In this Face2Face video, we have with us our rocking host Mr. Vivek Bajaj, co-founder of StockEdge and Elearnmarkets, in conversation with Mr. Nitish Narang, founder, StockMock. Here, he will discuss his trading strategy that will help beginners as well experts in this field. This video focuses primarily on rule-based trading and systematic trading, providing a comprehensive explanation of these approaches and the strategies required to implement them effectively.
Mr. Nitish talks on his career path, which was motivated by his passion of problem-solving. He began with discretionary trading and went through ups and downs before switching to systematic trading, which uses rule-based strategies for consistent outcomes. By conducting research, he adopted systematic trading, aiming towards simplicity and eliminating the dependency on individual traders. A rule-based strategy emphasizes the success of the strategy and allows unbiased decision-making.
Mr. Nitish then highlights how crucial it is to comprehend that many drawdowns may be overcome by following by the guidelines and using a systematic strategy. He cautions against relying solely on backtesting, as it may provide an unduly positive impression. He suggests including variables like stop loss for accuracy. Automating trading decisions based on pre-established rules is a major component of algorithmic trading. Trading can become more efficient by reducing emotional biases and establishing specified entry and exit conditions. He then demonstrates the evaluation of a strategy using the Bank Nifty as an example. It is important to assess a strategy's performance across different market conditions to ensure its adaptability and reliability. The importance of risk management parameters, expectancies, R:R ratio, and terms like slippages are also discussed in this video for more clarity and for living up to the title.
Watch this video to learn more about Mr. Nitish's rule-based trading strategy, systematic trading strategies, and how risk management guidelines are crucial for generating predictable results in the stock market.