Thank you
Thats how it is… The Price action setups would look largely different on a Smaller TF compared to a Larger TF… Price moves in different way in different time frame… On one time frame it could be uptrend while the other shows a prolonged Downtrend… Its again comes down to the context in which your particular setup occurs… In PA we have a saying that context is 95% and signal bar is only 5%… The context is everything to your left…
The rule is to choose a trading time frame that suits you and then multiply it by 4 - 5 times to get the Higher TF that way you can trade the patterns on your chosen time frame in the context of the Larger TF trend or patterns giving you that extra edge in your trading… For example if your trading TF is 15Min then the Higher TF would be 1Hr any more than that would have large discrepancies in the setups… If you choose 5Min then 30Min would be an accepted Higher Time Frame…
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could You give me some of intraday tips, in squence order?
following tips…etc.,…
Thank you for explaining in such detail 
No problem
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Hello @G.Bharadwaj,
First of all thank you for sharing your experience and most importantly what has worked well for you. This is not a very common trait in this line of work. I still remembered the Zerodha article since it came out where you outlined your broad strategy and most importantly the money management part.
I typically do not do scalping but intraday swing trading – however, I had always been plagued by the question related to capital management, impact cost and issues with scaling up. Your interview actually provided some light on those topic. I have few question for you if it’s not too much:
- How do you manage your capital now? Do you still maintain a fixed amount bucket and withdraw as and when the bucket is full?
- Do you use leverage for trading now?
- Do you still use EQ at all or moved 100% to Options?
- During 2013/14 when you traded EQ only, how much leverage did you use for each trade?
- What has been your max drawdown period and as what % of your capital
- How do/did you manage impact cost?
- Typically how many trades do you execute per day?
- Do you have a resting time during the trading hours? I can’t possibly imagine a razor sharp focus for chunk of short times during the whole day for myself.
- I have seen that in long run around 30-40% of my total profit goes to brokerage + stt ( leave alone yearly income tax) even though I use zerodha. Did you ever calculated this?
Regards,
somu
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Hai Bharadwaj
Good evening
Could u guide me n best intraday indicator you follow for intraday scalping
What is best time for entry / exit of stocks
Some guide line on stop loss u follow on each script traded by you ,
Can we take multiple trades together for intraday with stop loss pls confirm back
Best trading tips and guidelines from your end
Best Regards
Suresh Ramaiah
Script is wrong. Real word used is Scrip.
1 2 4. Yes capital management has not changed 1 bit, except 5 years back i was just keeping 50k in account and buying for max leverage allowed, however now a little more as i am doing futures. I withdraw everything above the allocated capital and tap up as and when required. Leverage in the sense all orders are MIS and sometimes i use CO BO orders as well
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2014 onwards started to gradually move to stock futures. 15 16 17 was 100% futures, From this year i have been observing spread and depth in stock option market and as of now 80 F and 20 O . . this doesnt look like it will improve soon as recent market volatility and fall has surely hit volumes in stock futures for the worse.
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Continuous loss sessions seldom crosses 6-7-8 at the most and happens once in 3-4 months for sure during which time drawdown will be about 30-40% of the capital. (Given the huge leverage in MIS we should not actually speak about either returns or drawdowns … but since you asked…
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For the only highly liquid stocks i trade, impact costs are never really a problem, but earlier this month i was shocked to see spread of 1-2-3-4 rupees in even big names, during which time we obviously cant scalp and should just sit on the capital observing every move and waiting for things to pickup.
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15-20 trades per day most the time, but when markets are too erratic with gap ups downs, several 100 points travel for nifty in a session and the like kind of days hardly 5-8 trades.
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Most of the time am not in a trade is my resting time as it doesnt involve any adrenaline rush we have while the position is open. As i exit in minutes at the most, even 20 trades will mean positions will be open for about 1 hour in total spread across the 6 hours so its really no strain/pain at all.
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Surely atleast a quarter of my profits are reserved for all the charges.
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Thank you so much. Few of follow-up question, if I may.
- Did you notice any particular time frame (say 10-11 and 2:45-3:15) you get most of your desired trade setup? or is it usually all over the place?
- If I understand your exit criteria for losing positions correctly - you exit a losing position either within 30 seconds or up-to the stop loss amount whichever happens first. Am I right?
- How do you decide the size of bet? If I remember correctly you mentioned that you allocated the max amount to each trade as you keep max one active position. Do you still do the same or vary the size depending on conviction?
- Money management: do you use 3 bucket? capital - buffer to replenish capital - income? whenever capital goes down below “X” amount, you would top up from buffer, so that capital remains same?
- Negative month - do you usually finish each month in +ve MTM?
- Long vs Short - what type of trade is usually more profitable for you?
- Most importantly: how do you decide when to exit your profitable position? Say a +ve position steadily stays > 1.5K for 1 min - would you still exit at 2 min or trail it as long as it goes?
Once again - thank you so much for opening up the world of scalping for indian traders and helping us newcomers.
Regards,
somu
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