In the year 2016, our portfolio graph surged 124% through the year in a period of down, then up and then sideways markets.
In the first 2 months of the year when the markets were mostly down in Jan and Feb our Portfolio returned 23.5 % and 18.5% respectively. In a market which went up in March, we clocked a third straight win of 26.4%. Our best performance came in the Month of June when the market moved a narrow 387 points only ( lowest range of the first 6 months) and we clocked 30.9% in that month. Towards the end of the year especially in Nov, we had a few trades go wrong as the twin effects of a Trump Win and Demonetization, both exogenous events, played out a 500 point up- down range in 3 sessions and we gave back 24% to the market.
But in Summary, the year went well for the team at Vtrender and we are happy with the 124% on our model portfolio of 10,00,000/- we started with on Jan 1 2016. That portfolio is at 22,39,743 /- as the year drew to a close.
Our Belief is in Market Profile. It works in all kinds of Markets whether going up or down and even sideways. We also strongly believe in our risk management setups which allow only 3% risk for every trade and allow Time and the System to do the rest. There are very simple rules to trade the market. First is to define your risk and Vtrender believes in knowing the amount beforehand like 30,000 in our case for our 10 L model and then allowing Time for the market to do the rest. In fact, this is a business where you do not make Time your enemy and Market Profile is well known for documenting the importance of Time, Volume and Price. We have lived and breathed on those principles taught to us and are happy with where we are with it.
The Right setup + Proper Position Sizing + Correct Money Management= Growing Account
January Series :
Summary :
- Total trades – 16
- Win-loss ratio – 11 W- 5 L
- Total gains in the Month – 2,80,770/-
February Series :
Summary :
- Total trades – 20
- Win-loss ratio – 13 W- 7 L
- Total gains in the Month – 1,89,625/-
March Series :
Summary :
- Total trades – 27
- Win-loss ratio – 18 W- 9 L
- Total gains in the Month – 2,64,165/-
April Series :
Summary :
- Total trades – 17
- Win-loss ratio – 9 W- 8 L
- Total gains in the Month – 91,275 /-
May Series :
Summary :
- Total trades – 17
- Win-loss ratio – 9 W- 8 L
- Total gains in the Month – 1,29,965 /-
June Series :
Summary :
- Total trades – 22
- Win-loss ratio – 15 W- 7 L
- Total gains in the Month – 3,09,340 /-
July Series :
Summary :
- Total trades – 15
- Win-loss ratio – 9 W- 6 L
- Total gains in the Month – 93,525 /-
August Series :
Summary :
- Total trades – 12
- Win-loss ratio – 9 W- 3 L
- Total gains in the Month – 32,430 /-
Sept Series :
Summary :
- Total trades – 14
- Win-loss ratio – 11 W- 3 L
- Total gains in the Month – 1,81,325 /-
Oct Series :
Nov Series :
Dec Series :
The performance report is on a 10L model, is only for swing and positional calls and is not- compounded. The effort here is to show how a good trade location marked with a well-researched entry point and a proper exit point along with correct position sizing and trade management are important for the growth of an account.
We do not risk more than 3% in Nifty trades and trade BNF Futures and Options with a 4% risk ( exception made only for BN) . We also do not add back the profit to the capital account for trading and every month we would stay with a 10L model to begin the month irrespective of what happened in the previous month.
The position size depends on the Stop loss we have at the time of trade entry. So for 100 points of risk in the Nifty, we will go with 4 lots and for 200- 230 points of risk in the BankNifty, we maintain 6 lots. If the SL is higher in the setup then we scale down the lot size and if the SL is less the lot size increases. In Nifty options for a risk of 30 points in the setup we would go with 14 lots and in BNF for a risk of 80 points, the lot size is about 16.
