ETFs positional cash trading plan

Reasons why want to become a consistently profitable trader ?

One Strictly prohibited to take ETF profits 40% payout IF

profit booked didn't follow the Trading plan rules, i.e. booking profits unmaturely by accessing zerodha terminal during market hours.

penalty of -₹5k

1. booked loss in any ETFs script
2. Accessed zerodha terminal during market hours
   (Only Exception is : only allowed for instant withdrawal)
3. Access ETFs current prices during market hours from google/NSE/misc. resources

Repayment will be deducted from one's personal

1. pocket money
2. savings

check market data from laptop only (after market closing)

part of good habbit and discipline

GTT order placement/update allowed only next day

because ETFs final closing prices are accurate by next day, as there is adjustment in i-nav as well

Encashing 10% profit opportunity in individual ETF

1. EXIT IF individual ETF having unrealized profit of >=10% using
   GTT OCO
    a. CLOSING + 0.25% TARGET,
    b. CLOSING - 0.25% SL
   (OR)
   GTT EXIT LIMIT
    a. Average buying price (fetch from console) + 10%
   
2. (Condition #1) && (After EXIT, Next Day after receving contract note)
   1. Reinvest in all 6 ETFs principal amount received by EXITING
      (OR)
   2. IF TIMEBASED EXIT && (taken loan from Zerodha Capital) then use principal amount to repay loan
   3. after deducting all transaction charges payout 40% of profits
   4. reinvest 60% profits invest in all 6 ETFs according to PORTFOLIO CAPITAL ALLOCATION STRATEGY

WEAKEST SCRIPT SELECTION CRITERIA

1. Unrealised reward >=2% AND <=3%
2. IF multiple ETFs falls between 2% to 3% then choose ETF with maximum invested amount
3. e.g.
   Out of 6 ETFs A, B, C, D, E, F
   
   1. 2% ₹4K
   2. 5% 45K
   3. 2.5% ₹12K
   4. 8.5% 91K
   5. 3% ₹45K
   6. 2.2% ₹91K

Following ETFs weak
A, C, E, F
Choose F because it having maximum invested amount

what to do when debt:equity > 50%
(Only allowed after, TIME BASED EXIT
(OR)
completion of Phase #4 of BORROWING STRATEGY )

UNPLEDGE, then EXIT the weakest script having (minimum return of >=2% ) && (Maximum capital allocation)

1. 1. EXIT Partially : IF partial EXIT is sufficient for loan repayment, otherwise EXIT 100%
   2. after market closes i.e. 03:40PM onwards, place the GTT OCO order as follows
      1. TARGET closing price + 0.26%
      2. SL closing price - 0.26%
      3. Refer: WEAKEST SCRIPT SELECTION CRITERIA
2. repay the loan amount to the zerodha captal
3. repeat the process till debt:equity ratio is >50%
4. For e.g.
   UNPLEDGE/choose the weakest script having minimum return of >=2% AND <=3% with maximum invested capital
   Script A : 7% ₹50k
   Script B: 6% ₹52k
   Script C: 5% ₹90k
   Script D: 9% ₹1.5L
   Script E: 2% ₹1L
   Script F: 3% ₹99K
   
   Weak are E, F but E is the Weakest. So, UNPLEDGE & EXIT Script E (2%)

Zerodha Terminal access allowed only after reading ETFs Trading plan

IF trading plan reading is pending THEN Strictly prohibited

1. Accessing Zerodha terminal
2. placing/editing GTT ENTRY/EXIT orders

Mode of Zerodha Terminal access

Laptop only

Maintain ETFs trades ENTRY price in journal, only after receiving contract note next day

thus helping in discipline re-inforcement

Zerodha Kill Switch to enforce disicpline
(IF GTT orders triggered AND kill swtich is active, zerodha automatically rejects the orders.)

IF zerodha terminal accessed during Market hours (09:00AM to 03:30PM) immediately activate kill switch in zerodha
once activated Zerodha disables it only after 12:00 hours.
Once deactivated, segments can only be reactivated after 12 hours and all orders triggered by GTT / Basket / Stock SIP will be rejected. One will not be able to trade in the deactivated segments until they are reactivated

How one can protect principal amount from oneself like today when holding M2M was -₹15k one sold everything in panic and tried to make ₹23k profit and at the end of day booked negative -₹36k"

1. Trade with one's own cash with the position one can comfortably take delivery
2. When in profit have patience till 10% of portfolio unrealized P&L TARGET achieved
   (OR)
   follow TIME based EXITs and Individual ETFs EXITs
3. When in confusion always take break and read trading plan
4. Always remember, one having strong faith in trading and giving 100% devotion to earn living from trading and for this needs principal amount to be protected and growing steadily, have patience, have faith in oneself, have discipline
5. Now there is an hedging opportunity as well from part of trading profits parked in FDPortfolioHedgingCapital this will help to protect one's precious capital and also gives peace of mind
6. Open Zerodha Terminal only after 03:40PM when equity markets closed.
7. Trade like nicolas darvas
8. Remember, one trading for rest of one's life, in a long run randomness shall work in one's favor and become a consistently profitable trader.

