hi every one,
its peeyush i joined Traderji.com a week ago, prior to it i was reading Traderji.com via Google and other search engines.
this will be my first communication to everyone hear.
first of all congratulations to everyone for being a part of such result oriented and no nonsense approach group.
i trade commodities on day trading bases from last 2 years. (whenever i do trading).
now i am planing to take it as a living . i am considering this option from last 7 months and i am working on it.
after 7 months i believe i have specific problems which will have a specific and sizable approach and solutions.
i have not left my job till now but i have made a target of leaving the job after accomplishing of following tasks.
(1) proper resources-
(i) it includes a well working computer.- done (i have 1 desktop and 1 laptop in good working condition.)
(ii) uninterrupted internet and power supply contention.-done
(iii) a good broker. kind of done (current broker gives me acceptable services on charges of 1k brokerage+ exchange expenses + government taxes which means around 1750rs per crore in total.
i am in talks with another broker who is offering me brokerage of 300rs + exchange expenses + government taxes which will come around only 750rs in total) a very lucrative offer but need to check his services first.
(iv) a properly funded trading account from market generated money- done ( thanks to silver running from 47000 to 57000 in recent times.)
(v) a charting software - done and nonnegotiable now
but i believe i did not made the best choice, i became little emotional about it as they were offering me a human support for longer period of time.
Reliable software falcon 7 (i am taking name not at all for publicity purposes i am telling it because i need some help from forum members and somebody who will be helping me should know what i have with me and what are my perimeters.)
(vi) arrangement of 6 month running expenses- done (saved it from my salary)
(2) proper trading plan-
i have not finished it yet and i need help and suggestions from you people on each or some points.
i will go point by point to my approach, few points on which i have decided or i believe that i have decided i will write done with the reasons.
suggestions are welcome on that also.
My financial goal (i) to achieve my current cost to company salary in a year.
(ii) to achieve my 6 month salary in 6 months.
(iii) to start achieving my weekly withdrawals equivalent to current salary divided by 4 after 3 months .(which i wont spend and i will virtually add them in my trading capital to reduce or increase my risk appetite on per trade bases.)
(v) any thing above to yearly target will be my bonus 30% i will put in my non trading capital and 70% i will spend and enjoy.
my account size- 1.2L
My risk appetite - loss of 6000 rs per trade on maximum side (nonnegotiable on higher end )
selecting a market -- total 20 commodities from mcx and ncdx- done and nonnegotiable on higher end.
i will trade the following time frames---- 10, 15 and 30min. time frame.
15 min time frame to place the order and 10 and 30 min. to recheck the entry and exit points.
My trading approach will be ------ technical -done and nonnegotiable.
i will neither do trading on fundamental approach and nor on statistical approach.
so on technical approach i will look for 2 trading styles
(i) trend following style
(ii) trend fading style
2 trading styles means at least 2 trading systems of totally different nature so initially i am going to avoid trend fading approach.
i will try to develop it in those 6 months when i will do only trading.
now i am left with only trend following style but i would like to have at- least 3 trading systems to compare them and select 1 out of them.
kind of charts i will use ---- (i) candlestick (ii) nicolellis range bars
nicolellis range bars are very good concept they have removed time from the charts and they introduce volatility in place of it. a very good and helpful concept for a full-time day trader because if you will combine it with moving averages it remove the lagging part to a great extend(i do not know i am right or wrong plz tell) , but this charting felicity is available in a software package of 2.9 L per year so no to nicolellis range bars.
now my chart type will be----- 15, 10 and 30 min. candlestick patterns
my indicators will be --------- ????????????(in this section i have my doubts on which i expect to be helped out! )
i am going to use 4 or 5 indicators initially in my virtual trades and in the end i am going to settle it down with 3 indicators for my real trades.(please tell me that this a right approach or a wrong one)
my final indicator setup will be something like this
indicator 1- primary indicator or signal generator .
indicator 2- secondary indicator- conformer indicator else why or why-not indicator.
indicator 3-tertiary indicator- supportive indicator to secondary indicator.
for example- if yes then why and to what degree if no then why not and till which level not.
i am going to use trend line and trend channels for sure- done even in the real money trades .
i will not consider it in the in the set of 4-5 indicators which i am going to try virtual money trading.
