Audio/Video response to a set of questions i received in a private facebook group
Here is the A/V link:
Audio/Video response to a set of questions i received in a private facebook group
Here is the A/V link:
Started Nifty intraday paid service on July 9th 2018
My belief lies in Price action based/mechanical trading and we risk around 2% per trade. All trades are intraday and we trade only Nifty futures. I always believed consistency is the key in making it in markets and being consistent in any activity (let alone trading) is not a one-day/week/month affair. It would serve us well if we view it as a continuous journey. We need to do structured set of things every day to bring that consistency in us.
For further details, please email email@example.com
July 9th 2018 to August 8th 2018 –-> Points made = 111 and percentage returns = 11.1%
August 9th 2018 to August 31st 2018 –-> Points made = -54 and percentage returns = -5.4%
September 01st 2018 to September 30th 2018 –-> Points made = 99 and percentage returns = 9.9%
** Highly volatile month and was standing in sidelines due to bigger stoploss (most of the days)**
October 01st 2018 to October 31st 2018 –-> Points made = 200 and percentage returns = 20%
November 01st 2018 to November 30th 2018 –-> Points made = -197 and percentage returns = -19.7%
Happy trading !!
As many of you know, i have been trading just the price (a.k.a naked trading) for the last 12 years and was receiving requests to take classes/workshop on how I do price action trading in a mechanical way(absolutely no discretion involved). Heeding to the popular request, I have decided to share the knowledge to people who are interested to learn. My goal is not only to teach you naked (no indicators) price action based trading for both positional and intraday trading but also about how to consistently make money in the markets – the A to Z of trading
Summary of Workshop details
In the first part of the Workshop, I will talk about the basic concepts in Price action based trading and combine advanced knowledge/experience to make the concept an actionable trading strategy that can be used immediately. Many of the price action based strategies are discretionary in nature but as am a rule based trader, I will be teaching you a simple rule-based strategy (for both positional and intra) that can be used as a basic building block to trade any asset class including stocks, options and futures.
In the second part of the workshop, I will round out the course by teaching you how to backtest a strategy effectively (to understand its efficacy in real trading), build a money management plan based on the parameters and Risk management plan along with trading psychology that is required to make money from the markets consistently. I will also help you learn about building a successful trading plan, whether you are a part-time trader or full-time trader.
On the whole, this one day workshop would be a complete package with a discussion about the methodology and using the method in practical real-time trading.
Who can attend
1. Anyone who wants to learn rule based (mechanical) price action based trading for both positional and intraday trading
2. Traders with little experience but do not make money (Only lose money)
3. Traders who make money but not consistently
4. Traders who make money consistently but cannot scale up in trading size
Who should not attend
1. Individuals that do not have a ‘self starter’ mentality (This workshop is designed to provide you with concept/tools that will help you in becoming a successful trader. Implementing this knowledge will be down to you. There will be no ‘spoon feeding’. This workshop will get you started in the right direction)
2. Individual who think by attending this workshop, they will become rich quickly.
3. Individuals who fear work. Attending the workshop is the EASY part. There is actually lot of work ‘after’ the workshop.
Morning Session Topics – the trading strategy
1. Why price action based trading? – They say ‘Price is the king and it precedes everything’. Is it really true?
2. Market structure – Basics
3. Rallies and declines
4. Details of structural pivot high/lows – how to mark them mechanically (to avoid subjectivity)
5. Trends – what constitutes the trend
6. Analyzing trends based on price action structural pivots
7. Positional mechanical strategy with multiple set of mechanical (rule-based) entry/exit rules. Participants can choose the best set of rules based on their psychological comfort level
8. Intraday strategy with multiple set of mechanical (rule-based) exit/entry rules. Participants can choose the best set of rules based on their psychological comfort level
9. Useful price action tips and tricks to extract more juice from the markets
Afternoon Session Topics – executing the strategy to trade profitably (albeit consistently)
1. What is an ‘edge’ in a system? How to quantify an ‘edge’? Do I really have an edge in my system?
2. How to efficiently backtest a strategy – what to look for and pitfalls?
3. How to evaluate backtesting results to find the optimal risk to be taken per trade?
4. Why taking 2% risk per trade will not work for everyone (like the way it is suggested in popular books)?
4. Money management in trading – how to tailor made money management based on the backtested results?
5. Trading journal and its importance
6. The real holy grail of trading – Execution
7. Part time trading vs Full time trading – Differences and their effect on our P/L
8. Role of psychology in trading – will be covering the below mentioned points in psychology
a) How to create a consistent equity curve so you can get off the roller-coaster ride and sleep at night.