Trade like Nicolas Darvas by keeping terminal close during market hours

1. Only GTT orders to take entry/book profits.
2. terminal access only after market close from Laptop
3. market data access only after market closing
4. GTT orders to be updated only after market close.
5. maintain distance from market by accessing market only after day closing

Equity: After 03:40PM
Commodities: After 04:00PM

how to deal with one's fear of loosing running profits , say one trading with one's own principal amount having ₹0 taken as loan from zerodha captial and there might be +5% overall portfolio profit today and next week it might be -5%"

1. Refer WEEKLY EXIT CRITERIA INDIVIDUAL WEAKEST ETF , WEEKLY EXIT CRITERIA INDIVIDUAL STRONG ETF
2. Refer HEDGING CRITERIA
3. just wait for unrealizedf P&L to reach <=-7.5% , then follow BORROWING STRATEGY, stick with the process, one's job here is the perfect execution of one's trading plan, Reward is in hands of market
4. now just 10% is the max. target for overall and individual ETFs as well, feel relaxed now

One of one's Elephant ETF is not performing well one have invested around ₹1.29L and giving return just under 1% whereas gold has given return 11% plus can one take capital out of non performing ETF and put it into other assests?

Refer WEEKLY EXIT CRITERIA INDIVIDUAL WEAKEST ETF

When ETF trading with just one's own funds and there is profit of < 10% should one book them?

Can one book profit on a single script IF it showing 10% plus profit?

What to do when one's position in any script or multiple accumulated script profits start to decrease and there is chance of negative M2M?

Refer what to do when holding is in profit

what to do when holding is in profit?

IF Overvall portfolio is >=10%
  refer EXIT STRATEGY
ELSE IF for any individual ETF (unrealized return >= 7.5% ) AND (Shooting Star Candle formed on weekly timeframe at Friday/LastWorkingDayOfWeek)
  refer WEEKLY EXIT CRITERIA INDIVIDUAL STRONG ETF
ELSE IF 2 months have been passed still 10% return not achieved
  refer TIME BASED EXIT CRITERIA
ELSE
  Keep holding

What to do IF one buy ETF using loan currency at the top and there is -50% drop in portfolio from where one bought

Refer HEDGING CRITERIA , IFF one have sufficient capital in FDPortfolioHedgingCapital
Otherwise
Let broker liquidate the position

EXIT order type for Weak/Strong ETF

Use GTT OCO (one cancels other) order with

1. TARGET of closing + 0.26%
2. SL of closing - 0.26%

WEEKLY EXIT CRITERIA INDIVIDUAL WEAKEST ETF

Every Friday/LastWorkingDayOfWeek 03:40PM onwards, create GTT order to EXIT weakest ETF (100% of quantity) on Monday
How to EXIT
Refer WEAKEST SCRIPT SELECTION CRITERIA

WEEKLY EXIT CRITERIA INDIVIDUAL STRONG ETF
(unrealized return >= 7.5%)

Every Friday/LastWorkingDayOfWeek 03:40PM onward create GTT order to EXIT Individual Strong ETF Satisfying following conditions:
IF (any individual ETF unrealized return >=7.5% ) AND (on its weekly timeframe shooting star candle forms)

1. place GTT OCO EXIT order (refer EXIT order type for Weak/Strong ETF )
2. IF ETF is PLEDGED then try to UNPLEDGE maximum/100% quantity by pledging other ETFs as collateral with zerodha capital.

ELSE IF (any individual ETF unrealized return < 7.5% ) AND (On its weekly timeframe shooting star candle forms)
 refer HEDGING CRITERIA

After Weekly EXIT of Individual Strong/Weak ETF, What to do with EXIT Capital

IF any loan taken from zerodha capital
 THEN use 100% of capital obtained by EXIT of weakest ETF for repayment of loan.
ELSE
  next working day, reinvest 100% of capital recevied by EXITING weakest ETF, among all individuals ETFs having (capital allocation < portfolio allocation individual ETF percentage limit) , according to portfolio allocation strategy, using GTT orders closing + 0.26%

TIME BASED EXIT CRITERIA
Should one consider time based EXITs say TARGET of 10% not achived still more than 2 months have been passed and one still paying EMIs?

IF >= 2 months have been passed since:
 (Date when fresh ETF Trading Begins)
  AND
 (didn't get 10% return)
  AND
 (portfolio unrealized profit >=7.5%)
Only THEN
 EXIT 100% of the Portfolio according to one's EXIT STRATEGY
Then repeat the process i.e. Follow ENTRY STRATEGY and BORROWING Criterias

How to prepare for black swan event like Covid or 2008 housing crisis, in which there was more than 50% correction , in that case if one have taken loan from zerodha capital , one's principal amount would be vaporized?

Case #1 : Assuming one have capital in FDPortfolioHedgingCapital, then refer HEDGING CRITERIA
one has started payins of profits from mcx gold futures trading into FDPortfolioHedgingCapital as well, hope this will also helps one in hedging one's portfolio

Case #2: Not enough captial to HEDGE, then make sure one's debt:equity ratio is strictly <50%

Max allowed capital for hedging in FDPortfolioHedgingCapital

Surplus amount of profit must be invested in ETFs portfolio with Zerodha

Which broker to use for Hedging

Fyers

When to open account with Fyers for hedging?

