1 Lac turns into 22 lac in 1 yr 2 mths 6 days

[Karanm]

there is a good news

for those who dont have access even to TV or net during market hours,

and can only access 8dema after market closes, from various sites like say icharts.in, google finance, yahoo finance,

can go for previous day's 8dema.

i ve backtested with prv.day 8dema and it gives same or even better returns.

this way if we have to phone our broker twice daily,

once, just before close, ask him where is nifty spot and since we know prv. day's 8dema, we can order him to go for a buy or sell ( of course in nifty futures).

next, just before market reopens in the morning the next day to place our stop loss orders and profit booking orders.

pl. take note : all these backetsting r not done on nifty futures data but on nifty spot.

With due respect to you, I want to say that what I understood from your Original Strategy was that it was very simple, reasonably Profitable and above all very convenient to be Traded by even a lay man like me.

Excel you had posted with performance from 13/4/2011 to 6/7/2012 or the Excel from 2007 to 2012 were having results which are much above the expectations of a normal Trader.

I am unable to understand why now you are mixing different Strategy with your Original Strategy, kindly explain what were the doubts you had in your Original Strategy that you had mixed up with other Strategy and now your Original Strategy is not for a simple trader any more.

Lastly I would request you for some other Strategy which is as good as your Original Strategy in terms of simplicity & returns.

Regards & Thanks

 

[augubhai]

Hi ,

Thanx for posting your trades consistently.

Just curious, how do u put stoploss on the option. Suppose tomorrow market gaps up 200 pts and comes 100 points down later, then u'r future will get squared off at 200 points loss and option will comes down fast. So.actually u'r stoploss won't work.
Is there any broker or trading system where if one order gets excuTed second order gets triggered?


Thanx

The SL is only for the Futures. Whenever the Futures position exits at Target or SL, the option position will be closed manually. I guess it does not matter if there is a small delay in squaring off the option, since the delta for the option is so less. I have the option position only to protect against overnight risk.

 

[krishan prakash saxena]

step 1 : buy nifty just before close when it is above 8dema, OR
sell nifty just before close when it is below 8dema,


PLEASE GUIDE ME.
Today banknifty (from yahoo finance)
3.20 p.m. bnf 10414.80 ema(8) 10416.14

3.23 p.m. bnf 10411.55 ema(8) 10413.75

3.26 p.m. bnf 10412.45 ema(8) 10412.22

3.28 p.m. bnf 10408.85 ema(8) 10410.88

3.30 p.m. bnf 10412.15 ema(8) 10409.91


We should go long or short.

Thanks

 

[augubhai]

Trade 4 rolled over to August series today. I am treating Trade 4 as still open.

Trade 4A:
Entry at close on 20th July.
- Sold July NF at 5220
- Bought July 5300 Call at 10
Exit at close on 26th July (Expiry)
- Bought July NF at 5043
- July 5300 Call expired worthless

Trade 4B:
Entry at close on 26th July
- Sold August NF at 5080
- Bought August 5300 Call at 23.8

For August NF, I have kept target as 5046 , SL as 5294, EOD SAR as 5181

Trade 4 shorts closed today, and Trade 5 long initiated. Trade 4 came within 30 points of achieving target and reversed.

Trade 4A:
Entry at close on 20th July.
- Sold July NF at 5220
- Bought July 5300 Call at 10
Exit at close on 26th July (Expiry)
- Bought July NF at 5043
- July 5300 Call expired worthless

Trade 4B:
Entry at close on 26th July
- Sold August NF at 5080
- Bought August 5300 Call at 23.8
Exit at close on 30th July (close about 8 EMA)
- Bought August NF at 5217
- Sold August 5300 Call at 54.5

(5220-5043)+(5080-5217) = 40 points profit in Futures
(0-10)+(54.5-23.8) = 20.7 points profit in Options

Trade 5
Entry at close on 30th July
- Bought August NF at 5217
- Bought August 5200 Put at 86.6


