One of the biggest mistakes I made in algo trading was curve fitting.
It took me months (and a lot of live trading) to realize that a great backtest doesn’t necessarily mean a great strategy.
Last month, someone told me:
“I made ₹5 lakhs profit in a stock with just ₹10 lakhs.”
Everyone around was impressed.
50% return. Quick money.
But I asked him one question:
“What % of your total net worth was that ₹10 lakhs?”
He said,
“Hardly 3–4%.”
@ShereenBhan Its very naive analysis, Its like seeing people lose money at casino and saying, “We care about you, so we are increasing the entry fee for your protection”. Casino still open, you still lose but now you also paid more to enter. Caring at its finest.
How changing hands of share from FIIs to Retailers looks :
I am going to teach you with practical examples at free of cost. If you think it's worth it then do share this so people at least know how this works & whom not to follow in share market . Thread 🧵
Gave fake breakout on 17/08 opened gap down on 22/08 indicating change in intermediate trend to bearish, haven't filled gap till 17760, next support 17400 and 16950 which is also 38.2% retracement level. Sir your inputs please @gautam_icma
Update: gave a breakout on downside around 36900 on 18-4.
Fell 3800 points from there (almost 10%).
@gautam_icma ADX is still at 28 and sloping upwards. This is still very scary right?