Is there any strategy whose backtesting results 20% return per annuam

Dear Sir,



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Hi Anand,

Let me give you some details about my trading journey happened till today. I started my trading on 2013 April like anyother novice. I just didn't know anything about stocks and technical analysis except that they move and we can make money out of it. As they say beginners luck, I made few small winners and big losses in the gamble i have done. I have continued the same till december and the winners have blinded me from the capital erosion caused by the big losers. Just in a matter of 6 months,  I have lost around 5lkhs.

         Then i came to know that there is something called Technical analysis in trading. Bought John Murphy's Technical analysis of financial markets which paved the way to my trading career. With some insight, I started building some mechanical systems and backtesting them. Initially, like you, I couldn't a find system with good backtested results and my search kept on going until i found a system developed by Robert Miner called Dual Timeframe Momentum Strategy whose backtested results were outstanding. I was excited to go live with it. Again, there was no luck as i always stood as a loser infront of this market.

          I kept on searching for the mistakes, that is the time where I have developed my money management rules. This time i haven't made money as always. But this money management had limited my losses and i started to believe that market has some space for me in it. 

          Then i came to know about YTC price action trader 6 volume series. This had shed light on me. Believe me, I have read these 6 books like 8 times.This is a discretionary approach which may not be suitable for everyone. I have been following that strategy for the past one year, and the returns are decent till now

        What im trying to say is, PLEASE,PLEASE, PLEASE.... Don't run behind the systems.There is no holy grail here. Take ideas from books. Build your own system which suits your psychological state.Copying will never work here in the market.

Finally, I'm sorry for this big answer. :D

All the best and Happy trading... :)


it depend upon your skill how you interpret any chart with the given indicators, however I will try to help you by showing my approach to trade in the trending and sideways market, I personally use bollinger band with 5 sma

buy rules: the bull candle should close above 5 sma after touching the lower bband and stoploss will be below the low of previous bearish candle

there may be two scenarios: one is if the market is side ways it will give respect to our trade entry as we are taking it in the bottom not at the top as we do in trending market.

second case, if the market is trending then upon our stoploss we enter a new short position

I will summarize once again, when u enter a long trade say 100 shares by placing stop buy order above the high of bullish candle as mentioned above with stoploss double quantity i.e.200 shares below the low of bearish candle mentioned above

if price goes as we expected then trial stoploss and cancel the earlier stoploss of 200 shares

if price goes against our position then from 200 shares, 100 shares will be squared off in loss and new short position is open with 100 shares and place the stoploss above the high of previous candles

I have traded in banknifty just now, if some one interested i may show them or you can check by yourself after applying indicators i mentioned above, one more thing your stoploss will be triggering 50 % of time in worst case scenario, but the ultimate profit will be more becoz of risk reward ratio.

if you have any doubts you can ask [email protected]

We have created multiple strategies which have CAGR>20% per annum. However, though it looks good on paper, you need discipline to earn such returns. RIsk mananegment comes foremost rather than any quantitative strategy. Please have a look at our profitable trading strategies along with AFL code/Excel Sheets in the below links

Amibroker Trading Systems

Excel based Trading Systems


Better start learning technical analysis by yourself.

You can start from zerodha varsity, join forums like etc

Thanks for your nice advice.I will go for it.

Hi Sir,Can you send me YTC Price Action to my mail id: [email protected]‚ĶI want to learn price action.This book is costly.If you share this book then I will be very helpful.Thank you.