Today I have completed a new algo, based on mutual funds.
This is how mutual funds trade positional and generate income of about 13-21% anually.
But as I am a intraday trader so I tried to replicate its image on intraday basis and set target of 10-13% monthly.
Procedure to trade:
- At any given time, we can have open trade in at the max 3 scrips
- Scrips will be of good liquidity (FnO stocks only)
- All open positions must be squared off at 3.15pm (No carry forward)
- To start, we will trade with capital of Rs.10000
- So divide 10000 with price of stock and get no. of shares.
- As we can get exposure of 8x-10x so 3 open positions, totalling to 30000 can be easily met.
- Trading will be done on stop and reverse system.
- Like if I say buy tatasteel @ cmp 245 then buy 41 shares @ cmp
- And when I again say sell @ cmp 246 then sell 82 shares @ cmp so that we be in trade with 41 quantity.
- We'll be in trade on particular day till 1% gain or 2% loss (we cant bear more than that in single day)
- As the strategy cant be backtested so we'll start with capital of 10k and gradually increase on success.
- All trades will be on cmp and not buy below or buy above.
This thread is not for get rich traders but for small traders who want less but consistent profits.
So if atleast 10 traders are interested then I will start.
If I ever forget to mention then please remember that always:
Target = 1%
SL = 1%
of entry price.
NOT following above Rules....
Simply Buying positionally with time frame ranging from few days to few months....
Kindly ignore above 2 posts !!!