Happy Diwali everyone 🙏!

Here is a #TradingView example that calc ideal position size for your acc. size and max risk

The position is volatility adj. (⏫vol,⏬pos size)
Am sure you will see immediate results if you follow this position mgmt. concept

RT,❤️& DM for the script!

Lets talk about returns (risk adjusted!)

We are used to seeing % returns made against capital or even % made against margin blocked.

This is a wrong way to see the strategy performance due it doesn't take into account the risk taken to generate that return.

(1/3)

Thus the formula to calculate the "risk adjusted return" is:

Sharpe ratio = (Current Return - Risk Free Rate)/ Stdev(Historical Returns)

Lower Sharpe ratio means the strategy is unsustainable even if profit factor and win% are satisfactory.

(2/3)

Some tips:
- Calculate the Sharpe Ratio of the entire portfolio vs individual stock
- Track the Sharpe Ratio regularly as it can vary based on historical performance
- Even a low return portfolio/strategy can have higher Sharpe Ratio if the risk undertaken is less!

(3/3)

MEGA Thread on Moving Averages 🧵👇

In this thread, we will cover a lot of ways in which moving averages can be calculated

Goal of the thread is not to find the best MA but to explain the concept behind
I am sure you will find new ones on the list!

Lets start!
(1/11)

Simple Moving Average (SMA)

A SMA is a sum of past N values of PRICE divided by N

A SMA looks like below on the chart and is basis for more than 50% indicators out there (50% indicators show more or less same info as a SMA)

(2/11)

Exponential Moving Average (EMA)

The EMA places priority to price values that are recent. This enables it to be responsive compared to SMA.

Hints:
- Use it if you need a responsive MA
DEMA, TEMA are application of EMA over EMA to make it more responsive.
(3/11)

Weighted Moving Average (EMA)

The WMA is similar to placing priority to recent price changes. Its smoother because it adds weights rather than price fraction.

Hints:
- Jitteriness of EMA can be avoided with using WMA
- VWMA adds volume component to calculation

(4/11)

Hull Moving Average (HMA)

Perhaps the most elegant moving average and very smooth to look at.

HMA has reduced lag and also very responsive to price change.

Sudden price changes induce a overshoot which is rectified by the Jurik Moving Average (JMA)

(5/11)

For traders who are fond of moving averages, Here are some practical pointers:
1. Get rid of the shorter term moving average completely in case of crossovers (unless its 5 period or less, or used for smoothing data)

(1/3)

2. Considering moving to Moving Average Bands
- baseline with high and low
- baseline with ATR bands
-baseline with STDev bands (Bollinger)

my chart study with moving average is like this👇

(2/3)

3. Avoid trades on a moving average crossover (unless its long term averages used for direction bias)

Below are the trades from a 3x5 moving average crossover system

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Thread on INDICATOR DUPLICATION

We usually try our hands with some of the well known indicators to see if they have an edge.

But the fact is that most indicators are based of the humble...you guessed it.. MA

Lets see this with famous ones : RSI, Wil %R, CCI, PSAR, MOM, ROC

RSI, William %R 50 level crosses coincide with 14 MA crossovers

CCI, Momemtum crosses coincide with 14 MA crossovers

PSAR, ROC crosses coincide with 14 MA

🥊Candle "Wicks" have their own story to tell🥊

@ every timeframe, its like a boxing match between the buyers and sellers.
Candle Body (🟩/🟥) tells who won the round

What about the Wicks?
They do tell a story.. read on..

#StockMarket #sharemarket
(1/1)

LONG LOWER SHADOWS and HAMMERS
- The sellers are pushing the buyers hard or the buyers play a waiting game and eventually power the price higher

See the chart below, the buyers are not willing to lose and eventually the sellers give up.
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LONG UPPER SHADOWS and SHOOTING STARS
- The buyers unable to keep the price higher for long and eventually give up.

See the chart below, the sellers strength is too much for the bulls
Some cases the sellers prevent from price going higher.. this is evident from the wicks
(3/5)

HEIKIN ASHI CANDLES

HA candles do a good job at identifying indecision and unanimous movement of a counter

HA range candles give us the places where
- we should avoid direction trades
- prepare for a directional move

(4/5)

WICKS FOR STOCK PICKING

A glance of a stock tells us about the volatility of the stock

If most of the candles have wicks then the counter is volatile in that time frame

SL hits are common

Look for stocks that have proportionate wicks if you are a conservative trader
(4/5)

Statue of Equality (Ramanuja) Muchintal, Hyderabad, Telangana

The Statue of Equality is a monument in India dedicated to the 11th-century Vaishnavaite Sage Bhagavad Ramanuja, commemorating 1000 years since his birth. It was inaugurated by Prime Minister Narendra Modi ji in 2019.

In 2014, Sri Chinna Jeeyar came up with the idea to commemorate the 1000th anniversary of Sri Ramanuja's teachings by building the Statue of Equality. The statue is constructed on an estimated 34 acres in Hyderabad, India.

It consists of a 216 foot tall statue of Ramanuja and is surrounded by 108 Divyadesams (model temples) and includes an educational gallery. The project budget is 1000 crore rupees.The foundation stone for the Statue of Equality was laid by Chinna Jeeyar.

The statue was built by Aerosun Corporation in China before being shipped to India. It is made of panchaloha, a combination of gold, silver, copper, brass and titanium. The statue relies on donations to fund its construction.

The temple is located on the 27,870 square metre second floor with a 120 kg statue of Ramanuja, representing the years he lived, meant for daily worship. The 1,365 square metre third floor including a Vedic digital library and research center.

Low-risk, High-return stocks are what we look for relentlessly

But many of them we know but ignore
some of them don't grab financial headlines

Here are 10 low-risk, high return stocks (that we ignore):

What I mean by “high-return”?

These stocks have OUTPERFORMED the market:

💹Chart with upwards trend Since IPO
💹Chart with upwards trend Over the last 5 Years or since IPO

These are all long-term winners that will keep on winning

What do We Mean by “low-risk”?

A combination of:

❣️Great management
❣️Broad moat
❣️Financially strong
❣️High ROCE
❣️Low Disruption/Dilution/Volatility
❣️Consistent Organic Growth
❣️Assorted Customers/Suppliers
❣️Low debt

1-#CDSL

A depository is a big business and will grow continuously, Its a sustainable business
cause "Market hai toh CDSL bhi hai or rahega"

2- #Dixon

High Management Efficiency with a high ROE of 19.30%
Healthy long-term growth as Net Sales has grown by an annual rate of more than 30%
High Institutional Holdings

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