before going to post my problems i would like to clear my perimeters of the knowledge regarding indicators
indicators are of 2 types
(i) trend following indicators
(ii) trend fading indicators or oscillators
agreed but their are articles on internet which tells you that if you change reading of few oscillators they will work like trend following indicators is it true or not?
practically possible or not for Indian commodity markets?
if yes then what will be the settings for them in terms of Indian commodity
market?
if we change the biases of characteristics
they can be divided the indicators in 3 categories
(i) price based
(ii) volatility based
(iii) volume based
how they are helpful in day trading Indian commodity markets ?
what will the combination if i want to try them out in set 4-5 indicators ?
on which category i should emphasis more price, volatility or volume based indicators considering i am going to day trade in Indian commodity market?
what should be the settings for them.?
my software provider has divided it in following category
(i) Averages Based
(ii) Band
(iii)Directional Movement
(iv)Oscillator
(v)Market Breadth(not much of a use for me because my watch-list is done)
(vi)OBOS(not much of a use for me because my watch-list is done)
now how this bifurcation is going to help me ?
and 1 big question regarding indicators----
does specific set of indicators give better results for a particular commodity?
if yes then what set of indicators and with what readings specifically for that commodity in Indian comm. markets conditions?
those were my question regarding indicators ,their sets and relevance with our market.
i hope this forum will help me on above mention issues.
now lets move to my trading plan---
Entry signal-- not defined because of uncertainty regarding indicators.
(i) long entry signal (ii) short entry signal
Exit signal-- not defined because of uncertainty regarding indicators and unavailability of entry signals.
(i) profit target (ii) stop loss
other rules--- (i) i am going to emphasize my trading system more on exits and less on entries oriented process." nobody ever lost money taking profits"
(ii) i am going to put my money management stop loss first and technical stop loss behind. it means if my money management stop-loss is of 6000 then my technical stop loss should be less then 5999 including the expenses and taxes only then i will take that trade otherwise i am going to avoid that signal.
(iii) consistent profits are much better then sudden big ones because you can not make a living on sudden profits so only after the profit of 60000 i will start trading multi lots.
(iv) maximum loss of 5 % of the current capital in 1 day .
(v) maximum 2 orders at a time .
back testing expectations----- not done because of unfinished trading systom.
minimum back-testing size will be 200 trades.
testing will be done
on the platform of software provider.
will look for the systems which generates consistence money rather then more money.
money management------
currently doing with a help of a excel sheet but my problem is i am not able to connect this sheet with the exchange data.
so that sheet do not show you the current condition of your trade.
one suggestion on money management---------------
i read a book of van k tharp "van tharp - developing a winning trading system"
a very good one(though i have not read too many books on trading so that i can compare).
best part is he encourage you to develop your trading system on your own rather then trying to sell a software.
he gives you mathematical formulas only if any body is able to convert them in excel sheet for our market plz do let me know. (i become lame when it comes to programing or formulation of sheets ).
strengths which i will bring to my system are following.
(i) being less emotional regarding my own decisions.
(ii) capacity to trade 2 como. at the same time.
(iii) i will provide myself and my system best trading condition because of reserves i have made before trading.
(iv) i am going to emphasis more on money management rather then trading opportunities while trading.
weakness i will bring in my trading system are following.
(i) i am aggressive in my approach with respect of my capital because of heavy lot sizes in commodity market. (for this i will put more emphasis on mildly volatile commodity like Melantha oil and copper instead off gold and silver )
(ii) i am bad with technical part for example i know nothing about programing and formulation of excel sheets. ( can not do much about it 28 years old and still did not get it so not much scope is left.i am not even planing at all to learn those heavy computer programs to do trading .
maximum i will do is i will not start trading with real money unless and until i am very sure that i got all i needed as far as technical part is concern).
(iii) i am new to my software - this i have to learn because it very important for the success of my trading plan so from now onwards i will spend 3 hours every day practicing my trading software (i even choose it because it does not requiters to learn any computer program)
so friends this is the current position of my trading plan.
i have tried to explain my efficiency and my weakness as truthfully as i can.
if anybody want to make any suggestions that will be a great help and i am very open to it.
sorry for being blunt on some points..... but i have learned that whatever you have helps you more in trading rather then what do not have.
i am new to posing threads to this forum if i have violated any policy of this forum i am sorry in advance please do let me know, i will make sure that it would not happen again.
in hope of lots of suggestions !!!!!!!!!!!!!!!
peeyush
its peeyush i joined Traderji.com a week ago, prior to it i was reading Traderji.com via Google and other search engines.
this will be my first communication to everyone hear.
first of all congratulations to everyone for being a part of such result oriented and no nonsense approach group.
i trade commodities on day trading bases from last 2 years. (whenever i do trading).
now i am planing to take it as a living . i am considering this option from last 7 months and i am working on it.
after 7 months i believe i have specific problems which will have a specific and sizable approach and solutions.
i have not left my job till now but i have made a target of leaving the job after accomplishing of following tasks.
