suits you!

Nobody is asking for proof of anything here. But if you are seeking for yourself, hereā€™s an easy way;

  1. Go to console and pull up your own P&L for past 1 year.
  2. If you find a 7 or 8 figure number in green colour you have proof.
  3. And if you find a red number instead, you are full of shit.
  4. QED. Hence proved, Case closed, end of story.

Moral of the story: Proof is in the pudding.