i keep watch on all global and local events like greece event , msci addition of china on 9 june and all other things especially bond routing and write options according to it , second thing if i have to go short on nifty { i only trade in index } , i always buy nifty in cash and then go short on futures , as a layman i does not know fundamentals of stocks but i always know that because globe is full of liquidity , so index level can always be achieved.
I follow two different mechanical system to trade in indian equities. One for Intraday and other Nifty positional system.
Nifty positional system:
Mechanical trading systems are one of the greatest developments in the history of trading. Turn them on, connect them to your broker, and they will trade for you. However, developing a good mechanical system is not always so easy, especially if you aren't aware of the many pitfalls involved.
Here's the system we have developed for trading Nifty automatically. Its a SAR(Stop & Reverse) swing trading, so we will be always in a trade all the time irrespective of market goes up or goes down. The system has given steady returns since 2008.
Trading 1 lot of Nifty from January 2008 to December 2014 has given almost 18000 Nifty Points.
Rs. 1,00,000 invested in this Algo in Jan 2008 has made Rs.9,00,000 by December 2014. That is 900% returns in just 6 years.
If the same Rs.1 Lac is invested in Goldman Sachs Nifty fund (which is a top fund with 5 star rating from Crisil), it would have given Rs.1,40,000. That is only 40% returns.
So the algorithm that we have developed has not only beaten Nifty benchmark, it has also given much higher returns than Goldman Sachs fund.
Investing in markets is risky, only when we don't understand what we do, and equity investments will have fluctuations in returns as market moves up and down. Like any other funds, the Algorithm we developed has also had drawdown period which is only 40%.
Yearly returns of thealgorithm
Source: http://www.squareoff.in/2015/05/nifty-algo-trading-system.html
Intraday System:
Day Trading is a risky and challenging pursuit: buying stocks and selling them again in the same day, making money off tiny fluctuations in the price of a stock over a few-hour period is not a easy job. Market makes moves in fraction of seconds and we need to act very fact to be successful at trading.
And we can act fast only when we have all the information about a stock, there are 100's of stocks out there for trading, each day some random stocks comes in the list of top gainers/losers at the end of the day. How do we decide which one we should choose for the day to perform successful day trading?
This is the problem am trying to solve using an algorithm that I developed. The Algo would start scanning all stock futures in Indian Equities, picks up the high probability trades based on mathematical models and triggers an automatic email alerts to the registered users with entry price and stop lossin fraction of seconds.
Sample alert:
Once an user receives the trade alert, he can concentrate only on those stocks, monitor it and exit the stock based on the comfortable profit levels as per the user.
The Algorithm will not provide exit alerts because, the risk appetite and individual psychology varies for each traders. The important part of this Algo is its a proven method with back tested on all stock futures.
More details on alert subscription and Algo details- http://www.squareoff.in/2015/05/algorithm-will-send-you-intraday-email.html
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And one more important thing , i never use technical software nor i am not able to understand it!