For e.g. IF one having total ETFs portfolio of ₹5L then open account with Fyers iff one having FDPortfolioHedgingCapital worth ₹25k

one followed the trading plan split the principal amount 50% into gold/silver and remaining 50% into equity niftybees bankbees juniorbees and midcapbees, took entry according to trading plan and pyramid when there was positive 1%, today negative -3% M2M around -₹8k, one want to know as darvas EXIT the boxes using Trailng SL how about me, as one not willing to book loss on Index ETF trading as one want to protect one's precious capital, but one want to ask some solution, few days ago one's unrealized M2M was positive 1% around ₹2.7k and today its negaive -₹8k its too much, what is the solution?"

Refer : HEDGING CRITERIA

Which contract to choose for Hedging

choose next month contract

1. MCX goldpetal/silverMicro futures
2. ATM PE Next month Expiry for nifty/bankNifty/niftyNext50/midcapNifty

HEDGING CRITERIA

1. Hedging can be done when Weekly timeframe candle forms kind of shooting star and then one will wait for the candle to give closing.

2. Next week Monday on Fyers terminal, after 03:00PM IF LTP is below previous week shooting star candle LOW then allowed Hedging as follows:

   1. in case of Equity : buy ATM PE for Nifty/BankNifty/NiftyNext50/MidCapNifty
   2. in case of Gold/Silver : SHORT Gold/Silver

HEDGING CRITERIA FOR STOCK ETFS

In case of equity index ETFs only PUTS buying is allowed.
Buy Monthly Next Month ATM PE

HEDGING CRITERIA FOR GOLD/SILVER

Hedging of gold and silver is allowed by SHORTING equivalent amount of Gold/silver futures in MCX with FDPortfolioHedgingCapital.
Criteria is as follows:

1. Must have enough capital in FDPortfolioHedgingCapital for

   1. margin requirements to SHORT equivalent amount of GOLD/SILVER as in portfolio
   2. SL of weekly shooting star candle high + 3 points additional margin
2. Hedging is allowed in Fyers terminal only
3. SHORTING is only allowed in gold/silver because one allowed to SHORT equivalent amount of futures as one having delivery

Example:
one have invested ₹1.20L physical delivery of goldbees holding. Then one must short ₹1.20L worth of gold futures with SL above shooting star weekly candle high + 3 points and SL capital needs to be added in total margin computation assume

1. margin required for SHORT ₹1.20L of gold having 12 quantity is ₹12K and
2. SL of shooting star weekly candle high + 3 points is ₹5k, then total margin reqruied = ₹12k + ₹5k = ₹17k

HEDGE EXIT CRITERIA

Case #1 SL HIT (Weekly Shooting Star Candle High +3 points)
In case of SHORT GOLD/SILVER

Case #2 Potential Sign of Trend Reversal
on 15m timeframe, Market opens gap up and gives closing above yesterday closing price, IF so then next day one allowed to EXIT one's HEDGE around 03:00PM onwards

Case #3 Expiry auto square off
In case of ATM PUTS

1. IF Market keeps falling and its End of the month means Expiry of HEDGE then do nothing and let it be automatically be squared off by the exchange
2. OR allowed to manually EXIT after 03:00 PM

IMPORTANT NOTE: GOLD/SILVER SHORT positions hedges needs to be closed one week before expiry for better liquidity and avoiding mandatory taking physical delivery from exchange.

IS EXITING HEDGE AT LOSS ALLOWED

Allowed only IF

1. SL HIT in case of GOLD/SILVER
2. Expiry auto square off ATM PE for Equity
   (OR)
   one week (7 working days) before Expiry in case of GOLD/SILVER Futures

Can one borrow from zerodha capital to trade in MCX Gold Futures Intraday

Strictly Prohibited,
Only Profits money reserved in 📈 FDMCXGoldFuturesIntradayTrading only can be used

Borrow based on Trading capital in Zerodha only

for computation of debt : equity ratio for zerodha capital, equity is the Trading capital, holdigns in zerodha only

How to compute debit: equity ratio

IF current debt : equity ratio is x% then how much more currency one can borrow for
1. 50% debt : equity
2. 75% debut : equity ratio"

first find out current phase of Zerodha ETFs Positional Trading (is it, phase: #1, #2, #3, #4)
  ELSE IF phase #2 then max 50% of equity
  ELSE IF phase #3 then max 75% of equity
  ELSE ₹0

current phase of Zerodha ETFs Positional Trading

Borrowing from Zerodha Capital by pledging ETFS is allowed only when

1. 100% of principal amount is invested in all 6 ETFs according to Trading Plan
2. 100% of purchased ETFs are transferred to one's demat account and elegible for pledging

BORROWING STRATEGY
so that one having higher probability of getting 10% returns faster

PHASE #1, Invest Own Capital
 first invest 100% of one's own principal amount in ETFs according to percentage of each ETF in portfolio allocation strategy

PHASE #2, Take Loan from Zerodha Capital (maintain debit : equity = 50%)
 when (portfolio unrealized P&L <= -7.5%) then keep taking loan for ETFs investments from zerodha capital till debit : equity ratio is <50%

PHASE #3, Take another Loan from Zerodha Capital (maintain debit : equity = 75%)
 when (debt : equity ratio = 50%) AND (overall portfolio >= 1%) then
  IF TIMEBASE EXIT limit has passed THEN
   EXIT the weakest ETF acccoring to WEAKEST SCRIPT SELECTION CRITERIA
  ELSE
   once again start taking loan for ETFs investments from zerodha capital till one's debt : equity ratio < 75%

