Tuesday, January 19, 2016

Boring Profits - Day Trading: Jan 19, Intraday

This is getting dull, boring, uninteresting... It's been 7 trading days since I had a losing day. It's boring to trail SL slowly. I work in the exciting world of day trading, not in some dull office. I deserve more excitement than this!! Check out my live tweets on the left pane of the web page. I only get to update my Stop Loss, and that's it.

The current trading system - the Range Compression Trading System* - is performing remarkably better than my (loser's) psychology. While defining the system rules for this system, I only had one motto:

Say NO to small profits, Say NO to big losses.

So, initially, I do not get to move my Initial Stop Loss for a long time, because I do not want to move it into a position that may potentially result in only a small profit. Better to have the price comeback and challenge me at my Initial Stop Loss. That way the market is chasing me, instead of the usual other way round. This way I get to avoid multiple entries chasing the market. Also, I ensure that I have sufficient buffer before I make the first update to the SL, to avoid premature exits. So, it's a long wait until I get to move my SL to lock some profit........ consistent with the motto for the Range Compression Trading System.

After that, the System Rules don't care. The motto only tells me to reject small profits... it does not tell me to lock the biggest profit. So, I have some snail trailing rules, that drag the Stop Loss slowly. Usually, if the Stop hits, I give up a lot of points that had been in my MTM. But I don't care. I don't want to give up my boredom just yet... I'll wait until the losses kick in, to change the system.

Did I complain too soon about the Trading System :eek:

 *Range Compression Trading System - Ugh!! Need a better name for this system... Suggestions please.

Nifty M3 Candlestick Chart

Trading Stats

I began trading the Range Compression Trading System on Jan 6. At that point, the Stop Loss trailing was more aggressive than at present - as can be seen in the charts of Jan 6 and Jan 7. On Jan 8, I modified the Stop Loss placement and trailing rules to make it slower. I see a remarkable change in the Trading results since then. I have marked these dates in the graph below.

Profits of the Range Compression Trading System


  1. AnguBhai can you also mark your SLs on the charts because SLs are the very most important cog in your system.
    I share the same long trade but I move my initial SL to the minor pivot made after 10AM which took away my trade. Any comments on that, when do you move your TSL?

    1. Hi Shub,

      I do not want to share the Initial Stop Loss & Trailing Stop Loss logic, because it's a mechanical formula. One part of trailing the Stop Loss is the line shown in the imgur image link. I also have a few other rules, to slow down the SL trailing... but as I said, I do not want to share the rules.


  2. Replies
    1. Reason is the Range Compression/Contraction in the M15 charts... I had answered this earlier in the Trading Stats page. I am pasting the answer again below...

      I am a System Hopper and keep changing my trading rules frequently.

      Currently, I am trading a Range Compression Trading System on M15 charts. The entry rules are discretionary, so I can share them. The entry rules are - if you feel that the range of any M15 bar is narrow enough (according to your discretion), just place long and short triggers, above and below that bar. That's it :)

      The Initial Stop Loss and Trailing SL rules are mechanical, and I do not share my current mechanical trading rules. However, I can say that it is just a slow trailing method to avoid missing large moves, and to reduce the number of trades... you can really make up your own rules for that.