Approach
ENSURE CONSISTENCY IN STRATEGY
Our methods are designed in a manner to ensure Higher Repeatability, Larger Dependability and Better Profitability. These are all result of a systematic approach- adopted in ocean of Trading Technical’s, Philosophy and Emotional Intelligence.
DESIGN ALGORITHM
Achieve Repeatability
DEPLOY STRATEGY
Bring Consistency
TAKE PROFITS
Increase Profitability
ALGORITHM DESIGN AND VALIDATION
There are various strategies in Technical Analysis which works best under different scenario. We start with using various parameters such as SMA, EMA, DEMA, HMA, MACD, Stochastic, Volume, Fibonacci, Pivot, RSI etc. Selecting a limited set of indicators is only 33% done- we need to suitably modify various settings of these parameters and the timeframe which varies from 15 min, 2 Hours, 1 Day, and 1 Week. This process helps arrive at a combination which works best both for my- Logical and Emotional capacity. Once a suitable match is arrived at- the strategy is back-tested and learning’s are incorporated into the algorithm to ensure- we are suitably timed for the entry in the stock market. There are different algorithms suiting to the requirement under portfolio management. Certain are long term and few are short term.
Algorithms approach is important as it helps ensure consistency in the strategy towards stock market. It is designed with backtesting done on over 500+ instance- each instance checked for Entry- Target- Stop Loss. Once an algorithm delivers over 70% probability, it brings reasonable confidence in dependability for future given it works only when there are right conditions. The number of stocks coming out of algorithm varies whether it’s a Bull, Horizontal, or a Bear market.
STRATEGY DEPLOYMENT AND MONITORING
Once the algorithm is proven for efficiency- it is further enhanced with Chart Patterns, Gann Setup, Fibonacci Setup and Candlesticks. These acts as a second level filter and further improve the success probability of the trades. Now the trade is taken- each trade with a fixed set of capital- no preference is given to any particular setup and fixed approach is followed. When the entry signal is generated- a trade is taken with providing the Target and Stop loss at the same time itself. None of my trades are without stoploss and none goes without a target.
PROFIT TAKING AND REFINEMENT
Once a trade is taken- it is monitored on two fronts. First on the movement towards the Target and Second on the aging of the investment from the date trade taken. Profit taking happens via pyramiding method or Candlestick patterns near Support/Resistance or crossover of certain moving averages. Further the aging of investment is checked and if 30+ days has already passed- it is exited at the next best availability of opportunity.
With the same approach getting deployed over and over again- under various emotion sentiments of NIFTY and stock specific sentiments- the strategy matures over time and offers unique dependability of offering stable returns
Our next wave is towards Machine Learning for which I have already started certifications from Stanford University. These will not only take the trades to the next level on automation but also provide advantage of unsupervised learning and improve accuracy.
GENERATE CONSISTENT PROFITS WITH REPEATABLE METHODS
