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

[healthraj]

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

Charts not working in 2.0 beta2...

Why? Please send the screenshot.

 

[aimer]

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

From OTP perspective there should be only one Call. Otherwise it beats the strategy and purpose of OTP.

Anyways if you want to trade more then you should be following MPT and not OTP.

So first of all decide whether you are a OTP trader or a MTP trader... Do not mix both and try to take the best of both... It would not work...

Thanks Raj...now its getting into my head...

 

[Option.Trader]

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

For OTP Take the values which appear in the morning and open the trade as as soon as you can...

For MTP, if the values and signals keep on changing then it is a signal that the market is either volatile or sideways. So close the positions and wait till a strong trend is in place... The tool only shows you what is happening in the market... There cannot be any magic call..

This is the quandry i always had... for OTP u are suggesting to take the trade as soon as you can, probably in the first few minutes and still keep the stop loss at 7 points from the position taken or from the opening price indicated?
for eg,I take at opening the position of buy @5240.. whereas the nifty futures opened at 5236. So is my stop loss 5233 and not the stop loss indicated by opening at 5229 right?
Also in the tool, the levels for OTP, the stop loss is shown above the buy price (oval circle)
View attachment 18124

 

[rh6996]

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

buy above 5248 s/l 5233 tgt1 5274 tgt2 5300

The levels are Nifty Spot or Nifty Futures!!??
A small suggestion : If we can mention it while posting the Levels would be good for all!! As both Spot and Future levels are referred to in this thread hence it seems more important here!!

 

[aimer]

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

Why? Please send the screenshot.

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[boarders]

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

whatever i post are current month future levels as shown in excel sheet

 

[healthraj]

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

OK. I think there is some big confusion in the OTP trading...

So I will try answer them one by one. IF there are more questions please let me know... Basically I am not deviating from the strategy that Ihad put forward in the beginning of the thread... If the tool is confusing, then if you are a OTP trader then do not look at "Trading System" sheet. Trade purely based on "NIFTY-OTP". The tool is just supposed to update the "NIFTY-OTP" sheet automatically and provide the status of the open OTP call.

For OTP at what level should buy/Sell?
Use the levels mentioned at the end of day.... ie for today 01-Aug-2012 morning, goto NIFTY-OTP sheet and see the signal for 01-Aug-2012 (STAY LONG), if it is long signal then use value in the in the 31-Jul-2012 (Buy above 5203). Do not use the levels mentioned in the 01-Aug-2012 because it would keep on changing for today.

In the morning after the opening of the market, what if today signal is in completely different from yesterday (ie yesterday Buy and Today Close, or Yesterday Buy and Today sell)?
Then do not take any OTP positions... That is main purpose of putting the OTP live on the tool...

If we are taking the values from "NIFTY OTP" for trading then What is the use of OTP signals and values in the "Trading System"?
Just for tracking the open calls

When do we make the decision and decide the levels to Buy/Sell?
Decide at the end of the day... Change the decision in the opening of the day based on today's opening basically to address GAP UP and GAP Downs...

Give an example?
At 31-Jul-2012 EOD, Signal was BUY LONG above 5203
on 01-Aug-2012, market opened above 5203 (5221) and so we buy.
Stoploss hit because made low of 5213....

If not able to buy at 5221 and bought at say 5229, then the stoploss would be 5222...

 

[healthraj]

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

This is the quandry i always had... for OTP u are suggesting to take the trade as soon as you can, probably in the first few minutes and still keep the stop loss at 7 points from the position taken or from the opening price indicated?
for eg,I take at opening the position of buy @5240.. whereas the nifty futures opened at 5236. So is my stop loss 5233 and not the stop loss indicated by opening at 5229 right?
Also in the tool, the levels for OTP, the stop loss is shown above the buy price (oval circle)
View attachment 18124

Yes Option.Trader...

For this strategy let me reiterate the imporatant assumptions.

1. Only 20% of the trades are going to be winning trades and they are most probably high profit trades.
2. So 80% of the time, you should be ready to loose with only 7 points loss...
3. From the SPOT data, the 20% of the trades are winning trades because after market opening the market trades always in our direction... No looking back... Just straight UP/DOWN... Now here is where you are saying that while using the Futures most of the time the stoploss is hit even in the directional days...
4. In other words if you are saying that in reality we are going to win only 15% instead of 20-22% then adjust your stoploss and see if you are getting profit with Future data... Let us know the results with the Future data...

 

[healthraj]

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

Typical Wednesday... Day for operators to eat Options premiums...

 

[aimer]

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

OK. I think there is some big confusion in the OTP trading...

So I will try answer them one by one. IF there are more questions please let me know... Basically I am not deviating from the strategy that Ihad put forward in the beginning of the thread... If the tool is confusing, then if you are a OTP trader then do not look at "Trading System" sheet. Trade purely based on "NIFTY-OTP". The tool is just supposed to update the "NIFTY-OTP" sheet automatically and provide the status of the open OTP call.

For OTP at what level should buy/Sell?
Use the levels mentioned at the end of day.... ie for today 01-Aug-2012 morning, goto NIFTY-OTP sheet and see the signal for 01-Aug-2012 (STAY LONG), if it is long signal then use value in the in the 31-Jul-2012 (Buy above 5203). Do not use the levels mentioned in the 01-Aug-2012 because it would keep on changing for today.

In the morning after the opening of the market, what if today signal is in completely different from yesterday (ie yesterday Buy and Today Close, or Yesterday Buy and Today sell)?
Then do not take any OTP positions... That is main purpose of putting the OTP live on the tool...

If we are taking the values from "NIFTY OTP" for trading then What is the use of OTP signals and values in the "Trading System"?
Just for tracking the open calls

When do we make the decision and decide the levels to Buy/Sell?
Decide at the end of the day... Change the decision in the opening of the day based on today's opening basically to address GAP UP and GAP Downs...

Give an example?
At 31-Jul-2012 EOD, Signal was BUY LONG above 5203
on 01-Aug-2012, market opened above 5203 (5221) and so we buy.
Stoploss hit because made low of 5213....

If not able to buy at 5221 and bought at say 5229, then the stoploss would be 5222... QUOTE]

Just one clarification raj, as u have said that we keep a stop 7 points below the buy level...but u have already stated in ur initial pages that nifty does not go beyond 7-10 points below the opening range 20-25% of times,(just quoting ur statement from the first page of urs " 20-25% of the time when the market is trending, NIFTY never crosses the opening price by more than 10 points.")considering the stops below buying level does not go against ur strategy!!! According to this the stop should stay any ways below the opening range irrespective of where we enter and should not change the stop on the basis of where we buy...in that case we are stopped out below xx39-7=xx32...

My question is then why are u considering stop below where an individual is buying?