General Trading Chat
- Thread starter timepass
- Start date
- Tags idle thoughts trading talk only
I am not tied to options or for that matter futures or stocks. As long as it gives me returns I go with it. I am just trying out futures. Just to know the best of all worlds. my way of doing options doesnt take a lot of my time.
Other PA guys here amit, manish, ramakant and others which intervals do you see.......
For now just got my amibroker. hope it runs with now tomorrow just like nest. To start off with I am just going to put up. a 5 min, 60 min and a 1 day chart in ami. See if trends make any sense to me.
Other PA guys here amit, manish, ramakant and others which intervals do you see.......
For now just got my amibroker. hope it runs with now tomorrow just like nest. To start off with I am just going to put up. a 5 min, 60 min and a 1 day chart in ami. See if trends make any sense to me.
As you are more in options, as far as I understood so far, you now try to move into a level of future trading which is quit tricky. Even the "Adding part" in such trading of dear ST you have to understand in dept.
Here I am not sure if you aware about this specific part. As you prefer lower risk trading, do a job beside some trades you do, the two bar strategy is maybe not what you would call: Trading in my zone.
This just some thing to think over and no critique in any way. But ST is a future pro and until now I have seen you more on the low risk option side, which is an other world.
Take care / Dan
Here I am not sure if you aware about this specific part. As you prefer lower risk trading, do a job beside some trades you do, the two bar strategy is maybe not what you would call: Trading in my zone.
This just some thing to think over and no critique in any way. But ST is a future pro and until now I have seen you more on the low risk option side, which is an other world.
Take care / Dan
Ideally intervals between TF should be 4 to 5 times.
It means if you are trading on Daily chart ; you should look for Weekly then Monthly chart which comes 4 to 5 times bigger than trading TF.
Similarly for intraday trading if trading TF is 5min then keep check with 30 min chart or if it's 3 min ( as I use for my trading ) look higher TF as 15 min chart.
@ Taiki,
Let us see how we roll over the positions. In Nifty futures, the next month contract is at premium to the current month contract. So the simple and straightforward way is close current months long position and open long position in next month contract at higher price because of the premiums. Though we have to pay extra by way of premiums,over a long period sometime we will be long and paying premium, sometimes we will be short and receiving premiums...so it evens out. And if you calculate 30-40 or even 70 points premium on 8300 Nifty it is less than 0.5-0.75 % per month or 6-9 % per annum...it is the cost of doing business ....
Now I will tell you another way which is not all that straight, it is tricky. I normally roll over my long positions over a period of 2-3 days. Suppose I am rolling over longs position, then I will look for some pivot high break and then will buy next months contract and then when the market goes up by 10-20 points, I sell the current months longs. Here we are increasing our risk, so do it with 20 % position at a time and with stoploss .So in 4-5 trades you can roll over the entire position. The pivot low break also can be used...sell the current month longs and then 10-20 points down ,buy the next months contracts....we can save 10-20 points in this but it comes with added risk and that needs to be understood.This is the reason we roll over in lots of 20 % so if any trade is stuck up, we can keep stoploss and the full position is not at stake.
My Interactive Brokers terminal gives me charts for different months contracts ...so after the roll over, we then follow the stoploss of next months contract chart...normally premiums dont collapse till 10-12 days but if it does, we have to trade with our stoploss 30 points higher in the next months contracts....
If you go long in the slightly deep In The Money puts the premiums will fluctuate very close to the futures price fluctuations and you can capture most of the downtrend through buying puts.
I tried to answer all your doubts...if anything further, feel free to ask.
Smart_trade
Let us see how we roll over the positions. In Nifty futures, the next month contract is at premium to the current month contract. So the simple and straightforward way is close current months long position and open long position in next month contract at higher price because of the premiums. Though we have to pay extra by way of premiums,over a long period sometime we will be long and paying premium, sometimes we will be short and receiving premiums...so it evens out. And if you calculate 30-40 or even 70 points premium on 8300 Nifty it is less than 0.5-0.75 % per month or 6-9 % per annum...it is the cost of doing business ....
Now I will tell you another way which is not all that straight, it is tricky. I normally roll over my long positions over a period of 2-3 days. Suppose I am rolling over longs position, then I will look for some pivot high break and then will buy next months contract and then when the market goes up by 10-20 points, I sell the current months longs. Here we are increasing our risk, so do it with 20 % position at a time and with stoploss .So in 4-5 trades you can roll over the entire position. The pivot low break also can be used...sell the current month longs and then 10-20 points down ,buy the next months contracts....we can save 10-20 points in this but it comes with added risk and that needs to be understood.This is the reason we roll over in lots of 20 % so if any trade is stuck up, we can keep stoploss and the full position is not at stake.
My Interactive Brokers terminal gives me charts for different months contracts ...so after the roll over, we then follow the stoploss of next months contract chart...normally premiums dont collapse till 10-12 days but if it does, we have to trade with our stoploss 30 points higher in the next months contracts....
If you go long in the slightly deep In The Money puts the premiums will fluctuate very close to the futures price fluctuations and you can capture most of the downtrend through buying puts.
I tried to answer all your doubts...if anything further, feel free to ask.
Smart_trade
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