June 25, 2018

Prathmesh Godbole: Journey of a trader who likes to keep it simple

Q: What has been the outcome of the studies, how do you trade?

A: The outcome is a very simple process. I trade on two strategies. One is an intraday strategy using a one hour chart and the second one is a slightly longer timeframe strategy where I use the four-hour candle to trade. In the second strategy, I only use the Nifty futures to trade while in the first one I pick up liquid stocks from Nifty 50.

Both the strategies are more or less the same in principle. In the intraday strategy, I look for a big candle on the first hour, whose closing should ideally be above the previous day’s range. I take the trade above this candle with a 1:3 risk reward ratio. If the first candle is too big I wait for the second candle to form that offers a better risk-reward to trade. Like there was a trade I recently took where the first bar would have meant that the stop loss was nearly 2.5 percent away. I waited for the next bar which reduced the risk to 0.3 percent.

Normally this strategy does not throw up a trade every day, generally, it is around 2-3 trades in a week. Every month there are 4-5 stocks that have a strong trend.

But I have seen that at times I get in at the start of the trade...

Read more at https://www.moneycontrol.com/news/business/markets/from-nyu-to-trading-indian-markets-journey-of-a-trader-who-likes-to-keep-it-simple-2624931.html

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