PHASE #4, Gradual Loan Repayment to Zerodha Capital (debt :equity restore to 50%)
 when (debt : equity touched 75%) then
   a. start EXITING Weakest ETFs and repay zerodha capital loan currency till one's debt: equity ratio is > 50%, for EXITING weakest ETF allowed to EXIT daily or weekly iff satisfying WEAKEST SCRIPT SELECTION CRITERIA
   b. once it reached 50% refer EXIT STRATEGY
now this way one having the strongest performing ETFs and would help one get 10% returns faster

PHASE #5, TimebasedExit Triggered, Urgent Loan Repayment to zerodha capital (maintain debt : equity to 0%)
 a. start EXITING Weakest ETFs and repay full amount to zerodha capital. for EXITING weakest ETF allowed to EXIT daily or weekly iff satisfying WEAKEST SCRIPT SELECTION CRITERIA
 b. when debt : equity reached 0% then follow keep holdings intact and follow TImebased EXIT strategy by waiting for 7.5% ROI then EXIT

Important Criteria that needs to be fulfilled before taking Loan:
make sure that zerodha capital loan contract end length is >=3 months i.e. one need more than 3 months period minimum to repay the entire loan amount, otherwise request for new of loan and get 12 months period for repayment

When EXITING a ETF position in profit
&&
have taken loan from zerodha capital
&&
(debt : equity > 50%) || (It's timebased EXIT)

1. Pay 40% of profit to oneself, 60% keep in zerodha as mentioned in How to Split Profits under MONEY MANAGEMENT STRATEGY
2. With 60% profits buy ETFs as mentioned in POSITION SIZING & PORTFOLIO CAPITAL ALLOCATION STRATEGY
3. Repay back to zerodha capital the principal amount received by EXITING position

When having opportunity to UNPLEDGE security in zerodha capital to reduce loan amount IF one's collateral is appreciated which security to UNPLEDGE one with 10% haircut or one with 20% haircut.

refer EXIT STRATEGY WHEN 10% TARGET ACHIEVED , RISK MANAGEMENT STRATEGY

borrowing by pledging from Zerodha capital is allowed only when

1. 100% of one's principal amount is invested in all 6 ETFs according to one's trading plan
2. once trigger of -7.5% portfolio dropped only then allowed to borrow. once borrowed currency from zerodha capital and is 100% invested in all 6 ETFs, only then next series of borrowing allowed

Example (Not allowed because 100% of PrincipalAmount/BorrowedZerodhaCapital not invested yet : )
Assume, one have invested 25% in goldbees, 12.5% in bankbees, 12.5% in juniorbees, 12.5% in midcapbees
Still PrincipalAmount/BorrowedZerodhaCapital is left for investment in niftybees and silverbees, because GTT were (not triggered)/ (triggered but not filled)

When to UNPLEDGE holdings in zerodha capital

PLEDGE/UNPLEDGE mindfully, only when absolute necessary according to one's trading plan rules, as pledging/unpledging charges are very bad

Caution : Zerodha Capital charges UNPLEDGE charges for all sub parts of single ETF Scripts

it's very bad zerodha capital charges PLEDGE and UNPLEDGE of individual units not as whole
Say there 7 instances of silverbees when one tried to UNPLEDGE then one was charged for all of them ie. ₹40 x 7,
same thing happens IF taken topup 7 times with those instances, so its double slap with processing fee

Next time be aware and only do pledging mindfully because to UNPLEDGE one have to repay as well.

taken loan from zerodha capital for ETF Trading, kindly guide

First of all one have to pay monthly EMI to zerodha before 7th of each month, EXIT weak ETF partially for EMI Payment (Refer ZERODHA CAPITAL EMI REPAYMENT CRITERIA )
There is also chance that near the end month of loan tennure and one buy ETF using loan currency at the top and there is 50% fall in portfolio from where one bought just PLEDGE more holdings to cover it. or EXIT according to shooting star candle IF any ETF already in profit of >=7.5% (Refer EXIT/Hedging Criterias)
Now here is the strategy

1. for monthly EMI payment refer ZERODHA CAPITAL EMI REPAYMENT CRITERIA
2. Payin 100% of one's principal amount to Zerodha ETF Trading Account & buy ETFs as specified in ENTRY STRATEGY
3. IF one's portfolio drops by <= -7.5% then Borrow from zerodha capital according to one's BORROWING STRATEGY
4. maintain debt:equity ratio < 50%
5. HEDGE (SHORT gold/silver, ATM PE Monthly Nifty/BankNifty/NiftNext50/MidCapNifty) according to HEDGING STRATEGY
6. EXIT according to one's EXIT STRATEGY

what is the max loan amount one can borrow from zerodha Capital

Keep debt:equity ratio < 50%
(there haircuts involved and RBI also recommend max of 50% but in one's case this 50% is too much as there 20% haircut as well. So this is the max i.e. max 50% allowed) of principal amount in zerodha after subtracting loan amount pay in to zerodha. However one can borrow upto 75% and then needs to gradually reduce the portfolio by EXITING weak ETF and repaying back to maintain 50% debt:equity ratio as mentioned in BORROWING STRATEGY

How much loan one allowed to get = (Own Principal Amount) * 50%
Own Principal Amount = Total Principal Amount in Zerodha - Loan Taken from Zerodha Capital

can one borrow more from zerodha captial for pyramiding, one's current debt:equity ratio >= 50%

refer BORROWING STRATEGY

want to take ₹30k from zerodha capital for gold futures trading but this would lead to debt:equity > 50%, what to do?

