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created : 4 months ago| |  live deployment: 8

created : 4 months ago |  live deployment: 8

DYNAMIC-Futures

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Strategy description

The momentum feature is well known and researched in the market. Momentum trades/signals often result in out sized positive returns when trades go well in their favor. At the same time, almost all momentum methods/signals suffer from frequent, small and multiple losses.

 

Dynamic Strategy is a proprietary systematic method designed by DECIBEL CAPITAL (www.db.capital) to capture momentum on Indian Indices of NIFTY and BANKNIFTY


It aims to identify bullish / bearish patterns in a systematic manner and uses volatility adjusted entry levels and trailing stop points. The method employs a proprietary method to filter out market noise from an underlying trend to ensure whipsaws arising from a trend-following method are removed.


This current strategy deployment is of the Swing System taken on a 5 Minute Chart. It will NOT EXIT positions on Intraday basis. The average holding period of this strategy is 1-1.5 Days. 


Backtest Performance 

- Capital Requirement : The current deployment has minimum capital requirement of 9,00,000. You can deploy it more conservatively or aggressively as per your risk appetite. 


- Money Management: At Tradetron Multiplier of 1x, the strategy will likely start at 1 lot each of Nifty and Banknifty. It will scale up/down the lots as the strategy makes more profits/loss. The performance below has been shown with lot sizes that adjust according to strategy's performance. 

- Commission/Slippage: 0.06% per trade (About 10 pts Nifty, 20 pts BankNifty)


Jan'2020 - Jan'2021 Performance


9,00,000 invested in Nifty, BankNifty & Combined (Current Strategy) would have given the following results at Tradetron Multiple of 1x:




BankNifty Backtest (upto 25-Jan-21)

Nifty Backtest (up to- 25-Jan-21)


All LIVE Deployments will also receive the following benefits for FREE
  1. TradingView Indicator Access - NEVER guess whether your account is accurately following the strategy. You can be at peace knowing exactly what is the current position of the strategy and in case of execution errors, you can follow the indicator and execute manual trades. 
  2. LIVE Alerts - Telegram Channel - Invite Only Channel Access - Instant messages are sent on this channel whenever a trade is entered/exited. Can help in case of execution errors. 
Send us an email at info@db.capital after your LIVE deployment to avail these benefits. 

Compounding

  • This strategy will take into account the PNL generated on your deployment to automatically increase the number of lots traded. Please ensure the following: 

  1. Your Deployment Counter is always 1. If you perform a Manual Pause/Exit of the strategy, the Counter of the strategy will change too and the PNL calculation will reset. The compounding will only work on the latest and longest running Counter PNL. The only way to ensure that the strategy compounds itself based on PNL, is to try to avoid Manual Pauses and Exits of the strategy. In certain emergency situations such as Error Execution or other errors, it is inevitable to perform a manual update. You can also compound by increasing the multiplier. You can change the Multplier after gaining at least 55-60% PNL on your deployed capital. Consider resetting Multiplier to 1x at the end of an year(calendar year/fiscal year). 
  2. If you withdraw Profits from your trading account, please delete your current deployment and redeploy the strategy. That will reset the Counter of your deployment to Base Capital and start afresh

Low Correlation
  • Trend following has very low correlation with other strategies such as Vol Selling (Option Selling/Straddles/Strangles) and thus this strategy can provide good diversification to your portfolio. 

Fee
A monthly Fee of 250 helps us cover costs of operations. Performance Fee of 15% of new profits made is charged on a Monthly basis. This strategy is designed to beat the markets over long run. You should deploy this strategy with at least 6-9 months of time frame in your mind. 

Other Strategies 
DYNAMIC - Options - (Lower Capital Requirement - 4 Lakhs):
  • - DYNAMIC - Options : Is Options version of the current strategy. That strategy trades on same underlying DYNAMIC signal, but trades on ATM Call/Put Options 
  •  https://tradetron.tech/strategy/320032

Quick Singles - (Capital Requirement - 2 Lakhs):

- Quick Singles is a collection of High Probability Short-Term signals that trades at low frequency of 4-6 trades/month and aim to achieve additional alpha on capital that is used as a buffer to the current strategy. 
https://tradetron.tech/strategy/543679

Statistics

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