Trading – The Mechanical Trader

Buying the Corona Dip – 6 (Crypto Special)

My last update was on Sep-20, since then Nifty & Bank-Nifty have rocketed to 14347 & 32084. I had in my previous update said, that I wasn’t comfortable with Nifty moving up without correcting, and luckily after that post nifty went down by 700 points where I got in and deployed my full capital inContinue reading “Buying the Corona Dip – 6 (Crypto Special)”

Buying the Corona Dip -2

This is the 2nd part after I had started investing which was mentioned in my earlier post. As I earlier said that the chances of re visiting the 8555 low made at that time was high and it so happened that we did hit 7500 and I made sure I had more capital to investContinue reading “Buying the Corona Dip -2”

Trading Framework

Before getting to the development of a system we need to understand what is the main structure of trading. This structure is basic framework of how trading should work ideally. One has to keep in mind that most important part of trading is exiting or closing a trade. WHY? Because EXITS are what makes money,Continue reading “Trading Framework”

Types Of System

There are basically 4 types of System in use. 1. MEAN REVERSION A mean reversion system, works under the assumption that the current trend is strong and the price at present is deviating away from the mean price (average) and in the given period of the time the prices will revert to its mean. TheContinue reading “Types Of System”

All You Need To Know About Stock Trading Systems (Part-2)

PART – 2 Continuing with the previous post (PART – 1), few more things to keep in mind about the systems are as follows: 6. Position Sizing This in fact is one of the most crucial element of the system designing process. Without the right position sizing the risk cannot be controlled and you cannotContinue reading “All You Need To Know About Stock Trading Systems (Part-2)”

All You Need To Know About Stock Trading Systems (Part-1)

PART-1 The following points are to be kept in mind before we go on to approach developing a system: The Mathematical approach Systems usually are made with the help of Maths and Statistics. There are few things we need to know about it. Trading Edge = (Win% * Avg Win Size) – (Loss% * AvgContinue reading “All You Need To Know About Stock Trading Systems (Part-1)”

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