Looking for a mentor in option trading

[gogs1973]

gogs1973 no strategy is risk free. maintain strict stop loss, most important. these strategies have little loss and low profit. be consistent, exit the position or book profit at the right time, just follow the rules. not a get rich quick scheme.

Ok sir got it

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[lemondew]

Get rich quick scheme is risky. Best to have small position size and do many many trades where you have an edge. Over a period it works in our favour.
A strategy works or not cannot be decided on a day after 1 trade.

5 wins on a trot and then 8 losses on a trot. ??

gogs1973 no strategy is risk free. maintain strict stop loss, most important. these strategies have little loss and low profit. be consistent, exit the position or book profit at the right time, just follow the rules. not a get rich quick scheme.

 

[oldtrader]

Good .Does it mean that the dilip strategies work?

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Too early to say whether it works or not. In the backtest it failed miserably. Even if it does not fail, the returns are minuscule. I am testing on strategy on options, will post shortly. I was getting around 1000 points in 15 months time.

 

[oldtrader]

Option selling sounds like slow and hardwork. Its good for people who refuse to believe things come easy and quick. In my opinion making 15% per annum is good :thumb:

True, it is very slow and boring. But what that guy is promising---3% per month----is not achievable with the strategies being suggested in the course.

 

[gemat]

gogs1973 i am just like you, still learning little by little about options everyday. no need to call me sir my friend.

his strategy 1 takes time with very little profit. if there is a sudden rise or fall of 300 or more, you have close the position n would incur a loss. next step is use strategy 2 by doubling the lots. its boring and time consuming. depends on how you view the market. if its range bound like now its profitable. or there is a chance market may move in one direction only after a news or new announcement opening a credit spread position is more suitable.
:thumb:

 

[gogs1973]

Ok dear

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[oldtrader]

gogs1973 i am just like you, still learning little by little about options everyday. no need to call me sir my friend.

his strategy 1 takes time with very little profit. if there is a sudden rise or fall of 300 or more, you have close the position n would incur a loss. next step is use strategy 2 by doubling the lots. its boring and time consuming. depends on how you view the market. if its range bound like now its profitable. or there is a chance market may move in one direction only after a news or new announcement opening a credit spread position is more suitable.
:thumb:

hi gemat,

If u see the backtest results of 2015, u will find the following statistics

Strategy 1 traded = 9 times
Passed = 2 times
Pass points = 55 points
Failed = 7 times
Failed points = 110 points
Strategy 2 traded = 7 times
Passed = 4 times
Pass points = 181 points
Failed = 3 times
Failed points = 99 points

------------------------------
Total = 27 points
-------------------------------

Pls compare this with the Dilip Shaw Manual. It is a complete contradiction.

 

[gemat]

old trader, if you look at historical 24 months day chart you will find that this strategy 1 method fails most of the times since we sell and buy next month's options, not current month's and nifty gains or loses 500+points . i usually find the support and resistance from the historical 2 year day chart and change my strategy according to that. unless there a news that triggers a market breakout that may go against your expectations then we have to exit with a loss.

when an iron condor position is opened, the nifty moves up or down 300 or more points in 4-5 days and volatility rises we may have to exit with 3-4 percent loss of the margin blocked. but if the move is very gradual, theta reduces the premium there is a high chance you could book 50% of the profit. return is very low and very exhausting strategy.

when nifty reaches its support or resistance level (from historical chart), there is very good chance nifty is going to bounce back by 200 points or more, there are other future and options combined hedging strategies that could fetch you good profit or a simple naked call or put would do.

i never stick to strategy 1. it is good for range bound market.

i bought DS's course on an impulse. just want to read about the conservative strategies. :thumb:

 

[lemondew]

There must be a few who would write about options srategies on nifty or NSE in general.

old trader, if you look at historical 24 months day chart you will find that this strategy 1 method fails most of the times since we sell and buy next month's options, not current month's and nifty gains or loses 500+points . i usually find the support and resistance from the historical 2 year day chart and change my strategy according to that. unless there a news that triggers a market breakout that may go against your expectations then we have to exit with a loss.

when an iron condor position is opened, the nifty moves up or down 300 or more points in 4-5 days and volatility rises we may have to exit with 3-4 percent loss of the margin blocked. but if the move is very gradual, theta reduces the premium there is a high chance you could book 50% of the profit. return is very low and very exhausting strategy.

when nifty reaches its support or resistance level (from historical chart), there is very good chance nifty is going to bounce back by 200 points or more, there are other future and options combined hedging strategies that could fetch you good profit or a simple naked call or put would do.

i never stick to strategy 1. it is good for range bound market.

i bought DS's course on an impulse. just want to read about the conservative strategies. :thumb:

 

[gemat]

http://www.traderji.com/derivatives/17371-future-option-combo-strategy-almost-risk-free-profits.html , an old thread they have discussed some good strategies. check the future options combined strategy.