(1) proper resources-
(i) it includes a well working computer.- done (i have 1 desktop and 1 laptop in good working condition.)
(ii) uninterrupted internet and power supply contention.-done
(iii) a good broker. kind of done (current broker gives me acceptable services on charges of 1k brokerage+ exchange expenses + government taxes which means around 1750rs per crore in total.
i am in talks with another broker who is offering me brokerage of 300rs + exchange expenses + government taxes which will come around only 750rs in total) a very lucrative offer but need to check his services first.
(iv) a properly funded trading account from market generated money- done ( thanks to silver running from 47000 to 57000 in recent times.)
(v) a charting software - done and nonnegotiable now
but i believe i did not made the best choice, i became little emotional about it as they were offering me a human support for longer period of time.
Reliable software falcon 7 (i am taking name not at all for publicity purposes i am telling it because i need some help from forum members and somebody who will be helping me should know what i have with me and what are my perimeters.)
(vi) arrangement of 6 month running expenses- done (saved it from my salary)
(2) proper trading plan-
i have not finished it yet and i need help and suggestions from you people on each or some points.
i will go point by point to my approach, few points on which i have decided or i believe that i have decided i will write done with the reasons.
suggestions are welcome on that also.
My financial goal (i) to achieve my current cost to company salary in a year.
(ii) to achieve my 6 month salary in 6 months.
(iii) to start achieving my weekly withdrawals equivalent to current salary divided by 4 after 3 months .(which i wont spend and i will virtually add them in my trading capital to reduce or increase my risk appetite on per trade bases.)
(v) any thing above to yearly target will be my bonus 30% i will put in my non trading capital and 70% i will spend and enjoy.
my account size- 1.2L
My risk appetite - loss of 6000 rs per trade on maximum side (nonnegotiable on higher end )
selecting a market -- total 20 commodities from mcx and ncdx- done and nonnegotiable on higher end.
i will trade the following time frames---- 10, 15 and 30min. time frame.
15 min time frame to place the order and 10 and 30 min. to recheck the entry and exit points.
My trading approach will be ------ technical -done and nonnegotiable.
i will neither do trading on fundamental approach and nor on statistical approach.
so on technical approach i will look for 2 trading styles
(i) trend following style
(ii) trend fading style
2 trading styles means at least 2 trading systems of totally different nature so initially i am going to avoid trend fading approach.
i will try to develop it in those 6 months when i will do only trading.
now i am left with only trend following style but i would like to have at- least 3 trading systems to compare them and select 1 out of them.
kind of charts i will use ---- (i) candlestick (ii) nicolellis range bars
nicolellis range bars are very good concept they have removed time from the charts and they introduce volatility in place of it. a very good and helpful concept for a full-time day trader because if you will combine it with moving averages it remove the lagging part to a great extend(i do not know i am right or wrong plz tell) , but this charting felicity is available in a software package of 2.9 L per year so no to nicolellis range bars.
now my chart type will be----- 15, 10 and 30 min. candlestick patterns
my indicators will be --------- ????????????(in this section i have my doubts on which i expect to be helped out! )
i am going to use 4 or 5 indicators initially in my virtual trades and in the end i am going to settle it down with 3 indicators for my real trades.(please tell me that this a right approach or a wrong one)
my final indicator setup will be something like this
indicator 1- primary indicator or signal generator .
indicator 2- secondary indicator- conformer indicator else why or why-not indicator.
indicator 3-tertiary indicator- supportive indicator to secondary indicator.
for example- if yes then why and to what degree if no then why not and till which level not.
i am going to use trend line and trend channels for sure- done even in the real money trades .
i will not consider it in the in the set of 4-5 indicators which i am going to try virtual money trading.
