Nifty Futures Positional Trading

[jamit_05]

I entered 6000C @ 61 and 5600P @ 22
I rolled up put leg by covering 5600P @ 14 (+8) and shorting 5700P @ 24
I entered 6100C @26 as a hedge for the weekend
I put an order to cover 6100C @28 today which didi not get executed.
So as of now the positions are :
6000C 61-76= -15
5700P 24-15 = 9
6100C 39-26 = 13
earlier profit = 8
total profit = 15

The tricky part is to hedge when nifty spot is about to cross 6000.
So far I have managed it. I plan to carry trade till expiry .

ps: I plan to enter nifty short when 315 system gives a signal. As we discussed i will enter next day after getting the signal since I follow TAME which does not give me real time EOD data for ema 3/ ema 15 crossover.

Great going with the strangle.

I hope you have thoroughly tested the 315 system.

 

[jamit_05]

Lately, I have been contemplating. If someone asked me the one reason why my trading system is profitable, then what would I answer.

One has got to know this answer. Else, he is shooting in the dark with trading.

For ex.

gmt900 would say, "315 is successful because it gives me all the big moves in Nifty."

Instead, if he said, "315 is good because its entries are awesome." Then I would be suspicious.

 

[gmt900]

Lately, I have been contemplating. If someone asked me the one reason why my trading system is profitable, then what would I answer.

One has got to know this answer. Else, he is shooting in the dark with trading.

For ex.

gmt900 would say, "315 is successful because it gives me all the big moves in Nifty."

Instead, if he said, "315 is good because its entries are awesome." Then I would be suspicious.

I think the answer would lie in what your goals are and also on your temperament.
I for one, would not like to be an "Active" trader. If I feel, I can earn equal amount of money with "Passive'' trading, I would prefer that. Add to that an advantage of lesser transaction costs and less stress.
In fact, for now I have come to the conclusion that trading with no bias towards market trend ,eg straddles and strangles would even be better if one masters the art of deftly modifying the trade as the market gyrates. I used to find it difficult to do it but a couple of threads including Dan's have been of great help.

 

[jamit_05]

I think the answer would lie in what your goals are and also on your temperament.
I for one, would not like to be an "Active" trader. If I feel, I can earn equal amount of money with "Passive'' trading, I would prefer that. Add to that an advantage of lesser transaction costs and less stress.
In fact, for now I have come to the conclusion that trading with no bias towards market trend ,eg straddles and strangles would even be better if one masters the art of deftly modifying the trade as the market gyrates. I used to find it difficult to do it but a couple of threads including Dan's have been of great help.

I, yet again, applauded the maturity and reiterate that it will be a strong reason for your success as a trader. You just have to find what suits you and trade it for years. Proficiency cannot be elusive forever.

So, the reason for success of your strategy is:

Lesser stress and expense.

Also include the fact that your risk reward ratio is around 1:1 hence your strike rate is also going to be good as they are inversely proportional. Moreover, if you learn to manage your trades well then you could further improve SR.

The market likes people who trade for normal rewards, just like any regular business like a retail store.

Great Going.

 

[jamit_05]

Am looking for shorting setups... target is 5800.

 

[manojborle]

Am looking for shorting setups... target is 5800.

I expect 5852 but the trend was too strong so may be will not retrace more than 38% which comes around 5890.

What do you think ?
I am still holding my paper trade ?

 

[jamit_05]

I expect 5852 but the trend was too strong so may be will not retrace more than 38% which comes around 5890.

What do you think ?
I am still holding my paper trade ?

Yes, 0.38 and 0.50 are good places for this downward move to stop... but you never know... if ones gets a short entry then he should trail stop it... times are uncertain.

On the other hand, we could even see a v-shaped recovery right till 6200 !!

That is the thing about massive moves.

 

[jamit_05]

The following setup supports the idea of Nifty stopping the downfall and going back up. On the other hand, if this support is broken further downside to Fib 0.50 is inevitable. (Plus, yesterday's low is a 0.236 Fib)

Option Strategist should work something around this level.

 

[jamit_05]

6028.00 is a strong resistance. For more upside price should make a clean break of it (Then 6041.) These are previous day lows and Fib levels.

Will be interested in the down side only below LOD.

I have put my long entry at 6020.45 as my entry system dictates so.
Short below 5958.85

 

[jamit_05]

It is interesting to note, that in this 50 point upmove, price has not beaten a single 1 min pivot low nor has it beaten the ema 15.

Quite clearly, as of now, the momentum is up.

PS: I am taking special care to not repeat the past mistakes and hence keeping any eye (or two) on both sides. Like I already said, I will be interested in the downside only below LOD.