1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures - Bac

Whether the latest MTP v2.2 tool is useful?

  • YES. The tool helps to take safe positions using FLOW and Renko Charts

    Votes: 26 92.9%

  • NO. The tool is not useful

    Votes: 2 7.1%
  • Total voters
    28
  • Poll closed .
jamit_05

jamit_05

Well-Known Member
#2,291
#2,291
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

healthraj said:
Pair Trading...

Those who want to Trade the pair can Trade 6000CE and 6000 PE. Going by the MAX Pain at 6000, the Market shall expire around 6000 in which case the 6000 CE/PE will loose the value. Right now it is available at 99.
Click to expand...
What is the risk involved?

If market moves up strongly by say 70 points from here to 6120... then one will see a loss of 120 points on one leg. So, the DD is likely to be around 1 to 1.5 times the return.
 
G

gmt900

Well-Known Member
#2,292
#2,292
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

jamit_05 said:
What is the risk involved?

If market moves up strongly by say 70 points from here to 6120... then one will see a loss of 120 points on one leg. So, the DD is likely to be around 1 to 1.5 times the return.
Click to expand...
One can a keep a stop loss of 100 on 6000 CE and accept loss on PE (which will be less than 20 points )as loss. It is essentially to close the position EOD.
 
jamit_05

jamit_05

Well-Known Member
#2,293
#2,293
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

gmt900 said:
One can a keep a stop loss of 100 on 6000 CE and accept loss on PE (which will be less than 20 points )as loss. It is essentially to close the position EOD.
Click to expand...
Point being.

Any trading method with a SL has a rule: One has to complete 10 trades to get a positive result.

If one does not do so, then it might not give good results.
 
healthraj

healthraj

Well-Known Member
#2,296
#2,296
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

healthraj said:
Pair Trading...

Those who want to Trade the pair can Trade 6000CE and 6000 PE. Going by the MAX Pain at 6000, the Market shall expire around 6000 in which case the 6000 CE/PE will loose the value. Right now it is available at 99.
Click to expand...
Sorry if I had confused. I had already provided the Range as 6018-6078. So When selling the pair, I would expect to sell when NIFTY trading around 6078.

So get the Pair for around 112-117.
 
S

shivan

New Member
#2,297
#2,297
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

healthraj said:
Pair Trading...

Those who want to Trade the pair can Trade 6000CE and 6000 PE. Going by the MAX Pain at 6000, the Market shall expire around 6000 in which case the 6000 CE/PE will loose the value. Right now it is available at 99.
Click to expand...
@Raj how to calculate MAX Pain in excel as option oracle does not work on my system
 
healthraj

healthraj

Well-Known Member
#2,298
#2,298
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Options update 22-Jul-13

10:30 AM
MAX CHG in OI @ 6000-6200.
CE @ 2.55L PE@ 8.89L - Favouring Bulls.
Range - 6018-6079.
MAX OI @ 5900-6000.

1:00 PM
The morning Range is more or less filled. Made high of 6072.9 and now Down to 5056.

MAX CHG in OI @ 6000-6200.
CE @ 5L PE@ 14.5L - Favouring Bulls.
MAX OI @ 5900-6200.
Both the CE and PE Volatility are going down. So we cannot expect any Breakout of the Range.

The only thing which is Favouring BEARs is that the MAX pain is at 6000. So market will try to move towards 6000. Fro this expiry unless the MAX pain changes, the expiry would be between 5970-6030.

The Volatility Trend Chart indicates a Reverse Skew, which indicates that the Market makers are not very much for any UP beyond 6070 and so are hedging with the Shorts. In a Reverse Skew, the Volatility of the Lower Strike CE and PEs will be higher.

Please go through the link http://www.theoptionsguide.com/volatility-smile.aspx for more details on Volatility smile and skew
 
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