When I started the first episode of this series somewhere deep inside I knew this would help me and this is the best for me right now. And here I am ,in the 9th episode .Will always be thankful to you Tanmay Bro.
One thing that is not explained (I believe) is how much money is invested in each trade? How that amount is decided? For example if you have 1 lac capital and the number of stock hitting 52 weeks high is 12 then how are you going to divide that money in those trade? Are you going to leave certain trades if there is no money left as you might have allocated all the money to earlier trades
In each trade you invest 5000₹ as no of positions is 20. So if there are 12 stocks satisfying the condition we just invest 60000₹. After holding 20 stocks if there is a 21st stock (satisfying the condition) we will leave it. But I think it is very rare to find the 21st stock.
@@prasannagramopadhye4506that is correct when the system starts but as the capital grows,so does the amount that can be invested in each stock. So I think it should actually be somewhere around current portfolio value/20. That's how you can get compounded returns, otherwise they'd be smaller and you wouldn't get average profitable trade giving 20000 rs
@@fantasticvarun96 can you pleasse explain how to pool in our profits into system into that 20 trades? it will be highly appriciated and how can be our booked profit be put in
@@fantasticvarun96 Hi, what if no stock gets sold in the next 6 months and we practically can't add any new stock as our capital is exhausted. What shall we do then, shall we just wait untill of the stocks gets sold?
Kudos for the wonderful content. But I guess the correct way to backtest is to have a dynamic top 100 NSE stocks that keep changing starting from 20 years back. Choosing the stocks which are currently (20 yrs later) top 100 definitely means they have performed very well as of today.
Need clarification on few doubts: 1. Do we need to invest 1L in every trade or one time investment of 1L will work for this algorithm to fetch the same results? 2. If i have taken a trade then my whole money will be blocked for the time being,then, for any new trade do i need to invest another 1L ? Doesn't it increases the initial capital in that case? 3. As per the charts shown, 24 times were losses in a row, don't we lose the entire capital in that period?
Dude as much as I like this series it just feels waste of time because no details are given on any point. I understand that teaching coding is not viable but atleast should have explained in more detail. As you said there's no clarity. Feels just like a promo for learn app
for the second doubt, i think the system just invested whatever the money there was in a particular and it was in there till it reached SL or max profit and if it that period a new company did hit a 52 week high it did not invest in it as it had all its capital already allocated and for the third doubt, the time when the losses happen is also significant if it happened after the third year it wont matter that much, also the amount of money lost is important if say each loss is 0.1% compared to the last month, it wont lose all your capital
Question on the back test Prateek performed: The selection of stocks was based off 52 week high and NSE 100 list. The NSE 100 list will change over time so did you backtest for current NSE100 list or NSE100 at every specific timestamp?
Yeah even i had that doubt, i think it is time specific..because there maybe NSE100 companies that were not part of NSE100 in 2000. One more doubt i had is why did MCDOWEL exit at 30% loss..it could have hit the 10 week trailing stop loss right?
Great series Thanks for the knowledge 😊 Have two queries? 1. Is it just the capital of one lakh was reinvested or the entire amount that was realised YoY was invested to attain 47+ lakhs at the end? 2. Is there any option to place TSL in any of the stock trading app? Was it just done for backtesting ?
With each episode, my love towards you keep increasing tanmay. well said in the channel name, from watching you giving honest comedy series to honest trading lessons, it just feels good to have such a person online, as a creator whom we can trust and who seems to be a person among us only..just making everyone's life better. Great work man.
