The Nifty remains in a trading range between 5120 and 4920. The Index cannot remain inside such a narrow range for much longer. We have already seen two months of range bound movement.
Which way will the price go? The asnwer is easy: We do not know. So we should let the market tell us if it wants to go for another correction , or it will eventually move above 5120 to scale new highs (in this up move).
Does mechanical trading make money? Think of mechanical trading as disciplined / systematic trading. It makes money, there is no doubt about it. Our day trading system is an example. The system was making money in the beginning of the month, then fell toa litttle above breakeven, and today, recovered to end up the month with a decent gain, also the month high.But such trading requires so much discipline that it is difficult to trade for most people. n the other hand, October was a spectacular month for our swing systems but they ended November at breakeven. What this means is that just one day - today contributed all the profits of the two systems for the month. Yes, that's the way it is, sometimes.
I will be in Jodhpur on Saturday, Nov 28, for he CNBC Investor Camp. Any reader living in that area is welcome to meet me in Jodhpur.