Strictly Prohibhited

What IF one didn't make 10% a year and ends up -10% after including expenses of EMI payments to zerodha capital and transaction charges"

one just loose 10% that year, this is good thing because iff one having track record of earlier booking 10% profits TARGETs and this only take one of one's profits approximately. repeat the process, invest 100% of one's remaining principal amount and IF one's portfolio is <=-7.5% then take loan from zerodha captial equal to 50% of debt:equity and reinvest it for 10% overall portfolio profit TARGET.

one has also added precautionary measures :

1. time based EXIT of 2 months with just >=7.5% unrealized portfolio return
2. Weekly EXIT of individual ETFs based on weakness such as shooting star candle in case of ETF already having >=7.5% profit
3. Weakest ETF EXIT on weekend having 2% to 3% return only

what to do when one's holdings in negative m2m

IF overall portfolio is negative by <= -7.5% then take loan from zerodha capital and do averaging
IF one having hedging capital in FD then make sure to have portfolio hedged accordingly

Additionally Refer EXIT Criteria for time based EXIT, weekly EXIT of weak/strong ETFs

IF zerodha capital EMI payment made from FDEmergencyFund or pocketMoney

THEN from FDTradingExpenses, it must be repaid back to FDEmergencyFund or pocketMoney

How to compute Monthly EMI

ZERODHA CAPITAL EMI REPAYMENT CRITERIA

IF Overvall portfolio is >= 10%
 refer EXIT STRATEGY
ELSE IF for any individual ETF (unrealized return >= 7.5% ) AND (Shooting Star Candle formed on weekly timeframe at Friday/LastWorkingDayOfWeek)
 refer WEEKLY EXIT CRITERIA INDIVIDUAL STRONG ETF
ELSE IF 2 months have been passed still 10% return not achieved
 refer TIME BASED EXIT CRITERIA
ELSE
 Keep holding

What would happen IF one borrowed more than one's principal amount or PLEDGED ETFs bought using loan to get more loan

Zerodha would not let one sell any holdings IF LTV < 45% and would liquidate all of one's PLEDGED holdings IF threashold of 50% plus reached, and might consider one as defauter as he would ask for payin before the liquidation and IF not provided, Zerodha Capital might not consider offering one loan amount next time, so be cautious and keep the debt to equity ratio under 50%

Here is somewhat mathematical proof :
one has to maintain zerodha capital LTV(Loan to value Ratio). one have to maintain LTV below 50% and IF it goes above 50% then one have to pay in to zerodha capital, and also IF it goes above 60% they will automatically sell one's PLEDGED holdings at loss.

Now IF one took loan, buy ETF and PLEDGE them as well to get more loan and in worst case scenario there is 20% portfolio drop and also it's near end of 12 months loan tennure then they would not allow one to sell PLEDGED holding till one repay their principal amount. To UNPLEDGE one's LTV ratio must be within the permissible limit of 45%. Means they will ask one for more payin or more pledging. So follow the rule that max allowed limit of borrowing is 45% of one's principal amount which is one's hard earned Salary or trading profits."

IF one's 10% TARGET isn't achieved and there just 15 days left for zerodha loan agreement to expire?

When 15days left for full loan repayment to zerodha capital, start EXITING the position and repaying back to zerodha capital even in loss. start over process according to ENTRY STRATEGY

What to do IF portfolio is down <=-7.5% and Zerodha Capital loan agreement is about to expire in next two month?

First apply for new contract from zerodha so that one have atleast 12 months buffer, IF they do not approve then let it be, as one here to protect one's precious capital and market can go down alot then one can imagine and one need minimum of 3 months buffer by zerodha captial loan closing and repayment

Refer: IF one's 10% TARGET isn't achieved and there just 15 days left for zerodha loan agreement to expire?

When one's 10% profit TARGET achieved, should one pay 100% of the loan amount taken and close the loan with zerodha capital?

IF < 3 months remaining for loan contract to expire then close the loan by repaying 100% of loan amount and interest.
ELSE just pay the 100% of outstanding principal amount, interest and keep the loan active by keeping any single ETF, #1 quantity PLEDGED.

one concerned about one's 10% profit TARGET, say one achieve 10% profit TARGET and then one buy again at the top and it might be possible for next 6 to 8 months market stays below one's entry price, then after booking 10% profit TARGET what should one do with one's principal amount?

1. keep invested in market not matter it is at moon or earth,
2. IF there is correction and one's entire portfolio is <=-7.5% then
   1. take loan from zerodha capital iff there more than 3 months for contract to end, then do averaging,
   2. otherwise reqeust zerodha capital to renew of contract so that one get 12 months period for repayment

one has taken loan from zerodha capital for ETF trading, every month one have to pay emi, at the end of loan tennure how can one know exactly whether made any profit from loan capital or not?

1. maintain two columns in trading log, one telling percentage of one's own capital deployed another percentage of loan capital deployed and from the p&l column one can compute two another columns one for p&l deployed capital, another p&l for loan capital.
2. keep track values in separate sheet, one's own deployed capital and loan capital.

