As a general rule, when RSI crosses an upper limit it indicates a Sell signal, while if it crosses lower limit it indicates Buy signal. But in this strategy, we are going to do the opposite i. All the positions would be squared off at the end of day.
Read our article on AFL tutorial here. Below is the backtest report for two different variations of this strategy. One is using fixed position size of Another is position size as a percentage of Equity.
You can clearly see that the second one outperforms the first due to Power of Compounding. Can you count Final capital for the second one? Moral of the Story: Your strategy need not to be complex and lengthy to be extremely profitable,. Download the detailed backtest report here. This strategy has a very smooth and linear equity curve with minimum drawdowns. If you find any misleading or non-reproducible content then please inform us at support tradingtuitions.
Sir I am trying to use Robo system and i tried also. This Afl gives buy order correctly and it is missing fresh Sell order. Will u please add sell command in the afl Thanks in advance. Thank you so much for sharing this non-repainting strategy. In my opinion, correct me if I am wrong, there is an error in the backtest report since you have assumed Rs 50 towards brokerage or transaction cost per leg.
Practically it is impossible to trade by just paying a total transaction fee of Rs 50 per leg for large volumes. I understand that brokerage fee a may remain fixed at or below Rs 20 regardless of the volume size. However, other exchange costs like STT, stamp duty, turnover charges, service tax, SEBI charges tend to increase with increase in volume.
So, if you consider these costs into account, the profitability of the strategy will largely decline. Most retail traders that have trading account with discount brokerage firms incur total transaction costs of 0. Hi Nasrudeen, You are absolutely right. But second backtest report is just an indicative of how much profit you can earn if you allow compounding. It may be practically impossible though considering the slippage, transaction charges and market limits for the number of lots.
In this AFL, you used spsShares this for fixed position size and spsPercentOfEquity for position size as a percent of Equity; but what if I want to create position size for a fixed amount?
For example, I will buy shares for 5 lakhs per trade. Could you please tell me what should be the AFL command? Let us know if you have any specific question regarding this AFL. Hi Karan, Trading cannot be done through performance sheet. See backtest report for trade log.
Hi Raja, SetTradeDelay is set to 1, so the position would be taken at next candle open. In the above code, it is already set by 1 bar delay, as I see in Bar-replay. SetTradeDelays 1, 1, 1, 1 ; Please let me know, what I have to change to make it as close of the candle or next candle opening for the existing code in back testing. Sir,Iam very much interested in stock market. My trading account collapsed due to follow up stock tips.
Hence,I dont know how to become an expert in stock selection,because of ultimate goal is that. So,please be help me. I am sad for your loss. This is the perfect example why we should avoid believing in tipsters. I would recommend you to subscribe to this blog and read each and every post carefully. It will help you to select stocks based on Technical analysis. You can also contact us at support tradingtuitions. Hi Sir, Is this the Intraday or positional trade , when i back test it shows me some positional trades.
Hi Sir, Is this the Intraday or positional trade , when i back test with 1 min timeframe it shows me some positional trades. HI, How can I use this code in other trading platforms such as Zerodha Pi , Is there a way we can use this strategy there? Hi Admin, Sorry if i sound like learner. Yes, your point is valid. I have backtested it both ways, and this is most profitable. Hello Admin, I am thankful for this site.
I need a small favour from you. I am requesting you to provide the backtest results for Crude oil with Supertrend indicator on 5 minute charts.
As I tested 3 months data it is given good results but I require minimum 1 year backtest results. Can you please provide it. It will be available for lot of small traders like me. Secondly Pls check am i going something wrong…. If you are a day trader or a positional trader,simply find out a AFL which gives you consistent result and enjoy earning.
That I have learned after dashing my head many times and lost money too in many cases here and there. Dear sir I am not aware of amibroker. When I give many of your strategy to develop they could not even develop a single strategy correctly.
Please let me know how I can I work on amibroker. Any vendor or any person who can help me in this regard. I also want to automate this strategy. Yes, it can be. But I would recommend to do paper trading before making it live.
Actual results can slightly differ from backtested results. I can only see color and offset is little different. Pls clatify as yo whether this has to be implied on 1 min or 5 min charts??? As you have mentioned 1 min in the strategy details whereas you refer the backtesting on 5 min TF…. Hi Admin, Please guide me would this strategy really help. My ultimate target is to earn only Rs.
I am new to this market. I could manage to put Rs. Please guide if this strategy really works, so, I could purchase AFL software. And would this be automated as you have mentioned many formulas? This is just my query. Thanks for ur reply. Dear sir, I have just opened demat account in Hdfc sec. Bought new PC and downloaded amibroker software. How should I start if I want to use intraday niffty trading statergy as you have given here.
Dear Dipak, Lack of trading experience can evaporate ones tradung capital. There are good trading strategies that work very well, but only in the long run you be able to make income consistently.
All strategies suffer drawdown which is very hard to stomach for most traders. So stay away from trading activities. My sincere advice is to invest money in well managed mutual funds for short term benefits and begin SIP for long term wealth creation.
And to save costs on brokerage you make have a brokerage account with discount brokers like Zerodha whose service is excellent and zero beokerage for delivery based equity transactions.
We appreciate your advice but do not completely agree to it. Trading Tuitions aims to enable and educate people on profitable trading concepts. Even retail traders with low capital can do wonders if they are disciplined and follow risk management. Technology has brought everything at our finger tips, it depends on us how we use it.
Lastly, we do not promote advertising the tips providing service, so your comment has been edited. The work of Trading Tuitions is astounding, it is unquestionable.
But, no one can deny the fact that there is a fundamental difference between a drawdown in trading strategies and well-managed mutual funds. A matured mutual fund investor would view drawdowns as an opportunity in the event of a systemic risk.
While a matured trader would begin to doubt and try to tweak his strategy which would mostly be more harm than good. In my opinion, any trading strategy is highly risky for retail traders who has minimum capital. A wild blow can not only cause capital erosion but also cause deeper psychological dent.More...