nifty based system trading1

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’


Jesse Livermore

SCHEME 1 – NIFTY TRADING SYSTEM (BASED ON MECHANICAL SYSTEM

TRADING)

SCHEME 2 – GOLD SYSTEM TRADING*(BASED ON MECHANICAL SYSTEM

TRADING) *COMING SOON


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.


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..


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.


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


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


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


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.


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


nifty based system trading1

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