"My profit from trading is more than the salary of CEOs of Top Indian Cos": Ghanshyam

Discussion in 'Traders Corner' started by Michael Gonsalves, Jun 24, 2023.

  1. Michael Gonsalves

    Michael Gonsalves Member Staff Member

    Jun 26, 2016
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    "My profit from trading is more than the salary of CEOs of Top Indian Cos". Ace trader rakes in big money from a simple trading strategy. Back-testing shows that the strategy would have given a profit of Rs 4 lakh in one year on just one lot of Bank Nifty.

    Ace traders reveal profits but not strategy

    There are a number of successful traders on Dalal Street who periodically reveal their verified MTM gains. Some like Vijay Thakre indulge in quick-fire scalping in the Bank Nifty. He reported Verified Earnings Of Rs 2.16 Cr on Capital of Rs 1 Cr. Others like Team Anamika Algo specialize in automated trades. Anamika made Rs 32 crore in 12 months on capital of Rs 30 crore. Yet others like Bandi Shreyas indulge in selling of OTM penny options which become worthless at the EOD. Bandi effortlessly pocketed Rs 1.97 crore from this simple strategy (see Options Trader Reports Verified Earnings Of Rs 2.16 Cr on Capital of Rs 1 Cr. He Has Explained His Trading Strategy).

    However, these traders are understandably reluctant to explain their strategy in detail because if all and sundry implement it, the edge is lost.

    This is why Ghanshyam deserves to be appreciated because he has unhesitatingly revealed the nuts and bolts of his winning strategy.

    The strategy is called the "9.20 high & low candle" strategy. Essentially, one has to mark the high and low of the first candle. If the second candle breaches the high and low, we have to mechanically take the trade, with a small stop loss and a small profit target.

    The strategy works because there is extreme volatility in the morning session where the Indices surge or plunge in a violent manner, Ghanshyam said. If we can take even some benefit from this volatility, we can make money.

    Ghanshyam also revealed a variant of this strategy which is called the "2.20 high & low candle" strategy. This benefits from the volatility caused in the afternoon session when the European markets open for the day.

    "Meri profit India ke top CEOs se jyaada hai", he said with justified pride in his tone.

    Ghanshyam also stated that the simple strategy has yielded him a gain of nearly Rs 2 crore.

    Back-testing results show fabulous profits

    A vigilant youtuber nicknamed 'Investing Lab' has conducted a thorough back-test of the Bank Nifty Option 9:20 and 2:20 Trading strategy of Ghanshyam. The strategy yielded an incredible gain of Rs 4.21 Lakh on just one lot during the corona period of FY 2020-21. In later years, the gains were lower though still impressive.