My trading system

Trading System

(26-04-26)

For a system trader, it is important that the plan for the financial year is made at the start of the year. Plan should have the the approx. amount of profit which is targeted for the year, kind of strategies to be executed, and capital allocation to the strategies, maximum draw down expected during the year etc. This plan should be based on the back test of the strategies. 

Now the more complex a strategy is, more the actual results will deviate from the back test. Simplest strategies are the ones without stop loss where you take some position and carry it over. However these kind of strategies can cause huge losses so it is must to keep stop-loss. The more complex strategies are ones where you keep taking positions after hitting stop-loss a certain number of times. 

My plan for FY26-27 is targeting a return of 12% (without considering brokerage & charges). Assuming 20% of brokerage & charges, net targeted return is 10%. Also my target is to make 20 lakhs as net profit so I am going to keep my margin as 2 crore. Here point to note is that this is margin but not pure cash. Margin is arrived at by pledging the Shares/MF holdings at broker level. 

Plan for FY 26-27 based on back testing can be seen at Plan - FY26-27

Now a plan is just a start. During the year the situation might change. Some strategies might stop working and some new strategies would have to be devised to replaced them. We will be seeing that as the months goes by in this year. 

<<<Updates as of previous dates>>>

Below is the link of the excel which has the combination of strategies with MDD <= 2% based on back testing results as of 13-Feb-26 without considering brokerage and taxes. This basket is being traded live by me.

Back testing basket link

You tube video talking about same

Stock Mock Basket link for all the strategies combined (Can be referred to understand the strategies) Link to Stock Mock basket (This link is not updated as of now)

PnL details for strategies ( As of Feb 2026)

Strategy PnL Details

One question which I generally get is I have certain amount for trading and which strategy should I go for?

Answer to this is not straight forward. It depends on individual's risk appetite. 

First go through all the strategies' individual pages as available in arunstrategy.blogspot.com and see what is their return, what is maximum loss amount per day and what is maximum consecutive loss days. Now assume that you can have maximum loss per day for maximum consecutive loss days while running the strategy and see if you can take that much drawdown and still continue running that strategy.

If yes then it is the strategy you should pick. Also try to find more than one strategy which you can run based on your risk appetite (if your capital permits) and go with them. It is better to diversify capital across multiple non co-related strategies.