Sir ,what is stock mock ?

@@ConceptualVigyan It is the backtesting platform for Banknifty and Nifty Future/Option Strategies

It would be good if the strategy can also be shared. Its not for copying the same strategy but to get a perspective

@@stockmock hindi me baat kare kuch word upar se ja rahe he

Thanks Harish

So nice of you Sagar

"Should we target higher Expectancy and R/mdd by giving up somewhat on ROI front ? " Depends on your requirement. If you feel you can manage going through higher DD (lesser RMDD) as a tradeoff for the benefit of having higher profit then go for it. Higher expectancy and RMDD generally means smoother equity curve. If your requirement is lesser volatility in your equity curve even if that means having lesser profit then go for this.

Also could you please tell about the entry time and exit..

Yes correct. If one does not want to hedge then can risk maybe 0.5% of capital per trade.

stay tuned we will

I execute using my python code interfaced with Zerodha Kiteconnect API

I execute through my python code interfaced with Zerodha kiteconnect APIs The strategies I presented are just example ones for demonstrating the significance of position sizing. I may or may not not trade the exact same rules.

You can check Stockmock KZfaq channel's playlists, you will find them.

@@aamodhk yeah aamodh, saw your KZfaq with Vivek. Did trial also. Fantastic. Saw kiru's face to face with Vivek sir. Was looking for platform to use auto bot now. Don't know how to go ahead. Stock mock is revolutionary

Return to Max Drawdown ratio

Max risk scenario (other leg SL getting hit) need not play out every trade. But position sizing needs to be done accounting for max risk scenario playing out any random trade. With the position sizing principle used, S2 gives much higher risk adjusted return than S1.

@@aamodhk I agree but the issue is that you are proposing that in S2 you can double the size of ur positions in S1, which seems incorrect to me. Risk in S2 is not exactly half, it will be comparatively lower than S1. If it would have been half, then the drawdown of S2 should always be half of S1, which is not the case. With all due respect if you'll think deeply about my point u ll realize what I am saying.

@@sannidhyaagrawal249 Yes correct, risk adjusted return in S2 is not exactly 2 times that in S1 when we normalize DD. It is 'k' times. 'k' turns out to be 1.87. I used the words double, half for simplicity sake. Explanation: DD in S1 is ~30k DD with 1 lot in S2 is ~24k DD with 2 lots in S2 is ~48k Lets say with the 1% risk position sizing on 10L capital, DD of 30k comes out to be 10% of capital. Then DD in S1 is 10% and DD in S2 is 16%. Risk per trade in S1 = 1% * (1-0.1) * 10L = 9000 Risk per trade in S2 = 1% * (1-0.16) * 10L = 8400 With DD normalized, risk per trade in S2 is lesser than 2x by a factor of k. So, position size of S2 is not exactly 2x of that in S1. It is (9000-8400/9000)x lesser than 2 times of S1. k = 2 (1 - ((9000-8400)/9000)) = 1.87