When fresh principal amount received (father, shop, EYFs 60% profit)

IF topup loan taken from zerodha capital,
  THEN repay using principal amount this way the ETFs already bought by loan capital are now one's owned.
ELSE
 Reinvest in all 6 ETFs according to portfolio allocation strategy %

Every new single ₹1 goes first to ETFs trading capital

whatever fresh currency one recieves from parents, relatives, taken credit needs to be invested in ETFs as principal amount, only 40% profits payouts from ETFs positional cash trading is allowed to spend on expenses, tiding, miscellanous activities.

When to payin Fyers with FDPortfolioHedingCapital

Only When capital in Fyers < 20% of (portfolio holdings + cash in zerodha)

What to do with the profits made in Fyers account by Hedging

Whenever hedging position makes profit
IF any loan taken from zerodha capital
 THEN 100% of profit payout goes to loan repayment
ELSE
 a. Keep 40% in Fyers/Hedging account
  IF Fyers Capital > 20% of (portfolio holdings + cash in zerodha)
   THEN payout to FDPortfolioHedgingCapital
  IF FDPortfolioHedingCapital > 20% of (portfolio holdings + cash in zerodha)
   THEN payin to zerodha for ETFs positional Trading
 b. payout 60% to zerodha for ETFs positional Trading

When EXITING individual ETF according to RISK MANAGEMENT STRATEGY make sure to deduct from profits the expenses (transaction charges/ Zerodha capital emi or processing fee)"

So here actually one need to keep record of two dates

1. Date when fresh ETF trading begins
2. Date till trading expenses and transaction charges covered from profits.

(one maintaining these dates in Financial Statement)

Consider yesterday date for computing trading Expenses?

when computing trading expenses consider yesterday date. As there might be any trades executed today whose expenses might not have been included yet.

profits payout will be made only after receiving contract note.

this way one got correct EXIT price and charges till yesterday.

Why one targeting 10% of overall portfolio profit

Compounding ₹4.52L (10% ROI), only 26 times:

1. Principal amount will be: ₹20.56 Lakhs (considering just 60% of profits reinvested)
2. ₹10.07 Lakhs will be already taken as 40% profits payouts
3. it gives peace of mind as 10% is achievable, considering now also allowed individual ETF EXIT for profit booking IF having unrealized profit of >=10% using GTT OCO order

How to Split Profits

🌳First deduct from Total profit, the EMI amount given to the zerodha capital, and keep it in the Zerodha, remaining account split into 60% and 40%
60%🌳Keep in Zerodha, thus increasing one's net Worth
40% of the profit split into following equal parts:

1. 💰FDEmergencyFund
2. 💰PocketMoney (keep as cash in IDBI, PNB)
3. 💰 FDSavings
4. 🎁 FDPocketMoney(mother)
5. 🎁 FDLoanRepayment(mother)
6. 🎁 FDPocketMoney(wife)
7. 🎁 FDFoodNature(plantsBirdsAnimalsCreatures)
8. 🎁 FDMedicareNature(plantsBirdsAnimalsCreatures)
9. 🎁 FDMedicare(wholeFamily)
10. 🎁 FDHouseholdExpenses(foodMiscellaneous)
11. 🎁 FDHealthInsurance(wholeFamily)
12. 🎁 FDWorldTour
13. 🪙 GoldSilverETFs DigitalGoldSilverETFs
14. 🪙 GoldSilverETFs 21BighaLandResidenceOrchard
15. 📈 FDETFsCashPortfolioHedgingCapital
16. 📈 FDMCXGoldFuturesIntradayTrading
17. 📈 FDTradingExpenses
18. 📈 AdulteryBurnedCurrencyRecovery

Explanation :
60% of whatever profits one make will keep into zerodha and Rest 40% of the profit split into following parts:

1. One part goes into Emergency Fund, so that in case of emergency one can have backup liquid cash
2. One part goes into Pocket Money
3. One part goes into Savings like buying one's favourite cycle with all accessories, books, laptop, anything.
4. One part goes to mother as pocket money
5. IFF Loan taken from mother then, One part goes to repayment of loan
6. One part goes to wife as pocket money, IF unmarried, to be handed over to wife, one month after marriage
7. One part goes for FoodNature (plants, birds, animals, creatures)
8. One part goes for MedicareNature (plants, birds, animals, creatures)
9. One part goes for FDMedicare(wholeFamily)
10. One part goes for household expenses like groceries, electricity, internet, LPG cylinder, bike fuel, detergent, medicines etc.
11. One part goes for HealthInsurance whole family
12. One part goes for World Tour
13. One part goes into DigitalGoldSilverETFs . later to be converted into physical gold, silver when enough to purchase 1kg silver, 20gm Gold
14. One part goes into 21BighaLandResidenceOrchard. open access to all creatures, having fruits trees, vegetables, herbs, clean running drinking water. when enought to purchase 21 bigha land these gold silver ETFs needs to be transferred into sellers account or conversion into physical cash after paying taxes
15. One part goes into ETFsCashPortfolioHedgingCapital. for buying ATM Montly PE for (Niftybees, BankBees, JuniorBees, MidcapBees), Hedging by SHORTING equal amount of MCX Futures(Gold, SIlver)
16. One part goes into MCXGoldFuturesIntradayTrading
17. One part goes into TradingExpenses
18. One part goes into AdulteryBurnedCurrencyRecovery (RepayToZerodhaETFsPrincipalAmount)
19. Emergency Fund (FFG) belongs to
    1. Father (50%)
    2. Futtu (25%)
    3. Goli (25%)
    Anytime currency required by them use this FD

mother minimum payout is ₹3k

keep accumulating her share of profits in FD Tiding mother till ₹3k threshold reached and then swap with Physical Cash and make her payout.

