Algorithms

Futures Positional Algorithm (FPA)

In this Trading System, we first decode the Technical Structure of the stock (as in the image above) in a higher time frame (Weekly & Daily) and then delve further into our preferred lower time frame (75 Min) for Execution.

The idea is to look for Low Risk / High Probability set-ups.

The accuracy rate of > 80%, a controlled Maximum Drawdown of 10-15% vs the Annual Net Profits in the range of 40-60% are some of the key performance metrics of this consolidated System.

The focus is deeply on Risk Management with Reward : Risk being at 1.5 – 2, having the initial maximum fixed stops at around 3-4% from Entry Price, whereas the Maximum Profit Targets being at 6-8%. The other Exit Strategy components active in real-time are Pattern Invalidations and Trailing Stop Methodology on the adverse side and Early Exits depending upon Volumes based Accumulation/Distribution, Standard Deviation Bands on the favorable side.

The screenshots of the Back-Test Performance Reports from Ninja Trader are attached here, as generated by the software. The Universe is those stocks from NIFTY 200 Index that are in Futures segment and it further omits any stock that’s priced under 50. Stops are placed at 3-4% from Entry price, but in backtests it doesn’t show execution of such Stops if that happens in the middle of the bar. Hence, in some cases, it shows greater percentage of largest loss, which will not be the case.

For any clarification on any particular term or aspect, please contact at +91-9082061030 (WhatsApp/Telegram).

FPA – RANGE MARKETS


FPA – MOMENTUM – SHORTER TERM


FPA – MOMENTUM – LARGER STRUCTURE


FPA – MEAN REVERSION – ONE


FPA – MEAN REVERSION – LARGER STRUCTURE

The Structure identification is working well but the execution of this structure needs more work. So, at this point it can still be called as work-in-progress.


Contact +91-9082061030 (WhatsApp/Telegram) for more details.

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