March 31, 2019

Vishvesh Chauhan: A systems trader par excellence @iamVishChauhan

All throughout, my focus was on price and volume. I was taught that irrespective of whether you are a promoter, analyst, trader, fund manager or insider you can do only two things when you come to the market: buy or sell stocks. Now, if you trade in large volumes, you will leave your signature on the market.

Reading price and volume data gives an insight into what the ‘smart money’ is doing. I have always looked to read the price and volume data to understand the force behind the price action.

Having said that, one needs to know that the market is nothing but a mass psychology reflector. There are three emotions – fear, greed and hope – prevalent in the market at all times. One can only take unbiased decisions in the market if he is detached from these emotions.

Now, markets have an inherent structure. The puzzle is to crack the structure. If you can do it, you can forecast overall behaviour to a large extent, though you may never always be right.

Trading techniques can be developed using these structures. However, there is a flaw in such technique. The flaw is the bias that comes with this strategy. In order to remove these biases, I decided to codify the system. But coding the system is a huge task, if one wishes to incorporate all parameters.


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