Comment on Mr Consistent returning incredible returns

Happy Go Lucky commented on 08 Jan 2014, 06:03 PM

Hello Madan, congrats on the great stuff and even more on replying to so many posts above. I am 20 now and have been following markets since past 6 years. Over last few months, I have developed a trading strategy for Nifty and punch in EOD numbers manually in excel sheets and take my trade based on it. As my capital is 50K and growing monthly, I trade just Options and have observed that MOST of the time if when my indicator is LONG or SHORT for 4-5 days and Nifty falls 20-25 points each day ( Total 80-100 ), I gain just 15-20 points out of options where as NF would give me those 80-100. I don’t trade in NF because even I believe that I’ll mentally need 100K for it. I also take trades on equities (CASH) based on break outs with volumes. I won the 60 day challenge (Just 5% net in 60 days) too based on both of the above despite losing 15% of my capital in 1 day when I decided to try 1 minute candle stick trading in BNF fut ( Lesson learnt ). I probably would have done much better if that day wasn’t there. Would you suggest me to stop OPTIONS? My positions can go on for 4-5 days and are SAR. Suppose my SAR is breached intraday, I still will wait for EOD to confirm it. Ofcourse, if SAR is breached and a limit it crossed, I reverse it off in intraday itself. I felt NF will expose me to more risk, options are doing good but they hardly give me any points except on days with a 50+ point move on NIFTY and when the market moves against me, Options tend to lose more points than they gain. If I trade options, I need just 10% of my capital to BUY 1 lot and the remaining funds are ideally distributed for my SHORT, MEDIUM and LONG term equity holdings. I have learnt TA by paper trading US Markets at night as I couldn’t Day Trade in Indian markets due to school. I am practically trading since past 1 year and before that it was all virtual. I feel that having a strategy with HIT rate of 40% will also be good enough as long as you can keep the RR excellent. Really looking forward to guidance by Seniors like you.
PS: I don’t have access to internet everytime as I am a CA student doing my articleship.

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