1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures - Bac

[reachjj]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Hi all,

I am facing the below attached error messaged whenever I try to update the data "Stock Tracker" sheet. It was working fine till last week, but suddely it stopped working. I am using the latest version 3.3

Please help me.

 

[rrekhani]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

HELLO RAJ,
The excel sheet has some errors. Moreover no button to refresh the futures page.
Rajesh

 

[bkvageesh]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Is it possible to make 652 lakhs in 497 Trading days with a starting capital of 1 lakh using NIFTY Futures.

Yes theoretically it is possible.

So what is the Principle behind this strategy?

1. NIFTY is Trending only 20-25% of the time and so why always take 20 points Stoploss when 80% of the time you are going to loose. Why not take 7-10 points loss and close the trade if stoploss hit.
2. 20-25% of the time when the market is trending, NIFTY never crosses the opening price by more than 10 points. So in those cases NIFTY always gives on an average 55 points on the LONG side and 77 points on the SHORT Side.
3. 80-20 Principle. 80% of the losses comes from 20% of the trades and so 80% profit can come from 20% of the trades.
4. Why do we need to spend hours before the monitor, while we can spend maximum 30 minutes a day. (15 minutes during opening and 15 minutes during closing)

So let us say we do hundred trades.
75 trades with a loss of 10 points = 750 points loss
25 trades with a gain of 65 points = 1625 points gain
Net gain = 875 points in 100 trading days.
If you started trading with a capital of 1 lakh and 2% Risk, the profit would be Rs 1,75,000.
With pyramiding (reinvesting the profit ) it would turn to crores.

Attaching the excel sheet with the backtested results with the data of last two years for NIFTY.

Also attaching back tested result for the SBIN stock. SBIN unlike NIFTY falls in the 50:50 category. ie 50% of time is trending and 50% it is Rangebound. So it is one of the highly Trending stock. The Parameters are different for SBIN. For eg... your stoploss should be around 1% in SBIN where as for NIFTY your stoploss should not be more than 0.2%.


Will explain the strategy in detail in the next post.

Please visit the post number 839 for Latest links and Settings to be done for the Excel tools

http://www.traderji.com/advanced-tra...tml#post720252

Attaching the excel sheet with the backtested results with the data of last two years for NIFTY.

-------------

Hi,

Would u please upload the excel sheet, as it's currently not available

 

[Option.Trader]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

I am currently out of India and not able to Trade or work on the tools. I will provide the options tool once I am back to India.

Raj

Here's a snapshot of how the Option interpretation could look like
For trade on March 1, 2013

 

[reachjj]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Raj

Here's a snapshot of how the Option interpretation could look like
For trade on March 1, 2013

Can you please explain how to interpret this information and take the positions accordingly?

 

[DSM]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Look at the OI figure. If OI is increasing, means means new money is flowing into the market, so the the present trend (up or down) will continue.

Declining open interest means that the market is liquidating and implies that the prevailing price trend is coming to an end.

In other words,

Increase in OI, and Increase in price, generally means long positions are being built.

Increase in OI, and Decrease in price, generally means short positions are being built.

Decrease in OI, and Increase in price, generally means short covering.

Decrease in OI, and Decrease in price, generally means long unwinding.

Can you please explain how to interpret this information and take the positions accordingly?

 

[Option.Trader]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Look at the OI figure. If OI is increasing, means means new money is flowing into the market, so the the present trend (up or down) will continue.

Declining open interest means that the market is liquidating and implies that the prevailing price trend is coming to an end.

Well said DSM... basically the same thing which is put in as excel rules...

I have a theory, though it has its pitfalls... when the OI on any nifty strike price goes above 70L.. it indicates strength in that particular trend... probability of that trend going bad is less... for eg if 5800 Call reaches 70L.. that means the down trend is intact and the probability of Nifty crossing it is remote... What about Sl...when a strike price liquidates more than 12% of its contracts...i.e unwinding of contracts... then the trend is broken... lets see if Raj could somehow put this in his excel or have a way of doing a back test of this theory

 

[DSM]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Nice viewpoint.

I need to check the 70L OI contract theory, which seems logical, and which I presume you have been tracking.

Well said DSM... basically the same thing which is put in as excel rules...

I have a theory, though it has its pitfalls... when the OI on any nifty strike price goes above 70L.. it indicates strength in that particular trend... probability of that trend going bad is less... for eg if 5800 Call reaches 70L.. that means the down trend is intact and the probability of Nifty crossing it is remote... What about Sl...when a strike price liquidates more than 12% of its contracts...i.e unwinding of contracts... then the trend is broken... lets see if Raj could somehow put this in his excel or have a way of doing a back test of this theory

 

[Option.Trader]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Nice viewpoint.

I need to check the 70L OI contract theory, which seems logical, and which I presume you have been tracking.

Yes.. have been tracking for a while... tried to put a theory behind it... 70L is almost 25% of all options contract traded...

 

[Relish]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Hi Seniors Need help to correct this problem. I am using MTP 3.3. I am not getting top 20 futures value correctly. I tried to correct it by editing in query section but no valid link. I did not touch anything except editing query. I update and got this problem. Please see pic for how it looks.

thanks