Results so far

Trade 1	11/07-12/07	Futures: -63	Option Hedge: +28	Total: -35
Trade 2	12/07-19/07	Futures: -13	Option Hedge: -19.5	Total: -32.5
Trade 3	19/07-20/07	Futures: -40	Option Hedge: +10.5	Total: -29.5
Trade 4	20/07-30/07	Futures: +40	Option Hedge: +20.7	Total: +60.7


All trades		Futures: -76	Option Hedge: +39.7	Total: -36.3

 

[jyotixxx]

Trade 4 shorts closed today, and Trade 5 long initiated. Trade 4 came within 30 points of achieving target and reversed.

Trade 4A:
Entry at close on 20th July.
- Sold July NF at 5220
- Bought July 5300 Call at 10
Exit at close on 26th July (Expiry)
- Bought July NF at 5043
- July 5300 Call expired worthless

Trade 4B:
Entry at close on 26th July
- Sold August NF at 5080
- Bought August 5300 Call at 23.8
Exit at close on 30th July (close about 8 EMA)
- Bought August NF at 5217
- Sold August 5300 Call at 54.5

(5220-5043)+(5080-5217) = 40 points profit in Futures
(0-10)+(54.5-23.8) = 20.7 points profit in Options

Trade 5
Entry at close on 30th July
- Bought August NF at 5217
- Bought August 5200 Put at 86.6


Results so far

Trade 111/07-12/07Futures: -63Option Hedge: +28Total: -35
Trade 212/07-19/07Futures: -13Option Hedge: -19.5Total: -32.5
Trade 319/07-20/07Futures: -40Option Hedge: +10.5Total: -29.5
Trade 420/07-30/07Futures: +40Option Hedge: +20.7Total: +60.7


All tradesFutures: -76Option Hedge: +39.7Total: -36.3

So far so good..and really option hedging has come up as beneficial to you by 39 pts, in addition to overnight protection.

 

[jyotixxx]

Hi Nilu, augubhai


Actually I am also doing some paper trades and closely observing your system. My two cents are here

1. Option hedge will definely be beneficial provided you sqare off it almost at same time as the NF.
2. When you hit 200 pts profit limit and if you are above 8 dema, don't square it off. Just think it's a new trade and put 35 stoploss from this point.You save brokerage.
3. I think stoploss at 8 dema , when 8dema is closer to spot than your entry price , will make a positive change!! I cannot bet it ,but Nilu, as u said u have tried n numbers of stoploss can u throw some lights on it? Have u tried 8 dema as stoploss? I am sorry I cannot backtest as I have a Mac.

Regards

 

[augubhai]

Trade 4 shorts closed today, and Trade 5 long initiated. Trade 4 came within 30 points of achieving target and reversed.

Trade 4A:
Entry at close on 20th July.
- Sold July NF at 5220
- Bought July 5300 Call at 10
Exit at close on 26th July (Expiry)
- Bought July NF at 5043
- July 5300 Call expired worthless

Trade 4B:
Entry at close on 26th July
- Sold August NF at 5080
- Bought August 5300 Call at 23.8
Exit at close on 30th July (close about 8 EMA)
- Bought August NF at 5217
- Sold August 5300 Call at 54.5

(5220-5043)+(5080-5217) = 40 points profit in Futures
(0-10)+(54.5-23.8) = 20.7 points profit in Options

Trade 5
Entry at close on 30th July
- Bought August NF at 5217
- Bought August 5200 Put at 86.6


Results so far

Trade 1	11/07-12/07	Futures: -63	Option Hedge: +28	Total: -35
Trade 2	12/07-19/07	Futures: -13	Option Hedge: -19.5	Total: -32.5
Trade 3	19/07-20/07	Futures: -40	Option Hedge: +10.5	Total: -29.5
Trade 4	20/07-30/07	Futures: +40	Option Hedge: +20.7	Total: +60.7


All trades		Futures: -76	Option Hedge: +39.7	Total: -36.3

Whipsaw yesterday. SL for longs was hit. Close was above 8 EMA, so re-entered long EOD.

