overview of system trading in stock market and comparison of commodities gold and crude oil.

1. Name: Sakshi Ojha
Id: O-009
Roll no.: B1400054
Specialization: Finance

2. Company Profile
Jainam Share Consultants Pvt. Ltd. Was
incorporated in 2003.
It provides all types of services like equity
trading, derivatives trading, mutual funds,
etc.

3.  Jainam Commodities Pvt. Ltd. Was
incorporated in 2005 and is mainly
carrying on the broking business in the
commodity market.
 Jainam’s head office is Surat.
 The company has membership in NSE, BSE,
MCX, etc.

4. Industry Profile
 Capital markets are financial markets for
the buying and selling of long-term debt or
equity- backed securities.
A stock market or equity market is the
aggregation of buyers and sellers of stocks
(also called shares).
A stock exchange is a place or organization
by which stock traders can trade stocks.

5. Indian Stock Market
Indian Stock Market is one of the oldest
Stock Market in Asia.
Indian Stock Exchange:
Bombay Stock Exchange
National Stock Exchange
Calcutta Stock Exchange

6. Securities and Exchange
Board of India (SEBI)
SEBI was set up in 1988 to regulate the
functions of securities market.
SEBI promotes orderly and healthy
development in the stock market
SEBI is a body corporate having a separate
legal existence and perpetual succession.

7. Topic Profile
System Trading
A trading system is simply a group of specific rules,
or parameters, that determine entry and exit points
for a given equity. These points, known as signals,
are often marked on a chart in real time and prompt
the immediate execution of a trade.
 Basic tools for Trading :
Fundamental Analysis
Technical (Price) Analysis
News
Insider Information
Astrology
Intuitions

8. Technical Analysis
Technical Analysis is the study of market
action, primarily through the use of charts,
for the purpose of forecasting future price
trends.
Market action includes price, volume &
open interest.
Philosophy of Technical Analysis :
Market action discounts everything
Price moves in trends
History repeats itself

9. Charts
Charts are one of the most fundamental
aspects of technical analysis.
Type of Charts :
Line chart
Bar chart
Candlestick chart
Point & Figure chart

10. Candlestick
Charts
It is a type of financial chart used to
describe price movements of a secutiry,
derivative, or currency.
Each ‘candlestick’ show one day.

11. Commodity Market &
Commodity Exchange
A commodity market is a market that
trades in primary rather than manufactured
products.
 A commodities exchange is an exchange
where various commodities and derivatives
are traded.

12. Data Analysis
Data analysis is done from the data and
information collected from Jainam Share
Consultants Pvt. Ltd., Surat.
The data is collected after the back testing
in MS Excel.
Data is taken from the year 2009 to 2014.
Before doing the back testing optimization
was done using the software Trend Analyzer
by taking different moving averages.
The moving average giving maximum
profit/trade was selected.

13. Following result was
obtained after the back
testing of Commodity –
Gold.
Sr. no. Particulars Result
1 Gross profit/loss 12,171
2 Net profit/loss 8,966
3 Total trades 126
4 Winning trades 42
5 Losing trades 84
6 Probability in % 33.33
7 Max. cons. Loss 10
8 Max. cons. Profit 4
9 Duration in years 5
10 CAGR return in % 9
11 Max. DD 5,960

14. Following result was
obtained after the back
testing of Commodity –
Crude Oil.
Sr. no. Particulars Results
1 Gross profit/loss 6,229
2 Net profit/loss 3,866.53
3 Total trades 169
4 Winning trades 58
5 Losing trades 111
6 Probability in % 34.32
7 Max. cons. Loss 10
8 Max. cons. Profit 6
9 Duration in years 5
10 CAGR return in % 15
11 Max. DD 1,730

15. Conclusion
 Crude oil had more winning
probability as compared to Gold.
 Also Crude oil had less drawdown
than Gold.
 By comparing on actual basis i.e.
through CAGR (Compounded
Annual Growth Rate) it was found
that Crude oil had more CAGR of
15% than Gold which had CAGR of
9%.