Intra day trading on June 8, Monday

Junaid asks:

“can u please share about how you traded today 150+ fall. What type of signals u traded with. That would really help in understanding about how do our mentor take short positions in Intraday falling market…? ”

My Notes:

Currently, we are trading three intraday systems for Nifty futures. A system is a disciplined method of trading. Buy and sell rules are predefined, based on backtesting. All systems will close their positions by 3:30 PM. System logic includes an entry rule, a stop loss, a trailing stop, an exit rule – some or all of these rules will be active.

Today, two systems gave short signals around 10:30. Both systems went short around 4565 – nifty futures. The systems have tight stop losses. Now what follows is luck, or rather the benefits of probability. Almost immediately, futures fell by 15 points. Then, there were many attempts to rally, but prices did not cross 4570, and stops losses were not triggered.

The third system went short a bit late, around 4545. This was a trading zone. The result was that the system was pushed about inside the zone, resulting in many whipsaws.

I am giving below the trades taken by the three systems today. These are actual trades. Our trading desk as well as clients have taken these trades.

My point is: we follow our discipline. It is a matter of chance that two out of three systems were in sync with the market today. Sometimes all three or four go out of sync, sometimes all work well. We make money because we remain consistent, therefore allowing the laws of probability to work for us. The numbers on the right are the gain/loss for trading 100 Nifty futures. Note what system A14 did (this is the best performing system, but doesn’t look like that today!)