Lessons for Day Trading

 

Keep strict stop loss or a close watch, Take exit immediately If SL hit

Its a normal Tendency to change the stop loss in the middle of trade with the hope of saving a losing trade

Taking Small losses to preserve capital will not broke your trading career but Big losses do

Never ever touch your SL when its placed rather trail it, if trades started to move in profit

Never regret if you miss the Trade opportunity, Focus on Next trade opportunity

In intraday trading we will tend to miss the good trading opportunities but if we started to regret on missed chances we will start to miss few other chances

We should be in better emotional state when trading

Quality of trade matters the most ‚ÄďNever over Trade

Always plan your trades and execute your plan in the live market

Trades will which is strong signal and which once is weak one never take the weak signal

Include Slippage and transaction cost when back testing your system

Transaction cost is very important factor in intra day trading since profit margin will be very less you should know your break even point before taking the trade

Always include Slippages in back testing

Trade with your Own Analysis, Never ever lookout for Tips

We never seen people who made consistent profit with tips,its just short term fix but it will make you poor in the long run

Never have expectation from Market

Never expect market to move in any direction just prepare for any movements

Use Time based Stop loss when required-The longer the duration your trade remains in negative direction, higher possibility of SL hit

Don’t take the trade if risk to reward ratio is not favorable

Always take high risk reward trades-you have better chance of survival ūüôā

When think about intra day trading , always trade with market trend

Trading against the market breadth is like swimming against tides,dont waste your energy go with flow

Most Profitable Intraday trading system for Nifty

Hi All,

Happy to share you all one of the most profitable intraday trading system for nifty

While everyone is busy paying for intraday trading tips it’s our time from chase trend capital to give away one of the most profitable trading system to retail community

Requisite for trading the below system:

 Discipline to follow the system irrespective drawdowns and profits, if you think you have Discipline to follow the system you can really make money from this system

System Approach:

 The below is system is inspired from camarilla pivot concept with proper modification for nifty

While camarilla pivot can be used in many ways I have designed this system to capture break outs and breakdowns

The trades will be generated on the basis of day trend in nifty

System Rules:

Buy=If price crossed above the H4 camarilla resistance

Short= If price crossed below the L4 camarilla resistance

Cover at 03:15

Sell at 03:15

Exit if stop loss is breached and SL=0.4%

 

Calculation of H4 and L4

H4 = [0.55*(H-L)] + C

L4 = C ‚Äď [0.55*(H-L)]

Amibroker AFL code:

I have designed the below system in amibroker for back testing purpose hence I am providing afl code you code in spread sheet and generate levels even you can manually calculate easily

H1=TimeFrameGetPrice(“H”,inDaily,-1);

L1=TimeFrameGetPrice(“L”,inDaily,-1);

C1=TimeFrameGetPrice(“C”,inDaily,-1);

RES=(0.55*(H1-L1))+C1 ;

SUP=C1-(0.55*(H1-L1));

Buy=Cross(C,RES) AND TimeNum()<145500;

Short=Cross(SUP,C) AND TimeNum()<145500;

Sell=Cross(TimeNum(),151500) OR Short;

Cover=Cross(TimeNum(),151500) OR Buy;

COL1=IIf(BarsSince(Buy)<BarsSince(Sell),colorGreen,colorWhite);

COL=IIf(BarsSince(Short)<BarsSince(Cover),colorRed,COL1);

Plot(C,”C”,COL,styleCandle);

Plot(RES,”BUY ABOVE”,colorRed,styleDots|styleStaircase);

Plot(SUP,”SHORT BELOW”,colorGreen,styleDots|styleStaircase);

Buy=ExRem(Buy,Sell);

Sell=ExRem(Sell,Buy);

Short=ExRem(Short,Cover);

Cover=ExRem(Cover,Short);

Back Test Report:

The below system is tested in 8 years of data and commission of 260 rs detected to give real trading scenario Summary of back test results:

Profit = 535570.45 (1071.14%)-The profit is calculated with fixed quality of 75 and no compounding and reinvesting considered

MaxSysDD = -30365.17 (-20.79%)-its maximum loss you would occur when following the systm

Total trades=1384

Winners = 606 (43.79%)

