Interview With a Trader

#1
Zerodha had conducted a challenge where anyone who was profitable for a 60 day period were refunded their brokerage. Around 2000 people participated in the challenge and around 300 people won it.

Of the 300, 200 managed to make around 10% in that 3 month period and 100 managed to make more than 10%. Nevertheless, 20 people managed to make more than 100% in that period.

Below is an interview with a trader who managed to make more than 400% in those 3 month period.

Any trader or aspiring trader would find the interview inspiring.

Software Engineer up 400%
 

Alchemist

Administrator
Staff member
#2
I think this guy is following some sort of moving averages system.

From the same article:

[FONT=verdana,sans-serif]I am a trend follower and I don't keep a target for profits. When I get into the trade I define the stop loss to know the risk of the trade. The stops keep getting pushed higher when market goes in my favor and if you look at most of my trades I never put target orders to exit, usually the market stops me out.[/FONT]
I was stopped out, but my system is a trend following system and it gave me re-entries again. So my one advice to traders - Trend following is the best way to sustain in market.
I would like to know what charting software this guy uses and where he gets the hourly data from.

Any guesses?
 
#3
I think this guy is following some sort of moving averages system.

From the same article:

I would like to know what charting software this guy uses and where he gets the hourly data from.

Any guesses?
He said in the comments section that he uses icharts.in for his charting.

People generally don't reveal their trading methods. But yeah, its got to be MA's, MACD and the usual trend following stuff. You could maybe throw in an RSI. I don't think he uses some exotic or proprietary indicators.

You can read the comments section in the link. If you have a question, he may answer it there.

By the way, he made 100% on his trading capital and 400% on the amount with the broker (Zerodha). There is a difference between both of them.

Zerodha is now considering introducing permanent "Zerodha challenge". It should be very useful to profitable traders as their brokerage would perpetually be 0 :D

I think they got their inspiration from the casinos who rely a lot on probability. No matter what, the ratios of profitable to non profitable traders in a random sample would always remain the same. So, the "challenge" itself shouldn't strain their purses much as the profitable traders shouldn't constitute more than 10-15%. It also motivates losing traders to trade more in the hope of being profitable.

Nevertheless till now, my experience with them has been very good.
 
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#4
Apparently the guys uses the SAR indicator (probably on one hour charts). Here is his blog.

SAR sticks with his philosophy of always being in the market. I don't subscribe to that and on top of that I had tried SAR before but it didn't work for me. If it works for him then all the better.
 

Alchemist

Administrator
Staff member
#5
Apparently the guys uses the SAR indicator (probably on one hour charts). Here is his blog.

SAR sticks with his philosophy of always being in the market. I don't subscribe to that and on top of that I had tried SAR before but it didn't work for me. If it works for him then all the better.
Many years back, I had tested a similar system with daily charts.

In my opinion, SAR works when the market is trending.

When there is no trend, SAR doesn't work and usually leads to losses. In such cases brokerage is a big contributor to losses and having a cheap broker like Zerodha can make a big difference to the final loss figure.
 
#6
Many years back, I had tested a similar system with daily charts.

In my opinion, SAR works when the market is trending.

When there is no trend, SAR doesn't work and usually leads to losses. In such cases brokerage is a big contributor to losses and having a cheap broker like Zerodha can make a big difference to the final loss figure.
One must look for whatever advantage they can get in their favor before initiating a trade. That usually entails trading only high probability setups, keeping the risk low (with a SL, by hedging or whatever), keeping the brokerage low (maybe having a discount broker; though I must mention that ironically Zerodha is the most expensive among the discount brokers), etc.

Most technical indicators don't work when the market is not trending. Some say oscillators like RSI and Stochastics work best in range bound markets, I feel it really depends.

Unless the range is tradable it's not worth it. The best traders stay out of sideways markets. No wonder the volumes are usually subdued during these periods.

In my opinion, the most high probability and rewarding trades occur when the markets trend. It's best to stay out of sideways markets.

But then a sideways market for a long term trader (like from 07/08 to now) may have many intermediate trends for a swing trader (like myself). So, it's all relative as well.
 
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#7
Umm, the guy doesn't use SAR but rather calls his trading method "SAR" because he not only closes his position but takes an opposite position each time he gets a signal.

He wrote in a comment on 23rd July that he uses "Pure price action with few ema"
 
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