Analyzed last 12 years of historical data to check if there are any patterns we can observe to find the best time to invest in stocks for long term. #Nifty50 #investing #stocks 1/10

A small thread on various historical data analysis and trading strategies articles that I have shared so far. #TradingSystem #AlgoTrading 1/n
"Is long strangle strategy profitable?" https://t.co/luHnX1SGxx

"Is #Intraday trading profitable?"
Every long term investor was once a Intraday trader.

If you avoid the below three mistakes, intraday trading is definitely

"The best way to invest in #StockMarket, follow this simple rule"

Let’s consider two different scenarios,

Market crashes after your investment
Market rallies after your

Investment in #Gold is really good diversification. It helps well during bad economy period. However, instead of buying physical gold, you can invest in Gold ETF like Goldbees. Here’s the last 13 years historical analysis of Gold price

How about a trading system that gives you just two or three trades in a year, but ends up giving phenomenal returns. This is one such trading strategy with plain simple rules

I have watched lot of movies but only few movies would change your perspective towards life, here’s the 10 movies that really changed my mindset

1.The Theory of Everything

Brilliant acting , truly mesmerising portrayal on life of Stephen Hawking, never felt bored even for a sec

2. Rush - it’s a film about F1 racer James Hunt & Nikki Lauda, excellent narration and incredible acting. The dialogues were truly masterpiece and it’s still stays in mind even after 9 years

3. The Founder - This movie released at the right time in my life, when I was about to quit my job and focus full time on my startup. This movie is all about single man Ray Kroc who built a billion dollar empire McDonalds. This is the best entrepreneurship movie ever made.

4. The Imitation Game - I watched this movie when I started my rule based trading journey in 2014, struggled a lot during my initial phase with code, unable to get any breakthrough, this film gave my that ray of hope. It’s about a mathematician who broke the code n won the war

5. The Pursuit of Happyness - any favourite Movie list would be incomplete without this movie. Will Smith, damn what an actor he is. I watched this movie when I was in college days, still remember the day, I was crying non stop during the interview scene. Brilliant film.

Over the last couple of years, I did n number of research on systematic investment methods.
What happens if I do SIP only during market corrections ?
What happens if I pick stocks based on momentum rules? Here’s small thread on Why I moved to index fund investing? 🧵

When it comes to trading most of us are busy with backtesting multiple option trading strategies with no code platforms like Stockmock Algotest etc but when it comes to investing very few charting platforms available to test long term investing methods.

I wanted to do SIP but instead of investing in mutual funds, I wanted to develop systematic approach on choosing the stocks and invest in them and rebalance them based on certain criteria.

I have written multiple articles on this topic, like how to find which is the best sector to invest?

Should you invest in 52 week high stocks or 52 week low stocks ?

Earlier many traders were trading based on discretionary without any rules based approach. Now a lot of traders are ready to move to algo trading but confused with a lot of options. When you are bombarded with tons of different trading systems, how do you choose the best one?

Many traders still think winning accuracy is the most important parameter in a trading system. But is it really true? Let's check this example. Consider, we have three different trading systems.
System A,
System B and
System C.

System A has 90% winning accuracy,
System B has 10% winning accuracy and
System C has 50% accuracy.
When given a choice, most traders will opt for System A as it has the highest winning accuracy of all with 90%.

But System A is not the right choice. The average profit in a winning trade is Rs.1000, that is 90% of the time System A is capable of making Rs.1000 profit. But remaining 10% of the time when the system is making a loss, it loses a lot. So after 100 trades, net result is -10,000

System B, The average profit in a winning trade is Rs.10,000, that is 10% of the time System B is capable of making Rs.10K profit, which is ten times higher than its losing trade. The average loss in a losing trade is Rs.1,000 but 90% of the time the system will continue to lose.

A thread on Trend-lines

// What are trend-lines?

Trend-lines are support and resistance lines which are formed by connecting Important swing points.

The beauty of using them is that We can use them when stock is not Respecting the Horizontal S&R zones, they can indicate us when the trend may change.

// Things To consider while Making trendlines?

• A trendline formed by using 3 Major-Swing points is a potential trendline, But we will also use 2 points to form a trendline, will discuss how, as you read further.

• Trendline can be formed by two ways-

1. Wicks-

In this method we only connect the wicks to make a trendline, this is a precise way of making a trendline.

// Why only connect the wicks?

There are two type of levels - Precise and Less precise (Which we call zones).

So what we are doing is by only connecting the wicks we are making a precise level where we can take trades, either Mean reversion or Breakout trades.

Examples-

Thread: Parabolic SAR Indicator

Parabolic SAR (PSAR) indicator was developed by J. Welles Wilder.

#PSAR #Indicators #Definedge

The calculation of this indicator is a bit complex, but the concept is extremely useful. I will try to simplify it and explain the logic. I will briefly explain the concept, calculation and reading.

Let us think about creating an indicator that shows the trend.

Using the indicator, we can identify & ride the trend using the trailing stop-loss method.

For trailing the stop in uptrend, indicator needs to be placed below the candle. Similarly, it should be placed above the candle for trailing in a downtrend. We will plot it using ‘dots’.

So, the indicator & stop-loss will be rising in uptrend & falling in downtrend.

Let us define the trend as:

If Low of the candle > Stop-loss level in bull market = Trend remains bullish.

If High of the candle < Stop-loss level in bear market = Trend is bearish

Imagine you are driving a car on highway; you would like to accelerate if the road is clear. You will slow down if the road is bumpy.

20 lessons from trading legend Stan Weinstein:

Volume is a gauge of how powerful the buyers are... Never trust a breakout that isn't accompanied by a significant increase in volume.

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@AdityaTodmal @niki_poojary I think the best Indian channel for Options Selling is @ThetaGainers, by far!