My System - My trades.

[varunkochhar]

John ji i bought 21400PE yesterday as i had written on this thread too. I sold half of my holding in the morning and the SL for the rest was either price of the underlying going above 21720 (yesterday's high) or the OBV going above yesterday's PDC levels. I know for a fact that options (and that also weekly) lose value very fast. In this case had i kept an SL based on the price of the option, (like you have explained) the SL would have triggered twice and i would have had to buy them again at a higher price. The reason i chose 21400 strike price was that i thought that even if BN were to go up to 21720 today, the option would have still been worth 30 (almost half of my purchase) I went into this trade with full consideration and knowledge of my risk. I hope i have answered your question.

 

[varunkochhar]

Gaur ji 200EMA stands for Exponential Moving Average of period 200 and PDC is the level of OBV at 9:16 AM.

 

[jd1234]

Varun Ji,what is the difference between OBV above 200ema and OBV above PDC?

Both represent strength in that script

 

[john302928]

John ji i bought 21400PE yesterday as i had written on this thread too. I sold half of my holding in the morning and the SL for the rest was either price of the underlying going above 21720 (yesterday's high) or the OBV going above yesterday's PDC levels. I know for a fact that options (and that also weekly) lose value very fast. In this case had i kept an SL based on the price of the option, (like you have explained) the SL would have triggered twice and i would have had to buy them again at a higher price. The reason i chose 21400 strike price was that i thought that even if BN were to go up to 21720 today, the option would have still been worth 30 (almost half of my purchase) I went into this trade with full consideration and knowledge of my risk. I hope i have answered your question.

Dear Varun ji,
Please read my post again, I didnt mention that we have to keep SL based on Options,I was saying you would have kept SL based on Swing low in underlying.Below was my previous post.

"Please correct me if my understanding is correct. You would take the position first @ 11.30 thinking that it would go upside since both price and OBV were above 200EMA and keep the watchout for the swing low in underlying if it breaks down. If it breaks down the swing low in underlysing then you would book loss for that 11.30 entry and similary for 12.30 entry.

Am i right?"

 

[varunkochhar]

Yes John ji you are right. I just gave my reason why i donot keep the sl on the price of the option.

 

[manojborle]

Gaur ji 200EMA stands for Exponential Moving Average of period 200 and PDC is the level of OBV at 9:16 AM.

Is that correct Varun ji ?

Isnt PDC, the obv close at 1530 the previous day ?

 

[varunkochhar]

Is that correct Varun ji ?

Isnt PDC, the obv close at 1530 the previous day ?

Yes Manoj ji PDC is a misnomer. I and Happy ji had concluded , that the PDC level of the close at 9:16 gives a better response to the activity of the day. Hence in the AFL he has created for me we use 9:16 levels.

 

[Smart_trade]

Instead of PDC we should call it CDO ( current days open level)...but what is In name ?

ST

 

[manojborle]

Yes Manoj ji PDC is a misnomer. I and Happy ji had concluded , that the PDC level of the close at 9:16 gives a better response to the activity of the day. Hence in the AFL he has created for me we use 9:16 levels.

Ohh Thanks for that info.
I was using previous days close till now.
Can you please share the afl where it will plot obv levels at 0916 as reference.
Thanks

 

[varunkochhar]

Manoj ji i am not at all tech savvy. For that only Happy ji can help you.