Strategy without any indicator

I'm dedicating this strategy to Malhar Chaniyara & Ravi Ramachandra Kini and calling it as
MCRK strategy. It's not a false statement to flatter both. I'm in constant touch with Malhar, who
being excel master keeps sharing me the backtests and it has helped me a lot. With my EMA
cross-over strategy Ravi expressed some real & genuine concerns, which forced me to rethink.
So, if you like the strategy the credit goes to Malhar, Ravi & BBM. If you don't like it - blame
only Basavaraj

Pitam Mondal suggested to use MACD for confirmation on EMA strategy. Though I liked it, I
thought it's moving away from simplicity. It made me to think what to do. Because, if we use any
indicator it will need continuous system monitoring which further will lead to emotional
hijacking. At the same time it is also true, we can't predict market move & is not in our control.
What next? What's is our control? Money management. Ok. One point can be taken care. Now,
how to control emotions? Only possible way is to stay away from monitor after placing order.
But it's possible only if I remove the LAGGING indicators. I remembered discussing with
Malhar. Take a position, place SL/SAR @ 0.5%. On trend reversal, again if it hits 0.5% - quit. It
means we are incurring 1% loss. He gave me few back tests. By minimizing SL to 1% & letting
run the profits - the profits seen were phenomenal. And, voila - the strategy struck to mind.

Before I open the strategy - How I want to trade it. I've maintained 10K in my trading account.
I'll utilize only 50% of it. i.e. 5,000. So, my intraday leverage is 50K. I'll select 4-5 stocks and
will allocate 20-25% to each stock and will trade on the same stocks everyday. My max loss is
1%. So, if all stocks go against me - I'll lose 500 Rs. But still I've capital to be active in the
market, next day. If I lose everyday & every trade for 20 days (1 month), I wud be blowing my
account. Then I have to consider myself to be unfit in stock market and will have to bow out
from stock market. (In above calculation I've not considered brkg+txs)

However, I strongly believe in LoP & PP (80/20). So, I am confident of emerging as WINNER.
20% good trades will bring 80% profit. 80% trades will get me balance 20% profit. 20% bad
trades which can wipe out the account are taken care by restricting to 1% loss. 80% bad trades
will bring intermediate small losses. Sounds convincing?

Now I'll come to the strategy. Keep ready 4-5 good stocks which show good movement
everyday. Either Nifty 50 or F&O stocks. With funds to be allocated known, calculate quantities
to be traded. Be ready with excel sheet with +0.5% & -0.5% calculations. The moment market
opens note down the open prices for these stocks on the excel sheet. You know +0.5% & -0.5%
values. Place SL Buy & Sell order. Depending on the market condition either of the order will
get triggered. Now you have already have opposite SL order placed which now is @ 1%. Done?
Log-off system and chill. What will happen? Other traders will decide whether to give you profit
or loss. Let them keep moving the market whole day. If the stocks move in your direction , you
will make profit. If moves against you, 1% SL is hit & you accept it. At 3 PM, login and see the
positions and square-off open positions with profit and respect the losses which have already
triggered.

Simple? No monitoring - so no emotional hijacking. 1% SL is taking care of money

management. For now this is the draft version. Think over it coolly and come-up with
improvement suggestions. You can even trade 1-2 stocks with just 1 qty. Once the strategy
becomes optimum, I'll prepare pdf doc.

Over to you now....