How much mininum principal amount to keep in Zerodha for ETFs GTT orders buying

1. 90% keep in zerodha for positional ETFs trading
2. 10% keep in Upstox for Gold Future intraday trading IFF disiciplines by risking < 0.89% per trade

What IF one broke one's rules and loose one's principal amount

take full responsibility of one's actions, now only one will protect one's principal amount and grow with it, or hahah will suffer miserably for one's own negligence, one will protect one's principal amount and make it grow via compounding

Why one doing cash trading only

to protect one's principal amount and grow it steadily by 10% compounding

EXIT order type

GTT LIMIT

EXIT Order
(TARGET/profit booking)

GTT OCO having two legs

1. TARGET CLOSING + 0.26%
2. SL CLOSING - 0.26%

EXIT STRATEGY WHEN 10% TARGET ACHIEVED?

1. EXIT Weakest Scripts first having lower percentage return
2. IF multiple ETFs having same unralized return then choose one having highest invested capital among two
3. IF loan taken from zerodha capital then use 100% of principal amount from EXIT to repay loan
4. Use 60% profits as well for loan repayment, get 40% profits payouts as mentioned in How to Split Profits

For e.g.
Six ETFs with capital allocaiton as follows
A : (₹40k, B, : ₹40k C : ₹90k, D : ₹90k, E: ₹65k, F : ₹65k)

Day #1 (10% overall TARGET achieved)
A : 35%, B: 18%, C: 10%, D: 22%, E: -3%, F: 5%
First EXIT E (-3%) then EXIT F (5%)

Important Note: as one have taken loan from zerodha capital by pledging one's secuirities, one would not be able to sell them all at once, without first unpledging them by repaying loan to zerodha capital and it might take 2-3 days for currency to be credited to one's bank account then repayment of zerodha loan then unpledging of security and able to EXIT, at that time the overall return percentage might have changed so keep mind to EXIT first lower percentage Reward scripts as they the one who might turn downside so first EXIT those scripts, no matter IF they in negative just EXIT them first.

Day #2 (after securities UNPLEDGED by repaying loan payment to zerodha capital and ready to EXIT), now due to randomness return might vary, just EXIT no matter what now 10% return figure is insignificant just EXIT
A : 30%, B: 10%, C: 10%, D: 18%
EXIT first C(10%) then B(10%)

Day #3 (after securities UNPLEDGED by repaying loan payment to zerodha capital and ready to EXIT), now due to randomness return might vary, just EXIT no matter what now 10% return figure is insignificant just EXIT
A : 35%, D: 21%
EXIT first D(10%) then A(10%)

Well Done, one proud of oneself for being disciplines in overall achiving TARGET of 10%, thank you for perfect execution of trading plan.

Can one EXIT 100% of one's portfolio when unrealized profit >= 10%

Allowed

Max. allowed investment in Commodity ETFs
(Goldbees, Silverbees)

50% of the principal amount

Max. allowed investment in Stock ETFs
(Niftybees, bankbees, juniorbees, midcapbees)

50% of the principal amount

PORTFOLIO ALLOCATION STRATEGY
Max. allowed investment per script

Commodities
Goldbees 25% of principal amount
Silverbees 25% of principal amount

Stocks
Niftybees 12.5% of principal amount
Bankbees 12.5% of principal amount
Juniorbees 12.5% of principal amount
Midcapbees 12.5% of principal amount

Trim ETFs excess holdings

IF (holding % in any ETF is greater than max allowed limit)
AND
(Unrealised return is >= 2.5%)
THEN
 EXIT excess holdings using GTT order
Note: one also allowed to place GTT order to EXIT holdings when unrealized return reaches 2.5% of average entry price

Next day, Reinvest the proceeds in ETFs whose investment amount is less than the maximum allowed investment according to capital allocation strategy.
E.g.
Total principal amount: ₹4.72L
Current scenario:
ETF investment% UnrealisedP&L%
Silverbees 0%
Goldbees 5% 1%
Niftybees 30% -0.5%
Juniorbees 30% 3%
Bankbees 30% -3.5%
Midcapbees 5% -1.5%

Then
EXIT juniorbees (30% - 12.5%) = 17.5%
EXIT 17.5% out of juniorbees and next day Reinvest in
Silverbees, goldbees, midcapbees

Invest in such a way that maximum amount invested and keeping individual ETF maximum portfolio allocation percentage investment limit intact
I.e. 25% max for goldbees, silverbees
12.5% for mid150bees

Now IF requires to develop calculator for this then develop
( or )
compute manually.

