Thursday, January 28, 2016

The other side of the Hill - Day Trading: Jan 28, Expiry Day Intraday

Today was the expiry of the January series. Took 4 trades - all losses today. This series has been good overall. I have been able to earn 402 (gross) points from 50 trades in this series. For most of the series, I followed the Range Compression Trading System on the M15 charts. In fact, I have not done any changes to this system since January 8. Trade entries are discretionary based on small M15 bars. Stops are mechanical, and are deliberately wide.

That is a kind of a record for a System Hopper. In fact, I also attempted to capture the spirit of the system in Trading System Rules. All that's only because the Trading System hasn't had a major drawdown yet. Now, that we are on the other side of the hill, things could be different.

Look at the profits per trade - it was increasing until the middle of this month, and then kept decreasing and has been negative for the last 2 days.



Profits by Trade and Cumulative Profits: Trough and Peak


The major crib about the Range Compression Trading System is the mechanical exit. Since January 8, the average intra-Trade Drawdown has been approx. 24 points per trade, including the 34 point Trade Drawdown in today's Trade 4. That means on the average, in each trade, I exited 24 points (0.30 %) away from the MFE (Maximum Favorable Excursion) of that trade.... and remember, this is an Intraday system, and 50x0.30% = 15 %  

There seems to be some problem in getting the interactive data in the Trading Stats page. For now, I have pasted a few screenshots on the Trading Stats page.


Nifty M3 Candlestick Chart


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