Trade 5
Entry at close on 30th July
- Bought August NF at 5217
- Bought August 5200 Put at 86.6
Exit on 31st July. SL hit
- Sold August NF at 5180.5
- Sold August 5200 Put at 107
5180.5-5217 = 36.5 points loss in Futures
107-86.6 = 20.4 points profit in Options

Trade 6
Entry at close on 31st July. Close above 8 EMA
- Bought August NF at 5243
- Bought August 5200 Put at 71.3


Results so far (without deducting points for brokerage)

Trade 1	11/07-12/07	Futures: -63	Option Hedge: +28	Total: -35
Trade 2	12/07-19/07	Futures: -13	Option Hedge: -19.5	Total: -32.5
Trade 3	19/07-20/07	Futures: -40	Option Hedge: +10.5	Total: -29.5
Trade 4	20/07-30/07	Futures: +40	Option Hedge: +20.7	Total: +60.7
Trade 5	30/07-31/07	Futures: -36.5	Option Hedge: +20.4	Total: -16.1


All trades		Futures: -112.5	Option Hedge: +60.1	Total: -52.4

 

[augubhai]

i am not backtesting either, but for now I am going with Nilu's test results.

 

[augubhai]

Whipsaw yesterday. SL for longs was hit. Close was above 8 EMA, so re-entered long EOD.

Trade 5
Entry at close on 30th July
- Bought August NF at 5217
- Bought August 5200 Put at 86.6
Exit on 31st July. SL hit
- Sold August NF at 5180.5
- Sold August 5200 Put at 107
5180.5-5217 = 36.5 points loss in Futures
107-86.6 = 20.4 points profit in Options

Trade 6
Entry at close on 31st July. Close above 8 EMA
- Bought August NF at 5243
- Bought August 5200 Put at 71.3


Results so far (without deducting points for brokerage)

Trade 1	11/07-12/07	Futures: -63	Option Hedge: +28	Total: -35
Trade 2	12/07-19/07	Futures: -13	Option Hedge: -19.5	Total: -32.5
Trade 3	19/07-20/07	Futures: -40	Option Hedge: +10.5	Total: -29.5
Trade 4	20/07-30/07	Futures: +40	Option Hedge: +20.7	Total: +60.7
Trade 5	30/07-31/07	Futures: -36.5	Option Hedge: +20.4	Total: -16.1


All trades		Futures: -112.5	Option Hedge: +60.1	Total: -52.4

Another whipsaw today.

Trade 6
Entry at close on 31st July. Close above 8 EMA
- Bought August NF at 5243
- Bought August 5200 Put at 71.3
Exit on 3rd August. SL hit
- Sold August NF at 5207
- Sold August 5200 Put at 85.5
5207-5243 = 36 points loss in Futures
85.5-71.3 = 14.2 points profit in Options

Trade 7
Entry at close on 3rd August. Close above 8 EMA
- Bought August NF at 5239
- Bought August 5200 Put at 66


Results so far (without deducting points for brokerage)

Trade 1	11/07-12/07	Futures: -63	Option Hedge: +28	Total: -35
Trade 2	12/07-19/07	Futures: -13	Option Hedge: -19.5	Total: -32.5
Trade 3	19/07-20/07	Futures: -40	Option Hedge: +10.5	Total: -29.5
Trade 4	20/07-30/07	Futures: +40	Option Hedge: +20.7	Total: +60.7
Trade 5	30/07-31/07	Futures: -36.5	Option Hedge: +20.4	Total: -16.1
Trade 5	31/07-03/08	Futures: -36	Option Hedge: +14.2	Total: -21.8

All trades		Futures: -148.5	Option Hedge: +74.3	Total: -74.2

 

[anantharaaman]

after 3rd august no activities in this thread pls be continue