b) How to dramatically ‘level up’ your consistency and escape the ‘Sneaky Mental Trap’ that sabotages your profitability when things get ‘too good’
c) The little-understood way to handle fear that separates successful traders from those who are doomed to fail (Finally, operate at your true potential!)
d) How to become a better trader by becoming a better version of yourself (and why market conditions have very little to do with your results)
e) How to know if your mind is tricking you into taking lame trades with low profit potential and holding you back from the results you truly desire
Capital required (approximate)
1 lac/ lot for Intraday trading
2 lacs/lot for Positional trading (this can change based on the price of the instrument you are trading)
Fees, timings and location
Fees : Rs. 12000/person (Inclusive of Morning Tea/Snacks, Lunch (Veg & Non- Veg buffet), Evening Tea/Snacks)
Timings : 9 AM – 6 PM
Chennai date and location:
Date: January 5, 2019
Location: Quality Inn Airport, Next to BMW Showroom, Meenambakkam, Chennai
Mumbai date and location:
Date: February 16, 2019
Location: The Mirador, Andheri East, Mumbai
If you want to be part of the workshop and need further details on payment, please email firstname.lastname@example.org or Whatsapp 96770 36689
Participants feedback of Workshops
(please click on the Date/time link below to goto the specific tweet)
Met around 20 sensible/vibrant group of folks in Bangalore for my 1st ever Price actionsystem trading workshop and humbled to receive great response from from the participants all over.
Thanks for listening guys and hoping to interact more offline !!
— Madan (@madan_kumar) August 12, 2018
What an engaging/inquisitive set of people (around 20) in the chennai workshop.
1 repeat participant in BLR workshop, 2 repeats in chennai workshop (this is my 3rd ever workshop) and felt great to receive such an overwhelming feedback at the end 😊
Thanks for listening guys !! pic.twitter.com/YoPTcGLsQp
— Madan (@madan_kumar) August 18, 2018
Brilliant group of folks in Mumbai workshop yesterday. Thoroughly enjoyed interacting with them and humbled to have participants even from other states. Thanks for your love – appreciate it.
Thanks for coming/listening and hope to see you move on in your trading journey !! pic.twitter.com/TxSiYPuPLw
— Madan (@madan_kumar) September 30, 2018
Awesome day with bunch of folks in Pune workshop yesterday. Great interactive session and ppl were bombarding with logical queries…Wonderful, it was 😊
Words are powerless to express my gratitude for listening to my ramblings patiently. pic.twitter.com/K8fxiJcUae
— Madan (@madan_kumar) October 7, 2018
Fantastic workshop in Hyderabad (my second home) couple of days ago – energetic bunch of traders asking questions and never let me finish any session on-time 😀😀
Traders came from various states – thanks for listening guys and hoping to interact more in the future !! pic.twitter.com/G25B51SFI7
— Madan (@madan_kumar) October 15, 2018
Additional Perks of attending the workshop
1. Telegram support group for the attendees (1 month duration) to clear out workshop related doubts.
2. My favorite PDF books on Money management, psychology and much more.
3. Psychocybernetics – my favorite NLP technique audio CD will be shared with the attendees
Happy trading and looking forward to meeting you in-person !!
Audio/Video response to the tweet posted on April 26th 2018
Planning to do Q&A blogpost.
Pls post your q's as reply in this tweet. Will consolidate all the replies and will do a blogpost/or create an audio with answers.
If i create an audio, it will be uploaded in the blog.
Shoot anything related to trading and will try to answer. pic.twitter.com/NpmuhIw4vk
— Madan (@madan_kumar) April 26, 2018
Here is the A/V link:
I started this activity to show how we can take a small account to a decent sized account on Feb 5 2018 and we followed fixed position sizing (4 lots) and skipped trades with stoplosses bigger than 20-22 points.
When I traded this system live and took 6lacs to 19 lacs in flat 8 months on compounding, I took all the trades and if SL was bigger than the intended risk, then I would reduce the position size to bring the risk down to the desired level.