When to place new GTT ENTRY/EXIT Orders

Next Day 04:00AM to 09:00AM

ENTRY order type

GTT limit

How to took ENTRY

place GTT at daily closing + 0.26% of the ETF script

What to Ask oneself before taking new position

how can one perfectly execute one's trading plan rules

How to make step wise entry in position

1. Just invest 100% of one's own principal amount same day according to investment percentage, IF there is gap up and some of the scripts not filled then try next day after market closing.
2. When one's portfolio is negative under <= -7.5% and have taken loan from zerodha capital assuming contract is still having more than 3 months to repay loan, then PLEDGE the portfolio and again invest 100% of the loan amount same day according to one's position sizing criteria.

Refer BORROWING STRATEGY

can one average in loosing position

Allowed
as specified in BORROWING STRATEGY , RISK MANAGEMENT STRATEGY

can one pyramid in profitable position

Allowed
as specified in BORROWING STRATEGY , RISK MANAGEMENT STRATEGY

Can one write covered calls for hedging

Strictly Prohibited
Reasons:
F&O isn't allowed in Zerodha, and with other brokers one don't have portfolio for margin PLEDGE, so just stick with buying ATM PE for hedging

Can one PLEDGE holding for loan repayment EMI?"

Strictly Prohibited,
EXIT the weakest among two ETF partially for loan repayment

Today one opened the terminal during market hours 03:25, took manual random entry for goldbees and disregard GTT and one's previous day plus .26% rule. worst take could be today be panic selling in market and one might have existed all the positions or headless chicken trading. what to do , what is the solution to correct this so that in future, access to Market Data/Zerodha terminal during market hours be strictly prohibited.

Strictly prohibited to open during market hours

1. NSE/BSE website
2. Zerodha
3. Zerodha Capital

Take responsibility of one's actions as one have to protect one's precious capital, IF GTT for goldbees wasn't triggered that might be good for one as tomorrow there might be correction in goldbees. So kindly follow the trading plan and one only allowed to open terminal after 03:40 PM for equity and 04:00PM for commodities.

Can one access terminal OR place orders from smartphone

Strictly prohibited

Can one PLEDGE holding for INTRADAY trading?

Strictly prohibited

Can one SHORT on INTRADAY using cash

Strictly prohibited

Can one EXIT Delivery holding at loss

Strictly prohibited

Can one do INTRADAY with broker currency

Strictly prohibited

can one do tiding all OR part of principal amount to wife/mother/nature

Strictly prohibited

can one spend principal amount on oneself or in case of emergency

Allowed only in case of life or death situation,
otherwise Strictly prohibited"

can one spend principal amount to buy ATM options for hedging

Strictly prohibited

can one spend principal amount to trade index futures and options

Strictly prohibited

can one check ETFs prices during market hours from NSE website?

Strictly prohibited

Is one allowed to do INTRADAY trading in Zerodha and can one short sell or take leverage from broker or mtf on delivery?

Strictly prohibited
Zerodha is meant for cash only ETF trading where one can only pyramid ETFs which in profit. or average when one's overall portfolio is down by >= -7.5%

MTF/Short sell/intraday leverage?
Strictly prohibited in zerodha

Am one allowed to do CNC buying intraday?
strictly prohibited as one's profits TARGET 10% of one's principal amount and one have max investment limit per script so INTRADAY cnc not allowed.

can one spend principal amount for gold futures trading or commodity trading

Strictly prohibited,
Allowed Iff Only allowed iff one have shown discipline in last 100 trades by keeping one's risk per trade under -0.90%, then just max 10% of one's net worth amount is allowed to be given for MCX Gold Futures trading (some part of this currency to be taken from FD reserved for MCX Gold Futures trading and Remaining one can take from Principal Amount)

Keep individual ETF exposure under maximum allowed portfolio allocation percentage.

IF position in any ETF is greater than max portfolio allocation AND current ETF is in +2.5% unrealised profit then partial EXIT quantity to balance exposure to maximum allowed investment percentage.

What to do with the Partial EXIT capital?
Case #1 IF top up loan taken from zerodha capital THEN use 100% of partial EXIT capital to repay loan amount to zerodha capital.
Case #2 ELSE reinvest amount equally in all six ETFs according to portfolio allocation strategy

For example.
ABC ETF max. Allowed capital allocation is 12.5% and 14.5% is at present allocated AND ETF is having unrealised profit of +2.5% then partial EXIT to make to 12.5% capital allocation.

always keep some ETF quantity while EXITING

example, IF for any ABC ETF, total quantity are 1137, then EXIT only 1130 quantity
min quantity to keep #1
max quantity ot keep #9

After reading trading plan,
IF (there is no electricity) &&
(there are pending GTT orders creation/update) THEN

Allowed to access zerodha terminal by turning laptop on via UPS mode and place/edit GTT orders

Instruments To Trade

1. GoldBees
2. SilverBees
3. NiftyBees
4. BankBees
5. JuniorBees
6. Mid150Bees

Why one having devotion towards trading

it's the only professional which gives one opportunity to have financial freedom and accumulate wealth, have freedom of time, and be one's own boss, equal opportunity to make wealth

What to do when GTT order triggered but not fulfilled as price moved higher and eventually order got cancelled at end of the day

it's part of the game, repeat the order for the next day after market closing

Timeframe for observing markets

Weekly

one also doing MCX Gold futures INTRADAY trading, for backtesting can one open ONLY Upstox account during market hours?

okay allowed, but make sure to open zerodha terminal only after market close preferably after 03:40PM

When to Review this journal

Anytime

When to modify GTT orders and make any transactions to zerodha

after market closing 03:40PM onwards