Hi tanmay and the learnapp team, I have noticed something which looks like a flaw in the system, that is - 1. In the mcdowells trade example where we lost 30% there the 10w-low was not 30% loss rather it was less loss in comparison. It looks like TSL isn't placed according to the 10w low, thus the initial TSL is hit. 2. In the similar scanario of the trade of hdfc there we had placed 30% stoploss in the initial entry but later changed the stoploss to 10w-low, here it seems the stoploss is changed after initial entry but in the first trade it's not. So, I'm not sure of the methodology here to change the stoploss, both the examples had similar trades, we bought and the company started giving negative returns, in one case we've kept the initial stoploss, and in another one we've changed it to 10w-low, so can you please explain this? And, moreover, in the trading real term, when can i use the TSL is loss making transactions, I'm understanding it that when we're in profits we want to secure the profits upto 10w-low range, but what happens if the stocks become negative after purchasing, should we keep the stoploss at 30% when it's lossy or should we trail that with 10w-low as well? As, both of the lossy trade examples follow different things as I've already checked. I think many people haven't noticed this thing, but this is a crucial one, can you please get back to this? Thanks anyway, for creating this great content for free🙂
I developed my own swing trading system. But it doesn’t generate big chunk of profit. Thanks for the system explained. Mainly the RULES. It made me believe to be in the trade despite facing 12-15 losses in a row (provided system was followed successfully). Kudos to Tammany Bhai and Prateek Bhai
Tanmay and prateek thank you very much. I think this was by far the best episode. This series has taught so much I can't even imagine how smooth the teaching process was. Absolutely amazing. Thank you very much
So based on the system, if you have multiple stocks satisfying the trading system's criteria at once, then how do you do the asset allocation? or do you choose to trade only one of those stocks with the entire amount?
Quick question about Capital management here Say I have 1lac starting point. How much of it went into the first trade in the system? If all of it is locked in trades, how do you take more trades? Did the principal keep increasing here?
This is the same thing i was wondering, they showed a trade in which the system entered and the trade is still on so if the system is putting all the money in one trade at a time then it couldn't have entered any other stock till now.
Had a similar doubt. I guess we will be fine if we add around 5-10% of our principal amt on one stock. And since they said they want around 20 stocks in their portfolio, they must have kept 5% for one company. The amt invested on the next company would increase based on the profit/loss, keeping the weightage same (5%)
@@suryanshpanotra4606 no the point is nos pos is 20 so say if on your first week you see 20 companies each hitting their individual 52 week high then you invest 5000/- in each of them and if there is a 21st company you ignore it, now the system just invested that 5000/- and stopped until it reached either a 60% profit or the TSL OR SL, and thats when it quit and reinvested the money in some other stock, its the first 5000/- in each stock that grew individually to give the net profit of 47 lacs
Hey man, quite an interesting series!! Loved it! But what I couldn't stop myself from thinking is that , given the processing power available to us these days, why can't we hardcode a system that gives us variables or rules for that matter, which woud've given us the maximum profits? Coming from a machine learning background, it's too hard to not think about this, because there's something we do called hyperparmater tuning for any given model, to get the max accuracy. So, can something similar be done here; Going through the 20 or let's say 10 years of data and calculating ending capital for each set of variables/rules or am I just being too optimiostic here? lol
I was also thinking the same man. Although i dont have enough knowledge of ai if we set the rules right and use a model to test it maybe we can build a profitable system.
Just saying...I began this series twice previously...and left in the midway...but finally Im here...also,I wasnt trading the last times...but now I am...so maybe thats giving me the drive...amazing work tanmay...
Prateek Sir and Tanmay bro and your team, you people are just gold. Thank you for sharing knowledge you are making a big positive difference for our country's youth and i hope you will bring such informative knowledge about money in the future too♥️
do we invest the full 1lakh in the first time or they just invest some x amount of money every trade? if its the latter , how do we decide what should that x be? feels like a dumb question...
I think it's depends on how much risk you can take per trade. Suppose it's 2% risk of total capital then 2000 rs loss per trade and 30% loss per stock hai na so around 7000 rs position sizing per trade.
Thank you so much for the eye opening sessions !! One query i have is, initial capital was 1 lakh but how do we plan the position size for each trade ? Was this system tested with equal allocation? Thank you
Hey it would be really helpful to show how to do intraday trading step by step and also please show a live intraday trade . I am 18 years old and I am very excited to trade and invest. I have learnt so much from your episodes and now I am hooked to trading and investing. I think I'll become a full time trader. Thanks for making so many educational videos it's really helpfull for our generation
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Been a fan of Tanmay and the way he is creating content will surely motivate the present generation. Hats off to Prateek Sir, LearnApp will change lives for sure. Just one question out of curiosity and pardon me if I missed the answer - What If we complete the quota of 1 Lakh capital with 20 stocks? How do we plan the future stocks on the same portfolio without repeating stocks? Do we keep adding units of the existing stocks in the portfolio with the new 52 week high? All in All how do we plan the capital investment for this trading plan post the 1 Lakh investment?
Hey, @LeanApp Please answer this question. If mass amount of people will follow a particular strategy, then what will be the outcome? Will the strategy fail (because of operators) or the strategy will boost (because of high volumes)?
