Re: You Need Money Management
July August series was the bad series, specially for the nifty futures. And it is very bad in September too (till today).
Here we go, you need money management. If your account size is Rs.200,000 you must not have traded more then 2 lots of nifty (hell, 1 lot for beginners).
If you lost 600 points then also your total loss was Rs.60,000 (Rs.30,000 for beginners) and you still have Rs.140,000 and are still in trade. You will definitely earn rs.60,000 back in next 60 days but since you had no money management your account is tossed and you are out of trade.
If you back test mechanical trading, (approx levels, you can have your own levels).....
2004 nifty gave 700 points returns (nifty 1800 level)
2005 nifty gave 800 points returns (nifty 2800 level)
2006 nifty gave -100 points return (nifty 3900 level)
2007 nifty gave 2000 points return (nifty 6000 level)
2008 nifty has given 1200 point return (approx) (nifty 4400 level)
As, you can see in 2006 nifty gave NO return due to choppy market (swing trades all around), so you should be patience and prepared to down by 40% of your total capital.
Hello friends
Nobody is replying to the question about maximum drawdown given by the system.
On page no 94 i.e. on 29th July 2008. Profit of the system was 2248.
Todays profit is 1684
2248 1684 = 564
Since 29th July system has lost 564 + brokerage & other expenses.
One should be prepared for similar loss in future
Nobody is replying to the question about maximum drawdown given by the system.
On page no 94 i.e. on 29th July 2008. Profit of the system was 2248.
Todays profit is 1684
2248 1684 = 564
Since 29th July system has lost 564 + brokerage & other expenses.
One should be prepared for similar loss in future
July August series was the bad series, specially for the nifty futures. And it is very bad in September too (till today).
A trader who started trading as per the system, since 29th July has lost around 600 points i.e. a trader who started trading this system, since 29th July has lost his 100% trading capital.
If you lost 600 points then also your total loss was Rs.60,000 (Rs.30,000 for beginners) and you still have Rs.140,000 and are still in trade. You will definitely earn rs.60,000 back in next 60 days but since you had no money management your account is tossed and you are out of trade.
If you back test mechanical trading, (approx levels, you can have your own levels).....
2004 nifty gave 700 points returns (nifty 1800 level)
2005 nifty gave 800 points returns (nifty 2800 level)
2006 nifty gave -100 points return (nifty 3900 level)
2007 nifty gave 2000 points return (nifty 6000 level)
2008 nifty has given 1200 point return (approx) (nifty 4400 level)
As, you can see in 2006 nifty gave NO return due to choppy market (swing trades all around), so you should be patience and prepared to down by 40% of your total capital.