Tracer_Bullet
Galvanizer
Ideally, a backtest should allow you to set some position sizing rules and then get some type of returns/risk numbers ? Do they do this ?
Indian Stock Market and Mutual Funds
- Thread starter anmolbhard004
- Start date
yeah you can keep adding but currently wait till budget to be least
kartikoli
Innovator
They give you a csv for backtesting, The results were good when I checked 3~4 months back but as I invested the market changed the mood and started falling so I was able to exit from one of the stock but still stuck with other.
(When I say results were good that was the period when market was booming)
That is the catch. Such paper/virtual trading only gives you an illusion of knowing stuff but it can never prepare you for real market conditions. Just the fact that you know in advance that you have zero money risk in such paper trading distort your decisions & strategies compared to when actually invested in real market with real risk of money loss.
Tracer_Bullet
Galvanizer
ok, so we need to generate report ourselves.
Yeah, you are right. And this is not really for everyday people, but people so often make mistakes and think stock market = easy money when market is moving up.
But, testing data is good. Only you need to test for long time, say 10 years, and then see how things work after taxes, charges and slippages. Whether it works, how bad it can get etc.
Better to test, instead of going in completely blind, with only belief that some theory will make money.
kartikoli
Innovator
They will only provide a csv containing stocks that appeared on a specific date, for backtesting you need a database to check which I got it from bhavcopy lastly used python script to check different scenarios.
Naveen_Reloaded
Herald
I am trying to learn F&O (just learn and practice). What are the resource , any good course (even paid is ok) , books , available ?
Also is there a platform where i can practice (simulation) ?
Also is there a platform where i can practice (simulation) ?
Psychologically yes. Otherwise the back testing is supposed to work if you tested it for different market conditions (sideways bull etc) and applied it in the right scenario. Of course, what works today may not work forever. That being said, i had back testing multiple scenarios many years ago. All of them failed.
Tracer_Bullet
Galvanizer
Did you adjust for splits/bonus/dividend ?
Bhavcopy has that info too in 'PR' files but we need to parse it and look for errors. That's something i need to do in next few months before i can start testing things for overnight. So far have stuck to intraday only.
I also use python/pandas for all of this ( on Linux !) .
thelamar
Contributor
Don't do this, there are thousands of books and hundreds of courses available but nothing going to help you unless you are ready to invest your 4-5 years of your life in the market and no simulation/backtest going to help you in real time market, they look good only on paper, instead of learning F&O, try learn more about long-term investment.
kartikoli
Innovator
I didn't check bonus/dividend but checked split. The script I made would give me data for all shares that I want to check for specific period of time and then use spreadsheet to analyze different scenarios. Here is an old screenshot for reference.
Column M would show if the stock was in green on the day of investment (Only invest in stocks that were rising)
Column O assumes if stock was purchased at closing price, what would be the return in first week
Column Q does the same but for 2 week period
Tracer_Bullet
Galvanizer
yeah, looking at what happens x weeks after signal is a good way to test entry, i do same for multiple windows and like to see returns increasing steadily as window increases ( aggregate for all stocks ) .
pandas/numpy can replace excel/calc and allows putting everything in code. Initial effort is more, but then we can test more.
No one gives clean adjusted EOD data in India, with dead stocks too. So we need to do it ourselves, i am half done and use bhavcopy corp action data to get warning, but now need to automate it fully and get some sort of csv for each scrip with adjustement ratios. Anyway, good luck with trading/investing ...
kartikoli
Innovator
Its actually good to use spreadsheet to do small amount of backtesting manually, Like if you want to invest in stocks that moved 3% on trigger date then simply select those stocks to see how they did after week, 2 weeks, a Month etc.... (or if you want to check stocks that moved 2% up, you have the data on spreadsheet so its easy to work with filters). I did make few automations using formulas but decided to work manually because you can have lots of scenarios and the needs change with time.
And good luck to everyone hope we all become millionaires
Naveen_Reloaded
Herald
Thanks. This F&O is f*cking tempting to try.
Anyway i do regular investments though.
thelamar
Contributor
You are not alone, my friend. Thousands of people are being influenced by social media and finfluencers, who make you feel like everyone else is making a ton of money except you.
Tracer_Bullet
Galvanizer
Here,
Lost 31 lakhs in Options Trading in a year
Hi everyone, I started options trading last December from then to today I am in a loss of 31 lakhs which is more than 4 times of my annual salary. 90% of the amount is debt(loans). I am feeling very sad can’t even express. I tried psychiatric session medicines to control myself after these...
tradingqna.com
Many more, just search in that forum. People can become crazy once money is involved. Even taking loans to recover losses
Trading is competitive, and fno even more so as we have more professional traders there. God knows why we all think at the start that we can make easy money.
Nope, Amateurs lose consistently.
Ceo of Zerodha himself has said ( to raise awareness) that less than 2% make more that FD in 3 years. Even less make any meaningful money.
Not saying we cant trade for money, we can - i do - But its tough and you cant make half hearted attempts and should be ready for multiple failures.
For most, better to just invest and focus on your career.
raksrules
Oracle
I have a feeling that one cannot make big money unless they invest big money. Basically, a Rs. 500 SIP is not going to help you much in mutual funds. Don't go by those 1000 to 1 Cr videos. Real money I feel can be made if you invest substantial amount. OfCourse this also means that when markets go down, you get screwed big time as your portfolio (be it mutual fund or stocks) goes down exponentially too (unrealized/notional loss).
But jumps too are equally good (but not as drastic as draw downs...from personal experience).
Only what you are comfortable with. If you want to just ask if you are investing in right funds, may be just put what amount (or percentage of total) you are putting and in what fund and we can try to help.
But jumps too are equally good (but not as drastic as draw downs...from personal experience).
Is it ok here if I list out my mf portfolio here? just looking for some guidance since I just started on this [I am a student currently]
Only what you are comfortable with. If you want to just ask if you are investing in right funds, may be just put what amount (or percentage of total) you are putting and in what fund and we can try to help.