Here I will show you how to make consistent profit in trading in any market whether it is stock, commodity or forex market. By the end of this page, you will have at least one reliable solution for how to make money in stock market and confidence that you can make money from trading. During the experience of my trading and researching, I have got some feeling of what works in trading and what doesn’t. While there are numbers of different techniques and strategies that can help you make money in the market. But the core of all that was about the price.
Because the price is the only indicator which each and every trader watch before they enter their trade whether he is a technical analyst or fundamentalist or a random trader.
How To Make Money In Stock Market – The Trading System That Really Works:
I strongly believe that a trader must closely follow the price direction to be consistently profitable. Based on this idea I have developed an indicator which directly works on price. This indicator can beat any strategy or indicator single-handedly because it directly works for profit. And I am going to prove it right here. Here I will show you the backtest trading result for this indicator. The backtest result that I will show you here is 100% genuine and you can reproduce the same in your system if you follow the procedure.
Here I will backtest this simple strategy with MagicTrend Indicator on NIFTY 15 Minute timeframe chart. As Nifty 50 is the highest trading index in F&O segment and also the most popular index in India. I am backtesting this on last 4.5 year of Nifty 50 intraday data. The above chart shows the price with MagicTrend Indicator and the bottom panel is the equity line. The equity line is total profit from the trading in the selected period with the MagicTrend Indicator strategy.
Highlights Of BackTest Result:
During the period of 4.5 years there was total 985 trades out of 401 trades were winners and 584 are losers. So almost 41% of the trades are winner. This is normal in any trend following system. Because profit from winning trade are larger compare to losers. The total return is 6555% which is 156.5% annually.
The Equity Curve:
The equity curve is a visualization of the profit from the strategy of the period of time. And as you can watch in the above slideshow, it is going up steadily with time. There are some setbacks from the peak profit points which is due to longer period of sideways market moves. There are also some measures to overcome these periods.
The Drawdown Curve:
The setbacks on the equity curve are called drawdowns which is shown in the blue chart. As we can see they are limited to around 30% which means we are taking risk of 30% of our equity to earn the huge annual return of around 150%.
The Profit Table:
Annually we have consistently profitable periods of five years. In monthly results, there are average 3 losing months per year and rest 9 months are profitable which is a very good consistency.
Now the important part is setting of backtesting results. The margin used is 25% which means we have 4 times of trading limit of our equity capital. Here we are using only the closing price for entry and exit signal which is reliable to implement the strategy in real-time. We are using 20 Rs per trade brokerage which is also easily implementable with brokers. So we are using most practical scenario for backtesting so that the results are reliable and applicable in the real world.
This was just the highlights of the complete backtest report which you can find on the link below. Check it yourself for more details. You can take a free trial of the same MagicTrend Indicator or you can also purchase a lifetime license for it on the shop page of this website. The indicator works well on all tradeable markets like forex, commodity and stock market.
Watch this blog post in a compact video presentation: How To Make Money In Stock Market