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omshivaya
Senior Member
Joined: 06/Sep/2006
Location: India
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Posts: 5966
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   Posted: 16/Jul/2008 at 2:03pm |
Originally posted by smartcat
What will happen if I bet Rs. 1 for every 1 Rupee (point) rise in some of the penny stocks? |
Re. 1 for a portfolio of Rs. 1000. The model currently has two versions: money management version and simple version.
I have back tested HDFC Bank from 1995 since the time it was around 40 rupees(small cap) using the money management version and it changes the amount to be bet according to scenario.
However, right now on TED I want to just test the simple version and that too only on HDFC Bank.
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The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it
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omshivaya
Senior Member
Joined: 06/Sep/2006
Location: India
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Posts: 5966
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Posted: 16/Jul/2008 at 2:12pm |
Originally posted by Musketeer
Omji, market pehle hi game baja rahi hai apun jaison ki, and you've invented another game.  |
Sorry sir!! Didnt mean to add to people's woes!  However, this is a model/system and not a game as such 
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The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it
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Vivek Sukhani
Senior Member
Joined: 23/Jul/2006
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Posts: 6675
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Posted: 16/Jul/2008 at 5:46pm |
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So guys......what was today's trade???????????????
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Jai Guru!!!
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omshivaya
Senior Member
Joined: 06/Sep/2006
Location: India
Online Status: Offline
Posts: 5966
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Posted: 16/Jul/2008 at 7:16pm |
Originally posted by omshivaya
16 July 2008
HDFC BANK
Portfolio Corpus: Rs. 1000
Position: Bet Re. 1 for every 1 rupee(point) rise from 919.20
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Status report:
HDFC Bank closed at 903.60
Portfolio corpus: Rs. 984.40
Sorry for being a bit late in my post! See ya thread tomorrow!
Edited by omshivaya - 16/Jul/2008 at 7:17pm
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The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it
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catcall
Senior Member
Joined: 02/Sep/2006
Location: India
Online Status: Offline
Posts: 1076
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Posted: 16/Jul/2008 at 7:39pm |
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Omji,Since this is a trading strategy, have you considered going in for a covered derivative strategy, say Buy an HDFC call and sell a HDFC future, since in such a case you will be able to maximise your profits (in case there are profits at the end of the day), else minimise your loss?? A straddle will help you to trade your profits in a range, Just a thought....
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There are two times in a man's life when he should not speculate-when he can't afford it and when he can-Happy investing!
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furkanalam
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Joined: 08/Nov/2007
Location: India
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Posts: 404
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Posted: 16/Jul/2008 at 7:44pm |
Just tell me one thing how do you get the target price to base your trade on.
I mean when you say Bet Re1 for every 1 point rise in HDFC Bank from 900...then here how do u derive the number 900....
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omshivaya
Senior Member
Joined: 06/Sep/2006
Location: India
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Posts: 5966
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Posted: 16/Jul/2008 at 9:02pm |
Catcall jee, I wanted to make it easy to understand for everyone and me and hence came upon using the "Bet Re. 1..." analogy. The profits should be better seen over a period of 3 months minimum. Sure, we can use those options when in reality we put the model to practial use, thanks!!
Furkanalam jee, the number(target price as you said) is generated by my model based on open, high,low,close prices of the stock over a period of many days and applying formulas to them.
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The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it
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Vivek Sukhani
Senior Member
Joined: 23/Jul/2006
Online Status: Offline
Posts: 6675
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Posted: 16/Jul/2008 at 10:30pm |
Originally posted by catcall
Omji,Since this is a trading strategy, have you considered going in for a covered derivative strategy, say Buy an HDFC call and sell a HDFC future, since in such a case you will be able to maximise your profits (in case there are profits at the end of the day), else minimise your loss?? A straddle will help you to trade your profits in a range, Just a thought.... |
Catcall Sir, these covered things are a ploy to enhance brokerage......
If you are bullish, simply buy a call.
If you are bearish, simply buy a put.
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Jai Guru!!!
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