NIFTY Futures Mechanical Trading

[nadodav]

Are you sure at the end of the year gap downs will negate the gap ups?

I'm of the opinion gaps down would be more than gap ups,I am not sure about this is I have not calculated for myself but this is what my thinking tells me may be possible. Because declines are always sharper than rallies...

Hello marcus

I agree that gaps down is sharper than gaps up and may be at the end of year, gap down be more than gap ups. but my points is - as the method is following a trend, gaps up and gaps down both, atleast 60%, will be in our favour and rest 40% may be against. so overall it should not affect our over all result. you can check the 6210 short trade, where there are gaps down for some days and all are in favour. Gaps up or down will definetely affect when there is rangebound or sideways period. And not only in my model but any trend following system this should be applicable.

I always welcome & truly appreciate your suggestion to improve the system & it also helps me a lot to re-look some areas of my system to do a better one. thanks for that.

Thanks & Regards

Vinod

 

[nadodav]

Marcus,

It would also matter whether we are long or short at that particular time.

If we are short, Gap downs would be in our favour and gap ups would be not be in our favour. Since according to your analysis, gap ups are not as strong as gap downs are severe, going short seems to be better proposition. Appreciate your analysis.

It would be interesting to see if we can work out options strategies using these support and resistance levels as kind of benchmark.

That is to say, By trading options (not hedging) instead of Nifty Futures we can definitely leverage our funds better.

We all know that this system is working fine and support/resistance levels are also good. Point is can we work out options strategies??

Vinod, do you think it is viable??

Thanks & Regards

Dear ravalsb,

I don't think it will be viable to trade options instead of futures with my system as we have to race with time. options should be traded either for hedging purpose or with options strategies.

Vinod

 

[optionstrader]

Hi Friends,

I am stuck with Nifty Feb Futures purchased at 5200...averaged at 5095..

I need your guidance , shall i average it more, hold it or book loss at 4800 or 4900.

I need your guidance, that will help me to make up my mind.

Awaiting your quickest response,

Thanks & Regards,
optionstrader

 

[nadodav]

NIFTY FUTURE For February 13,

Current position : NIL

Nifty Fut Closed at : 4795.35

Net Profit / (Loss) since thread started : +926

Support : 4776
Resistance : 4900

I will go LONG above 4900 with SL 4776.

All new members visiting first time are requested to read all messages start from first one before going ahead.

Happy Trading.

Vinod

 

[nadodav]

Hi Friends,

I am stuck with Nifty Feb Futures purchased at 5200...averaged at 5095..

I need your guidance , shall i average it more, hold it or book loss at 4800 or 4900.

I need your guidance, that will help me to make up my mind.

Awaiting your quickest response,

Thanks & Regards,
optionstrader

Hi

Its difficult to advise only i can suggest is to decide one fixed stoploss whatever you feel as per your risk appetite and hold your position strictly with that stoploss. Futures trading should be done with strict stoploss. I do not believe in averaging in futures trading. it is ultimately your money and only you should decides better. As per my system of trading, i will go long tomorrow if nifty futures trades above 4900 with stoploss as 4776 this is just for your information and if tomorrow market trades above 4900, you can hold your position with my stoploss as 4776 if you feel comfirtable.

Thanks & Regards

Vinod

 

[sudoku1]

Hi Friends,

I am stuck with Nifty Feb Futures purchased at 5200...averaged at 5095..

I need your guidance , shall i average it more, hold it or book loss at 4800 or 4900.

I need your guidance, that will help me to make up my mind.

Awaiting your quickest response,

Thanks & Regards,
optionstrader

ITS WELL SAID THAT .....WHEN IN DOUBT , GET OUT....
if u r confused , try exiting 50% positions till u feel comfortable....
after that , whichever way the mkt goes , u will b stronger than before....
how...?
if the mkt still reels down , u will have a light longs & suppose , it makes a bottom from wher u exit ur 50% , still u will b able 2 ride the uptrend...

 

[arjit]

Dear Vinod,I am happy that at last you have decided to take position.It will help us to take position accordingly.You are most WELCOME.Thanks.

 

[optionstrader]

Hi sudoku1 and Nadodav !

Thank you so much for prompt response and support.
You have encouraged me.

Could you please also guide me , that shall i sell 1 lot at the price nearer to my average price of 5195....for example...at 4800 or 4900 ?

I guess , since nanodev said that he plans to go long of nifty trades above 4900.

What would you suggest, that shall i hold my position as nanodev said, or shall i sell 1 lot at 4800 or 4900 tomorrow ?

Kindly help me out to clear this also.

Awaiting your quickest response,

Thanks & Regards,
Optionstrader

 

[marcus]

Marcus,

Appreciate your analysis.

Ur very welcome, we're a team here working towards the advancement of out little traderji society, at least thats my attitude hope you agree, I believe the more you give and share the more you get.

It would be interesting to see if we can work out options strategies using these support and resistance levels as kind of benchmark.

Well options are good trading instruments, but agree with Vinod on this one, his strategy may not be suited for options as well as it is suited for futures, but I encourage you to experiment and let us know.

That is to say, By trading options (not hedging) instead of Nifty Futures we can definitely leverage our funds better.

Quite correct options on the whole are higher leveraged but when calculating leverage of options slight addition is to be made to take into account delta.

Point is can we work out options strategies??

I encourage you to try and tell us the possibilities even if its not viable, tell us why its not viable, I and I think Vinod as well would welcome your
participation.

marcus

 

[marcus]

Hello marcus

I always welcome & truly appreciate your suggestion to improve the system & it also helps me a lot to re-look some areas of my system to do a better one. thanks for that.

Thanks & Regards

Vinod

Anytime Vinod, please continue your good work ..... I am happy to see you are teaching our members the importance of discipline which is vital to success in mechanical trading and that you welcome participation from our members.

One point I would like to raise, is about the calculation of the support and resistance levels. Although I do not trade your system I respect your decision not to disclose your method and I agree with you that it is not as important as discipline in trading but at the same time I would like to request our members to begin experimenting by calculating support and resistance of their own methods perhaps start with pivots, fibonacci pivots, carmilla pivots and their combinations. Paper trade till you find an acceptable calculation method. This is because if for any reason Vinod is unable to post his levels (which he has been doing diligently) you will not be totally lost or dependent on his levels. You will have the confidence to trade on your own without any assistance. You will be completely independent.

Hope my point of view is taken in the correct context.