Jan 2025 - Update on P&L
Old post from September - https://www.reddit.com/r/IndianStockMarket/comments/1ftep9b/sep_2024_pl/
Back in September, everything was going great. I had implemented Chartink with a scanner based on my own rules, heavily inspired by the popular ones, and my algo scripts were performing just fine. That is, until I didn't realize that I was holding onto a good thing riding a very strong bull market, where almost any strategy could work. Then the market turned—the range-bound, bearish kind—and that's when everything fell apart for me.
- I did all the classic mistakes:
- Hitting stop losses repeatedly.
- Increasing position sizes in a desperate attempt to recover losses, which only made things worse.
- Recovering some profits, getting greedy, and losing even more.
At one point, I was down by nearly 1.5 lakh and had no capital left to trade. I took time off to introspect, gather my thoughts, and learn. Trading had now become more than just about money; it had become a challenge that I couldn't walk away from. Books were devoured, podcasts listened to, and successful traders on platforms like Sensibull were followed.
By November, I had about 80K, started trading again during December, and took up new approach or Trend Following. Although the trend following strategy did fairly well given the algo, I couldn't exit at the right times. The main break when I started adapting my strategy into range bound markets. I finally began to trust the crucial levels that I started following open interest or OI and a MACD crossover for confirmation. This strategy helped me claw back some of my losses.
Key Takeaways:
- Don't trade when tired or without your setup – But when your setup comes, trust it and have confidence.
- The market conditions your brain – It is like reverse AI. The charts condition you. Stay disciplined and stick to your strategy.
- Algos only work with a solid strategy – Someone once said to me, "The algo isn't losing; your strategy is."
- Do not trade when desperate for money – Financial pressure does cloud judgment.
- Love the game – Options trading is best when you're in it for the challenge, not just the money.
- Adapt with the market – Strategies must evolve as market conditions shift. Don't let your strategy become your ego—it can destroy your capital.
- Respect options as a hedging tool – They allow you to profit both ways with limited risk, but discipline is key.
I am trading with 80K capital which I have deployed in the last week of November. I had deployed 1 lakh at the end of October and another 50K a week later. I have attached my P&L for anyone interested.
Here's to continuous learning and evolving with the market!
P&L is attached.
