Okay ....lets start
Stocks Universe (or baskets) is NSE F&O stocks only...
Out of 136 stocks, we will select 5 stocks only...
The selection of stocks should be purely system-driven, via scanner ..We will discuss a selection of stocks later stage.
Now we have 5 stocks to day trade. We trade those 5 stocks using the simple ORB method in the first 15 Minutes...
the first step is calculating Qty for each scrip,., everything can be inbuild into an excel sheet.. we don't need any kind of charts at all...
there are 2 ways to trade.....one is with a Risk-Reward of 1:2, another is trading with a risk-reward of 1:1..
let's go with option 2.
Risk per trade, assume 1 Lakhs per trade... so for Qty calculation, we use 100000/(High-Low).....irrespective of the candle size our risk is controlled at 1 lakhs..
if you calculate transaction value it will be around 30 lakhs per order....100% our entry price gets filled while entering using the SL-LImit order...
No slippages at all for entry..
TGT order at Entry+ ( High-low) ...SL order at LOW of OR...
for a year, we may get around 230 * 5 trades...1150 trades...remove 150 as no entry....so for a year we have 1000 trades.
with a success rate of 70% and R:R 1:1, 700 winning trade should give is 7 cr but consider only 600 trades as clean winning trades..rest 100 trades are with a minimal profit or no profit/loss.... so 600 winning trades should give is 6 cr...
300 losing trades should give us -3 cr..so net is 3 cr........give 60 lakhs for charges and slippages ...so final NET will be 2.4 crores which is 240% percentage of 1 crore capital..
DONT JUMP for stock selection and 70% success rate Now.......
just see whether execution is possible without slippages as we trade in higher capital.....also results are measured against YEARLY performance..
cannot expect a monthly basis 20% return...
Stocks Universe (or baskets) is NSE F&O stocks only...
Out of 136 stocks, we will select 5 stocks only...
The selection of stocks should be purely system-driven, via scanner ..We will discuss a selection of stocks later stage.
Now we have 5 stocks to day trade. We trade those 5 stocks using the simple ORB method in the first 15 Minutes...
the first step is calculating Qty for each scrip,., everything can be inbuild into an excel sheet.. we don't need any kind of charts at all...
there are 2 ways to trade.....one is with a Risk-Reward of 1:2, another is trading with a risk-reward of 1:1..
let's go with option 2.
Risk per trade, assume 1 Lakhs per trade... so for Qty calculation, we use 100000/(High-Low).....irrespective of the candle size our risk is controlled at 1 lakhs..
if you calculate transaction value it will be around 30 lakhs per order....100% our entry price gets filled while entering using the SL-LImit order...
No slippages at all for entry..
TGT order at Entry+ ( High-low) ...SL order at LOW of OR...
for a year, we may get around 230 * 5 trades...1150 trades...remove 150 as no entry....so for a year we have 1000 trades.
with a success rate of 70% and R:R 1:1, 700 winning trade should give is 7 cr but consider only 600 trades as clean winning trades..rest 100 trades are with a minimal profit or no profit/loss.... so 600 winning trades should give is 6 cr...
300 losing trades should give us -3 cr..so net is 3 cr........give 60 lakhs for charges and slippages ...so final NET will be 2.4 crores which is 240% percentage of 1 crore capital..
DONT JUMP for stock selection and 70% success rate Now.......
just see whether execution is possible without slippages as we trade in higher capital.....also results are measured against YEARLY performance..
cannot expect a monthly basis 20% return...