Saturday, 28 February 2015

Strategies to follow

So what is the way out or what should be your preferred trading strategy? Make a list of stocks say NIFTY 50 or NIFTY Jr (preferred) and then trade all breakouts. Limit risk per trade to 1% of your trading capital. 

Second strategy - make a list of 100-200 stocks based on liquidity. Then trade long signal wherever a stock gives a breakout above 6 month high or makes a 52 week high etc. The downside of this approach is you will miss stocks which generate a rally from the 52 week low (for eg., RCOM gave a 75% return in one month APRIL 2013 and thereafter did nothing) .

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Short Term Strategy

Nov 2014 Recommanded.


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Option Trading Strategy

Technical Analysis Hindi

I am having a simple option trading strategy but do your own research and do paper trading before start trading using this method, because it could bring some loss.

When the market opens wait for atleast 15 minutes then find which option open interest % is high . for example, if the market price is in 5420 find whether the 5400 put option open interest % is bigger than 5400 call option open interest %.

which % is bigger ? buy that option. example in detail : Today morning nifty was at 5410 in the first 15 minutes, at that time the 5400 put option open interest % was at nearly 10 % but the 5400 call option open interest was at just 3 % , so you should buy 5400 put option at that time, when the market closed in the evening ,there was a big profit to book.

 http://www.tradersir.com/nifty.html
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Lightbulb INTRADAY Trading Strategy on NIFTY FUTURES (only)

Intraday, Simplest Trading System � ONLY NIFTY FUTURES.. 

Hello friends,

After long time I�m back in to Markets, Tradeji and Intraday Trading.

Would like to share a small and very effective trading strategy which I am following since last 1 month. Please note that this system works well only with NIFTY Futures ( though I haven�t tried anything else as I trade only in NIFTY Futures). I have not back-tested this system as I don�t have enough data as of now. I would appreciate efforts by veteran members to convert this system in to AFL, which will benefit everyone out there.

Basic set up : 5 Minute NIFTY FUTURES Chart with 1 day backfill.
RSI : 7 period RSI below price chart (Signal line not required) with 75 (overbought) and 25(oversold) lines.
ATR : A 10 period ATR for stop loss.
Risk-Reward � 1:1 or Follow trailing stop loss method.
Note : No fresh trade till 9:30 am or after 3:15 pm.


BUY Signal � After a sharp sell off, when market enters oversold zone (i.e. RSI below 25 reading), stay tight & ready (BUT DO NOT ENTER in to the TRADE right now). I have seen RSI falling to single digit. Once Market is coming out of oversold on candle close basis (do not trade while candle is still forming), Buy above high of that candle after adding 2 points as filter. Stop loss will be 2x ATR . (if ATR is 8 then stop loss will be of 16 points) if 2x ATR is more then days low, you can keep stop loss as days low to save some bucks. Target will be at least 16 points. You can ride on with trailing stop loss method you chose to follow.

SELL Signal � same way, after a sharp rally, when market exits overbought zone (75 reading) on closing basis, go short below low of closing candle (after deducting 2 filter points) with 2x ATR stop loss (or days high) for 1:1 Risk reward or trail your stop loss according to your own method.  link

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But they say option buyers never make money; it is only the sellers who do?
Two things that I don’t do while trading options is hold it overnight or trade in-the-money options. When you hold options overnight, the time decay happens faster and if you trade in-the-money options, the absolute return when you are right on your trades is not much.
Also one of the things that I avoid as an option buyer is to pyramid, that is add to existing open option positions as and when it goes in my favor. When you buy options you are fighting time, volatility and price moves, so I personally never liked pyramiding and always lost when I did.
So you never carry option positions overnight?
There are times when I do carryover options, but I reduce the size significantly. Also the option position carry forwarded is not because it has made a loss, so let us hold it to the next day hoping that it recovers. It is mainly because the gut sometime says that there is more in the trade left to play out.
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Thumbs up Earn 180% profit through nifty strategy

Dear All,

I have been doing some calculations to make a strategy in Nifty and got an idea which i would like to share here and know whether it has any shortfall.. Pls guide me, any constructive criticism is welcome!!!

Here goes my thought:

Step 1: Buy Nifty futures for the near month say now Nifty 31Aug 2012 @ 5265

Step 2: Sell "in the money" option say 5200CE 31Aug2012 @ 165

Thats it!!! Whenever market falls below 5200 sell nifty and once it comes back to 5200 buy it!! In this way once the contracts expires we will be getting the time premium of 100 points (say nifty closes @ 5400 on 31st Aug, sell the futures which will be @5400 giving us a profit of 135 points and buy the 5200CE @ 200 which has a loss of 35 points) earning Rs.5000 per lot giving you a profit of 30% in 50 days. We can do the same for 6 times in a year which will give u a profit of 30,000 p.a on a capital of 16,750 i.e 180% returns!!!

The capital required will be say 25,000 - 8250 (50*165) = 16750 per lot!!! One more advantage is that when the market goes up u will be credited with the MTM as well!!!

As it looked very simple to me am confused whether i have left any loopholes here!!! Pls guide me if there is any loop holes left!!!

(One loophole i thought is tat if market goes gap down from 5220 to 5150, i might not be able to sell nifty futures @ 5200, but still i have 100 points on which i can lose 50points and still earn decent profit and a gap down over 50-70 points is rare)

Thanks in advance!!!

Regards

Giri

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Cool TARGET :500 Nifty points per month...!

This is just a revision of this strategy and how to trade it effectively...!

http://www.traderji.com/options/2823...-straddle.html

One look at the strategy and it appears very simple. Let me assure you, its not. No method that can make money in this market is ever simple. There are rules and guidelines and adhering to these rules is the only guarantee of a decent result.

This is how i trade the system. Its not necessary that you to follow it like a book. Just try to get the general essence of the trade flow and then you can work on how to personalize it...

I trade nifty intraday and sometimes i'm very agressive. Charts are my only guide. If the chart says buy, I will buy without trying to second guess the system. Options are used as a hedge only. Profit target is 400 points from nifty and 100 points from straddle.

Normal trade duration is 15-20 days.

Link , Link 2
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Opportunity stays hidden and invisible on the chart till we see confirmation and more confirmation we seek, opportunity diminishes with the same speed.


Nifty option strategy calculator
Pivot valculator
NSE stock breakouts

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