M+M+M=Money

M

muthutrader

Active Member
#1
#1
hallo friends
i will be trading for past 3 years,doing research for past 6 mounts i finely develop a trading
strategies for options trading,i like to share this trading strategies and i need your all opinion


this strategies will give average of 40% return for trade



My trading method
i use 90min time frame in nifty to confirm trend (indicators are 5ema,15ema,sts,5,15,5)
when 5ema cross above 15ema that's uptrend (sts should be at over sold level)
when 5 ema cross below 15 ema that's downtrend (sts should be at Overbought level)
http://www.traderji.com/attachment.php?attachmentid=18730&stc=1&d=1365131660
When 90min trend confirm then i change to 15min chart in nifty to enter a trader
with same method
http://www.traderji.com/attachment.php?attachmentid=18731&stc=1&d=1365131680
stoploss is when i go for long i use the recent low as a stoploss in nifty
when i go short i use the recent high as a stoploss in nifty

when nifty give a trading signal i went in options to trade with a setup

captian invesment i sdarted with 3000rs

i set my money management setup like this

1,3000*1.4=4200
2,4200*1.4=5880
3,5880*1.4=8232
4,8232*1.4=11524
5,11524*1.4=16134
6,16134*1.4=22588
7,22588*1.4=31624
8,31624*1.4=44273
9,44273*1.4=61983
10,61983*1.4=86776
11,86776*1.4=121486
12,121486*1.4=170081
13,170081*1.4=238114
14,238114*1.4=333360
15,333360*1.4=466704
16,466704*1.4=653386
17,653386*1.4=914740
18,914740*1.4=1280636
19,1280636*1.4=1792891
20,1792891*1.4=2510047
21,2510047*1.4=3514066
22,3514066*1.4=4919693
23,4919693*1.4=6887570
24,6887570*1.4=9642599
25,9642599*1.4=13499638(tel me your opinion on my money management setup)

i successfully done first 3 steps

Friends i need you all advice to develop my trading strategies

thanks happy trading
 
Last edited:
S

sabhlok_r

Well-Known Member
#2
#2
Muthu,

good initiative....few questions here..

1. Do u buy naked call/put options or sell them?
2. Do u take ITM or OTM options for your trade?
3. How do u set up your sl levels?

Rajesh
 
M

muthutrader

Active Member
#3
#3
sabhlok_r said:
Muthu,

good initiative....few questions here..

1. Do u buy naked call/put options or sell them?
2. Do u take ITM or OTM options for your trade?
3. How do u set up your sl levels?

Rajesh
Click to expand...
Hi sabholk_r
i always buy options , if i get a buy signal in nifty i buy call option
if i get sell signal in nifty i buy put option

2,in apr 2 11.30 am i get buy signal in nifty,nifty was at 5700
i buy 5900 call option at 17.15
target 24
3,stoploss 5687 that was recent low of nifty that time
or u can use option recent low as well that was 14.75

i use nifty nifty levels as my stoploss
in that trade my target hit
call option buy at 17.15 target 24
sl 5687 r 14.75
dont thing of like naked call/put options r ITM or OTM
its about trading options as simple as

happy trading
 
DanPickUp

DanPickUp

Well-Known Member
#4
#4
Dear Muthutrader

Not much to say about what you present. It is that sort of simple MA system which are posted all over the place. If it works for you, that is fine. So go on with it. You may do from time to time a system test with your MAs to see if they still give the best result in the actual situation. Not sure if you can do that with the software you show.

As far as I understood, you use otm options. Your stop loss is a placed limit sell order for the option, calculated on the low or top of the trend reversal from the underlying, or did I get that wrong?

Your MM example is of that kind which people like to think that they then will have that and that kind of amount after so and so many trades. Have seen and met many beginners in trading who did that and finally disapeard with out any words. So be careful with such milk book calculations, as they are some kind of stupid and not have much to do with reality in trading.

More important point: How much are 3000 Rs from your whole capital you want to use for trading, as you/we easily can face a row of losses by what ever you/we do in trading. And if there is not enough capital in the background for such rows, we are out of the business.

Finally: It is the trade management which will bring you the money and not the number you already see in the milk book calculation. So concentrate on the trade and not on those numbers.

Good trading / DanPickUp
 
M

muthutrader

Active Member
#5
#5
DanPickUp said:
Dear Muthutrader

Not much to say about what you present. It is that sort of simple MA system which are posted all over the place. If it works for you, that is fine. So go on with it. You may do from time to time a system test with your MAs to see if they still give the best result in the actual situation. Not sure if you can do that with the software you show.

As far as I understood, you use otm options. Your stop loss is a placed limit sell order for the option, calculated on the low or top of the trend reversal from the underlying, or did I get that wrong?

Your MM example is of that kind which people like to think that they then will have that and that kind of amount after so and so many trades. Have seen and met many beginners in trading who did that and finally disapeard with out any words. So be careful with such milk book calculations, as they are some kind of stupid and not have much to do with reality in trading.

More important point: How much are 3000 Rs from your whole capital you want to use for trading, as you/we easily can face a row of losses by what ever you/we do in trading. And if there is not enough capital in the background for such rows, we are out of the business.

Finally: It is the trade management which will bring you the money and not the number you already see in the milk book calculation. So concentrate on the trade and not on those numbers.

Good trading / DanPickUp
Click to expand...
Dear DanPickUp thanks for u r advice

the stoploss i use is recent high r low
if i buy an call option i use the recent low as a stoploss
(in apr 2 11.30 am i get buy signal in nifty,nifty was at 5700
i buy 5900 call option at 17.15
target 24
3,stoploss 5687 that was recent low of nifty that time
or u can use option recent low as well that was 14.75)

if i buy an put option i use the recent high as stoploss

yes i am going to concentrate on the trading, not the money management what i post,thats a basics structure only, i am not going to do that 100%,
the main point is its about the volume not the calculations

i started with 2lots,now its 6 lots right now, so its all about increase lots size
step by step(in my 1trade i buy 2lots with option price 15,now i can buy an 6lots with the option price of 15, i want increase lot size step step, in my lost trading, i want to trade with 5000lots r more then that, then only i can make some big money,its all about increase the lot size, not the calculations

thanks my friend
 
M

muthutrader

Active Member
#7
#7
DanPickUp said:
Dear Muthutrader

You are on the right path with your: It is all about increasing lot size. :)

Good trading / DanPickUp
Click to expand...
dear DanPickUp thanks for u r advice
1,tel me what other negative points i have it
2,(Not sure if you can do that with the software you show. )what is that meaning?i dont understand that

thanks friend
happy trading
 
DanPickUp

DanPickUp

Well-Known Member
#8
#8
Dear Muthutrader

1. There are no real negative points by what you do, as you already where able to increase your lot size from 2 to 6 by just trading the way you do it. No need for any change as long as it works, even I am not a lover of those MA systems. I use MA, but seldom for any entries. I use them more the way I explained in my thread about options. But that is each ones personal choice.

There are always other ways to trade a trade, specially in option strategy trading, but that then may also does not fit the taste of that specific meal. So, no real comment on point one from my side as you have a trading plan which uses the idea of synthetic call and puts, as far as I understood or interpreted your posts. :)

2. You show a picture from S. Trade Tiger. I do not use that software and so I do not know what kind of possibilities that platform gives. That is what I meant.

DanPickUp
 
M

muthutrader

Active Member
#10
#10
Dear Friends

i have one doubt,some one tel me how much time it will take to buy a more then 4000 lats in nifty options ?
and tel me how to place that kind of buying orders?
i use odin trading software

thanking u

happy trading
 
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