Losers = 778 (56.21%)

Yearly analysis:

Summary for the year 2008

Profit = 119105.48 (238.21%), CAR = 239.35%, MaxSysDD = -21949.35 (-20.79%)

Summary for the year 2009

Profit = 44384.82 (88.77%), CAR = 89.43%, MaxSysDD = -16193.22 (-18.86%)

Summary for the year 2010

Profit = 47216.30 (94.43%), CAR = 96.24%, MaxSysDD = -17705.35 (-25.75%)

Summary for the year 2011

Profit = 25700.45 (51.40%), CAR = 52.10%, MaxSysDD = -30365.17 (-44.09%)

Summary for the year 2012

Profit = -3304.75 (-6.61%), CAR = -6.68%, MaxSysDD = -23328.67 (-35.73%)

Summary for the year 2013

Profit = 84244.45 (168.49%), CAR = 169.95%, MaxSysDD = -15320.37 (-19.78%)

Summary for the year 2014

Profit = 62837.97 (125.68%), CAR = 126.69%, MaxSysDD = -22268.55 (-27.71%)

Summary for the year 2015

Profit = 95703.15 (191.41%), CAR = 193.13%, MaxSysDD = -23665.88 (-22.04%)

Summary for the year 2016 till April

Profit = 59333.83 (118.67%), CAR = 1002.04%, MaxSysDD = -20766.45 (-26.21%)

Portfolio Equity:

1_-portfolio-equity

Profit table:

3_-profit-table

Profit Distribution:

profdist

Detailed back test report

 

Statistics

 

All trades Long trades Short trades
Initial capital 50000.00 50000.00 50000.00
Ending capital 585570.45 264616.52 370953.93
Net Profit 535570.45 214616.52 320953.93
Net Profit % 1071.14 % 429.23 % 641.91 %
Exposure % 2.53 % 1.39 % 1.15 %
Net Risk Adjusted Return % 42275.91 % 30928.52 % 56019.35 %
Annual Return % 34.36 % 22.14 % 27.19 %
Risk Adjusted Return % 1356.02 % 1595.28 % 2373.18 %
All trades 1384 710 (51.30 %) 674 (48.70 %)
 Avg. Profit/Loss 386.97 302.28 476.19
 Avg. Profit/Loss % 0.09 % 0.07 % 0.11 %
 Avg. Bars Held 35.06 38.07 31.89
Winners 606 (43.79 %) 323 (23.34 %) 283 (20.45 %)
 Total Profit 1885713.75 895640.00 990073.75
 Avg. Profit 3111.74 2772.88 3498.49
 Avg. Profit % 0.74 % 0.66 % 0.84 %
 Avg. Bars Held 48.95 51.36 46.19
 Max. Consecutive 10 9 7
 Largest win 24625.00 12793.75 24625.00
 # bars in largest win 63 68 63
Losers 778 (56.21 %) 387 (27.96 %) 391 (28.25 %)
 Total Loss -1350143.30 -681023.47 -669119.82
 Avg. Loss -1735.40 -1759.75 -1711.30
 Avg. Loss % -0.42 % -0.42 % -0.42 %
 Avg. Bars Held 24.24 26.98 21.53
 Max. Consecutive 9 9 10
 Largest loss -6560.00 -3710.00 -6560.00
 # bars in largest loss 2 2 2
Max. trade drawdown -18326.25 -16479.53 -18326.25
Max. trade % drawdown -3.98 % -3.27 % -3.98 %
Max. system drawdown -30365.17 -28932.77 -37627.37
Max. system % drawdown -20.79 % -20.87 % -23.65 %
Recovery Factor 17.64 7.42 8.53
CAR/MaxDD 1.65 1.06 1.15
RAR/MaxDD 65.23 76.44 100.33
Profit Factor 1.40 1.32 1.48
Payoff Ratio 1.79 1.58 2.04
Standard Error 29684.70 15130.64 19269.57
Risk-Reward Ratio 1.59 1.51 1.27
Ulcer Index 3.82 6.55 6.17
Ulcer Performance Index 7.59 2.55 3.53
Sharpe Ratio of trades 2.34 1.99 2.73
K-Ratio 0.0099 0.0093 0.0079
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