before going to post my problems i would like to clear my perimeters of the knowledge regarding indicators
indicators are of 2 types
(i) trend following indicators
(ii) trend fading indicators or oscillators
agreed but their are articles on internet which tells you that if you change reading of few oscillators they will work like trend following indicators is it true or not?
practically possible or not for Indian commodity markets?
if yes then what will be the settings for them in terms of Indian commodity
market?
if we change the biases of characteristics
they can be divided the indicators in 3 categories
(i) price based
(ii) volatility based
(iii) volume based
how they are helpful in day trading Indian commodity markets ?
what will the combination if i want to try them out in set 4-5 indicators ?
on which category i should emphasis more price, volatility or volume based indicators considering i am going to day trade in Indian commodity market?
what should be the settings for them.?
my software provider has divided it in following category
(i) Averages Based
(ii) Band
(iii)Directional Movement
(iv)Oscillator
(v)Market Breadth(not much of a use for me because my watch-list is done)
(vi)OBOS(not much of a use for me because my watch-list is done)
now how this bifurcation is going to help me ?
and 1 big question regarding indicators----
does specific set of indicators give better results for a particular commodity?
if yes then what set of indicators and with what readings specifically for that commodity in Indian comm. markets conditions?
those were my question regarding indicators ,their sets and relevance with our market.
i hope this forum will help me on above mention issues.
now lets move to my trading plan---
Entry signal-- not defined because of uncertainty regarding indicators.
(i) long entry signal (ii) short entry signal
Exit signal-- not defined because of uncertainty regarding indicators and unavailability of entry signals.
(i) profit target (ii) stop loss
other rules--- (i) i am going to emphasize my trading system more on exits and less on entries oriented process." nobody ever lost money taking profits"
(ii) i am going to put my money management stop loss first and technical stop loss behind. it means if my money management stop-loss is of 6000 then my technical stop loss should be less then 5999 including the expenses and taxes only then i will take that trade otherwise i am going to avoid that signal.
(iii) consistent profits are much better then sudden big ones because you can not make a living on sudden profits so only after the profit of 60000 i will start trading multi lots.
(iv) maximum loss of 5 % of the current capital in 1 day .
(v) maximum 2 orders at a time .
back testing expectations----- not done because of unfinished trading systom.
minimum back-testing size will be 200 trades.
testing will be done
on the platform of software provider.
will look for the systems which generates consistence money rather then more money.
money management------
currently doing with a help of a excel sheet but my problem is i am not able to connect this sheet with the exchange data.
so that sheet do not show you the current condition of your trade.
one suggestion on money management---------------
i read a book of van k tharp "van tharp - developing a winning trading system"
a very good one(though i have not read too many books on trading so that i can compare).
best part is he encourage you to develop your trading system on your own rather then trying to sell a software.
he gives you mathematical formulas only if any body is able to convert them in excel sheet for our market plz do let me know. (i become lame when it comes to programing or formulation of sheets ).
strengths which i will bring to my system are following.
(i) being less emotional regarding my own decisions.
(ii) capacity to trade 2 como. at the same time.
(iii) i will provide myself and my system best trading condition because of reserves i have made before trading.
(iv) i am going to emphasis more on money management rather then trading opportunities while trading.
weakness i will bring in my trading system are following.
(i) i am aggressive in my approach with respect of my capital because of heavy lot sizes in commodity market. (for this i will put more emphasis on mildly volatile commodity like Melantha oil and copper instead off gold and silver )
(ii) i am bad with technical part for example i know nothing about programing and formulation of excel sheets. ( can not do much about it 28 years old and still did not get it so not much scope is left.i am not even planing at all to learn those heavy computer programs to do trading .
maximum i will do is i will not start trading with real money unless and until i am very sure that i got all i needed as far as technical part is concern).
(iii) i am new to my software - this i have to learn because it very important for the success of my trading plan so from now onwards i will spend 3 hours every day practicing my trading software (i even choose it because it does not requiters to learn any computer program)
so friends this is the current position of my trading plan.
i have tried to explain my efficiency and my weakness as truthfully as i can.
if anybody want to make any suggestions that will be a great help and i am very open to it.
sorry for being blunt on some points..... but i have learned that whatever you have helps you more in trading rather then what do not have.
i am new to posing threads to this forum if i have violated any policy of this forum i am sorry in advance please do let me know, i will make sure that it would not happen again.
in hope of lots of suggestions !!!!!!!!!!!!!!!
peeyush