On February 19th 2018, I tweeted about reduced position sizing for bigger stoplosses but received several DMs denouncing that idea as few folks are trading with only 1 lot (even though my money management plan clearly stated that we should start with 4 lots). Their contention was that they do not have a way to trade with reduced position size. I thought about it and estimated that we will never come this far w.r.t drawdown (even if we skip bigger SL trades). So, thought to myself that I would stick with the ‘SL too high and so, skip the trade’ logic. Boy, I was so wrong. Big mistake and we are paying the price for that blunder.
Here is the above-mentioned tweet –
Two schools of thought process –
1. trade comes under the plan – adjust size accordingly
2. trade comes under the plan – SL too high,skip the trade
Am a big proponent of the 1st idea…but, it might not suit everyone here..so, wanted to keep it simple (sticking with 2 now) https://t.co/bDZ2yfZ0rA
— Madan (@madan_kumar) February 19, 2018
Just to a give a glimpse of the reduced position size trades and its effect on our net P/L so far. All the big SL trades were profitable trades and that has just increased the mental agony !!
February 2018 – Big SL trades
1. Feb 19 2018 –> Short 10412 (9:50 am) SL = 10451 (39 points) – we should have gone short with 50% position size (to keep the risk percentage constant).Exit at break of 10338 pivot – 74 points profit (for 100% position size). So, with 50% position size, we should have made 35 points profit (after cost on full size).
2. Feb 23 2018 –> Long 10451 (10:30 am) SL = 10418 (33 points) – we should have gone long with 75% position size. Exit at 3:15 pm low 10498 – 47 points profit (full 100% size). Hence, with 75% position size, we should have made 33 points(after cost on full size)
Overall, we missed 2 trades in the month of February because of bigger stoploss. Hence, if we had followed reduced position size logic (the idea is not to miss system trades if SL is big), February 2018 should have been -23(twitter trades points) + 35 + 33 = 45 points.
March 2018 – Big SL trades
1. March 6 2018 –> Short 10375 (2:15 pm) SL = 10406 (31 points) – we should have gone short with 75% position size. Exit at 10260 (3:10 pm bar high) – 115 points profit (for 100% size). Hence with 75% position size, we should have made 84 points (after cost on full size)
2. March 16 2018 –> Short 10315 (11 am) SL = 10345 (30 points) – we should have gone short with 75% position size. Exit at 10224 (3:10 pm bar high) – 91 points profit (for 100% size). Hence with 75% position size, we should have made 66 points (after cost on full size)
3. March 19 2018 –> Short 10181 (10:05 am) SL = 10220 (39 points) – we should have gone short with 50% position size. Exit at 10155 (3 pm bar high) – 26 points profit (for 100% size). Hence with 50% position size, we should have made 11 points (after cost on full size)
Essentially, we missed 3 trades because of bigger stoploss. So, if we had followed reduced position size, March 2018 should have been -104 (twitter trades points) + 84 + 66 + 11 = 57 points.
With this information in hand, it is obvious to see that we should have been up by 102 points in the system(had we taken all the trades with reduced position size) but rather we were down by 127 points at the end of March 2018. A difference of 229 points.
Reduced position size if Stoploss is big
Bygones are bygones. In the first post of this blog, I enunciated how we will deal with this activity and the money required for each lot. Here is the post.
If we refer to point # 7, it states that “If we look at the Money Management plan that I posted, We have used 40K (including 200 points DD) for 1 lot but are using 50k per lot. We will keep 10k as a buffer amount incase of contingencies. We will invoke the buffer amount if we see unforeseen circumstances.” I believe the time has come to invoke the 10k buffer as we are at 190 points drawdown as of yesterday close.
So, we still have room for 130 more points of drawdown (based on the buffer) and given the fact that the system is faring decently, I think it is time to invoke this buffer amount. So, we will keep continuing the activity (despite numerous trollings and sarcasms hurled on me) until we hit 320 points drawdown. That would be the ‘hard stop’ for the activity. I take complete responsibility for not using reduced position size from February 19th tweet and infact, there have been numerous instances in the past 1.5 months wherein i was advised to take reduced position size for bigger SL trades by my trader friends. Better late than never and i truly believe the error has been rectified now (for the past 2 trades).
The intention of this post is to elucidate the facts and to see how we can take this forward. Going forward, I will announce the trades as usual in Telegram but if the SL is bigger, we will take reduced position size(as deemed necessary) and 50% or 75% will be mentioned promptly in the message.
Happy trading and have a great weekend ahead !!