What is DTM-BnRTS
DTM – BANKNifty Robo Trading System (BnRTS ), is BANKNIFTY Index Future based Swing Strategy designed and developed by Daily Trade Mantra. This trading strategy is designed keeping in mind the upward movement (long position) and downward movement (short position) of BANKNIFTY indices. This systematic, disciplined and strategical approach makes it possible to capture the price movement in different market conditions and adjust to market scenario. No strategy can give positive return in every month or every quarter, neither we claim to offer the same. Our systematic disciplined trading and patience can lead us to a remarkable reward with a span of 5 Years.
We believe in consistent return, where our target is to beat Index’s performance and Index based Mutual Fund’s return, and we have successfully done that in this product. Considering last 5 years data, we have 39.33% winning rate with overall 134% net profit, of which 49% comes from long positions and 51% comes from Short positions. Maximum trade drawdown is 6.4% in long side and 2.8% in short side with overall 6.4% max drawdown. The results shown below is Tax and Brokerage adjusted.
Our Strategy have strict Stop Loss planned, which help us to limit our loss, however due to sudden gap-up and gap-down we may face more loss then the planned SL.
What is Algo Trading
Algo Trading is to generate Buy or Sell signals using a computer program, where the program is developed with pre defined conditions based on mathematical calculations, statistical modelling and market’s past performance.
Benefit :
- No Human intervention while generating Buy or Sell
- No Human emotions involve while selecting Target or Stop Loss
- Order can be placed to a Broker terminal by an Algo System
Drawbacks:
- Dependent on Computer infrastructure, hence if system goes down then no signal can generate
- No Action can be taken based on news or sudden market condition, which was not programmed
What is Robo Trading
Auto execution of algo based signals are called Robo Trading, where without any manual intervention orders can be placed by a computer program. The robo is nothing but a computer program, which helps executing the generated signals.
Benefit :
- No Human intervention while executing Buy and Sell signals
- No Human emotions involve while placing any order or exit from any order
Drawbacks:
- System dependency, infrastructure should be up and running to avoid any missing execution
Return on Investment
Based on current margin calculation, way back in 2014, initial investment for 1 Lot of Banknifty of 20’s lot (Then the lot size may differ, but our testing is based on 20’s lot) is Rs. 35,000/-. Total earning in 5 years is Rs. 4,70,000/- hence profit is Rs. 4,30,000/- . Average Annual profit is Rs. 4,30,000/5 = Rs. 86,000/- . Considering these assumption the return on investment Year on year in last 5 years is (86,000/35,000 =) 250% all approximation. Let us consider this as 225%.
Product Subscription Plans
This plan is for working professionals, housewife’s, who due to their time packed schedule can’t find time to watch market, do analysis and take positions, even though they are interested to generate extra income from the Stock market.
We have designed this BANKNIFTY index based Robo Trading Product DTM-BANKNifty-Robo-Trading-System (DTM-BnRTS) for you all. Where our Robo Platform shall not only Analyse the Index movement, it analyse the Index’s movement, generate the Buy and Sell signals and place the order in your Broker’s trading Account, which will be visible to you any time you want.
Investment is RS. 1,00,000/- (approximate) for 1 Lot of BANKNIFTY Future, in 2019. We do not consider trade in multiple lots to avoid any downside risk associated with it.
This is the most safest way of investment for any investor who doesn’t want to take any risk and want quarterly/ Annual recurring income. Please find below the Quarterly return you can expect based on our past performance test.
There are many Traders, who do not have algorithm system which generates automated signals. Creating customized Algorithmic system have huge cost involvement.
Our telegram Channel Signal sharing plan shall help them. In this plan we shall share the automated signals generated from NIFTY index based Robo Trading Product DTM-Nifty-Robo-Trading-System (DTM-NRTS) to our Telegram Channel.
Tradars have no obligation to create a Broker account through us, they can take position in their existing Broker Account as per the signals.
We do not restrict any traders on number of Lots, however we always recommend to take position only on 1 Lot, to avoid any unforeseen circumstances
5 Years Quarterly Return Table
Below result shows, red colored entries are losses and black colored entries are profits. This strategy had only 3 Quarter losses in last 5 years.
Year | Qtr 1 | Qtr 2 | Qtr 3 | Qtr 4 | Total Yearly |
| 2014 | Rs. 9,157/- | Rs. 27,651/- | Rs. -5,694/- | Rs. 18,733/- | Rs. 49,8485 |
| 2015 | Rs. 69,428/- | Rs. -29,346/- | Rs. 56,229/- | Rs. -15,106/- | Rs. 81,205/- |
| 2016 | RS. 52,063/- | Rs. 21,482/- | Rs. 17,132/- | Rs. -37,643/- | Rs. 53,034/- |
| 2017 | Rs. 37,385/- | Rs. 36,951/- | Rs. 21,498/- | Rs. 23,910/- | Rs. 1,19,744/- |
| 2018 | Rs. 71,543/- | Rs. 2,761/- | Rs. 48,563/- | Rs. 43,693/- | Rs. 1,66,559/- |
| Total Profit | Rs.2,39,577/- | Rs. 59,499/- | Rs. 1,37,729/- | Rs. 33,586/- | Rs. 4,70,391/- |
DTM-BnRTS Beat The BANKNIFTY Index Chart
Our objective is always to develop any strategy which can beat the underlying Asset, i.e. BANKNIFTY Index for this strategy. In this below Chart, we have shared how our DTM-BnRTS performed over BANKNIFTY Index in last 5 years. Our Strategy has beaten BANKNIFTY considerably. This chart shown cumulative profit accumulated from 1 Lot of BANKNIFTY Futures from 2014 till 2018, after adjusting the STT, Brokerage and other deductibles.
DTM-BnRTS : Quarterly Return bar chart
DTM-BnRTS : Quarterly return line chart
Amibroker Backtested Result
