nifty based system trading1
DESCRIPTION
TRANSCRIPT
TECHNICAL BASED TRADING
STRATEGIES
DHANVIR CAPITAL CONSULTANTS LLP
There is only one side in There is only one side in stock market and it is not stock market and it is not the Bull’s side or Bear’s the Bull’s side or Bear’s
side, it is the side, it is the ‘right side’‘right side’
DHANVIR CAPITAL CONSULTANTS LLP
Jesse Livermore
SCHEME 1 – NIFTY TRADING SYSTEM (BASED ON MECHANICAL SYSTEM
TRADING)
SCHEME 2 – GOLD SYSTEM TRADING*(BASED ON MECHANICAL SYSTEM
TRADING) *COMING SOON
DHANVIR CAPITAL CONSULTANTS LLP
PRODUCTS
NIFTY TRADING SYSTEM
The product will take positions in NIFTY FUTURES (long/short) based on a technical indicators.
It is a NIFTY based Mechanical Trading System. (quant model)
Mechanical Trading Systems (MTS) are techniques that make trading decisions for a trader. Trader inputs the data, and the system generates a response that indicates the appropriate action.
Trader either buys, sells, or does nothing depending upon the pre-defined rules of the system DHANVIR CAPITAL CONSULTANTS
LLP
NIFTY TRADING SYSTEM ADVANTAGESADVANTAGES
Emotionless trading.Emotionless trading.
Provide objective rules to follow. Provide objective rules to follow.
Traders who are apt to trade on a whim, Traders who are apt to trade on a whim, or out of boredom can use MTS to avoid or out of boredom can use MTS to avoid making costly errors. making costly errors.
DHANVIR CAPITAL CONSULTANTS LLP
NIFTY TRADING SYSTEM DISADVANTAGESDISADVANTAGES
Can suffer long periods of drawdown.Can suffer long periods of drawdown.
Very dull to tradeVery dull to trade
Low win rate, inefficiency, failure to respond Low win rate, inefficiency, failure to respond to market paradigm shiftsto market paradigm shifts..
DHANVIR CAPITAL CONSULTANTS LLP
NIFTY TRADING SYSTEMTotal Risk we shall undertake shall not be
more than 10% of the total portfolio value.
Predefined risk parameters for each position
Risk shall not exceed 2.5% of the portfolio on a per position basis.
DHANVIR CAPITAL CONSULTANTS LLP
NIFTY TRADING SYSTEMAssuming a initial portfolio with Rs 5 lacs as
capital:Risk per position would be Rs 5lacs * 2.5%=Rs
12,500Call: Long Nifty Futures at 4000 with S/L 3800 Quantity to be taken = 12500/ (4000-3800)i.e 12500/200 = 62.5 shares. i.e 3 mini Nifty
Total risk after 4 such positions will be 10% of the portfolio
DHANVIR CAPITAL CONSULTANTS LLP
SUMMARY INVESTED CAPITAL : Rs.5,00,000/-INVESTED CAPITAL : Rs.5,00,000/-PROFIT TILL DATE: Rs.3,14,02,296/- PROFIT TILL DATE: Rs.3,14,02,296/- ( From 2000 to ( From 2000 to
2011 )2011 )
RETURNS : 6280%.RETURNS : 6280%.NIFTY RETURN : 320%NIFTY RETURN : 320%NUMBER OF TRADES: 94NUMBER OF TRADES: 94STRIKE RATE : 36%STRIKE RATE : 36%MAXIMUM LOSING STREAK: 23.82%MAXIMUM LOSING STREAK: 23.82%MAXIMUM WINNING STREAK: 117%MAXIMUM WINNING STREAK: 117%AVERAGE EXPOSURE PER TRADE: 3.6 times AVERAGE EXPOSURE PER TRADE: 3.6 times MAXIMUM EXPOSURE TAKEN: 5 times of MAXIMUM EXPOSURE TAKEN: 5 times of
portfolioportfolioDHANVIR CAPITAL CONSULTANTS
LLP
HISTORICAL YEARLY RETURNS
DHANVIR CAPITAL CONSULTANTS LLP
The system generated an annualized compounding return of 28.12 %
HISTORICAL RETURN COMPARSIONCapital Rupees
Initial Capital 500,000
Addition or withdrawls 0
P/L 15551512
Invested Capital 0
Balance Capital 16051512
DHANVIR CAPITAL CONSULTANTS LLP
Comparison Return 26-Oct-95 19-Jun-09
Portfolio 3110.30%
Nifty 408.88% 901 4585
Sensex 326.09% 3408 14521
NIFTY TRADING SYSTEMClient trades will carried out in individual
client accountsClient money will be held in client accountContract notes will be sent on a trade to
trade basisMonthly portfolio reviews shall be carried outMinimum period should be 12 monthsMinimum ticket size Rs. 5 lacs.
DHANVIR CAPITAL CONSULTANTS LLP
NIFTY TRADING SYSTEM
For more details please contact Dhanvir Capital Consultants LLP Tel no.: 022-66157630/31/32/33 Email: [email protected]: +91-9930378858/+91-9869478405
DHANVIR CAPITAL CONSULTANTS LLP