Nifty Futures Trading Part 2 (Positional)

[dumdum20008]

Hi dumdum,

Good system and good pick even in choppy market. Hope we can try this in stocks too.

Regards,

i dont deserve the credit, its actually testing of sir Mark Fisher's "ACD trading system". I just read his first chapter on ACD system n thought of application on NF. Only unknown thing was to set his A and C values, which r their proprietary resarch values not for sharing. So i just use those values as per ATR. I traded intraday 5 min candle chart of NF on Monday, Tuesday and today for 12 points gain on each trade using his ACD system. best thing was the control of psychology which came in trade after i read that chapter from his book. It backs very much.

 

[trillian]

i dont deserve the credit, its actually testing of sir Mark Fisher's "ACD trading system". I just read his first chapter on ACD system n thought of application on NF. Only unknown thing was to set his A and C values, which r their proprietary resarch values not for sharing. So i just use those values as per ATR. I traded intraday 5 min candle chart of NF on Monday, Tuesday and today for 12 points gain on each trade using his ACD system. best thing was the control of psychology which came in trade after i read that chapter from his book. It backs very much.

hi dumdum,

will you close your postn on intraday basis? Can we try this method for whole week?

Thanks for your reply

 

[dumdum20008]

hi dumdum,

will you close your postn on intraday basis? Can we try this method for whole week?

Thanks for your reply

i think you r missing,
look, if you wnt to trade intraday then "Opening Range" for that day can be chosen as first 5 min, 10 min or 20 min or whatever trader is comfortable with.( for intraday trade too much wide opening range is useless) And best thing is to close position in intraday.
system can be applied on any time frame with their respevtive values ( A and C). My post

http://www.traderji.com/derivatives...trading-part-2-positional-562.html#post268874

was for this week trade, where opening range was chosen as monday's high-to-low comprising whole day time ( 335 minutes) and trade may arise any time in week depending upon market condition. its possible to not get any trade in very choopy market, so sit back and watch or try same setup next week. Luckily this time it gave trade on tuesday itself in short side when NF traded below 2781 continuously for half of day ( 168 min). One should trade only if "time conditions" met as according to Sir Fishers method.

 

[dumdum20008]

As markets remain in trend for approx 30% time and in sideways for approx70% time, so a trding strategy as discussed in post,

http://www.traderji.com/derivatives...trading-part-2-positional-560.html#post267811

(namely short straddle) almost always comes alive in last fortnight of expiry.
Best to execute on friday end session, with strike near to spot. here is performence of that short straddle with strike 2800,

16-01-2009(Fri)
------------
[CE(2800)+PE(2800)] credit = 102+86=188
NF = 2816
Vix = 44.3

19-01-2009(Mon)
------------
[CE(2800)+PE(2800)] credit = 97+73=170
NF = 2827
Vix = 44.46

20-01-2009(Tue)
------------
[CE(2800)+PE(2800)] credit = 72+92=164
NF = 2775
Vix = 45

21-01-2009(Wed)
------------
[CE(2800)+PE(2800)] credit = 25+148=173
NF = 2672
Vix = 45.41

Trade of Friday, comes in profit right from monday, even NF more or less behaves normal "sideways", and even after today's strong "trend", its in profit compared to friday levels. No fear, one can always exit if they want 15-20 points profit with same amount of risk ( tue to wed). im happy with small but almost sure gain.
Eeven a small rise in VIX is offseted with time.

[Note: all values from NSE LTP.
please dont throw brokerage+ tax, question, they are already gone down to penny,
short straddle are subjected to adverse risk of high crash as in jan-2008 and oct-2008.]

 

[VJAY]

Hi dumdum,
I not understand your method(sorry fisher sir's).First going to your posts then come with doubts please clear it.

Regards
VJAY

 

[orderflow13]

dumdum, thanks really for explaining this new concept

 

[myvineet]

As markets remain in trend for approx 30% time and in sideways for approx70% time, so a trding strategy as discussed in post,

http://www.traderji.com/derivatives...trading-part-2-positional-560.html#post267811

(namely short strangle) almost always comes alive in last fortnight of expiry.
Best to execute on friday end session, with strike near to spot. here is performence of that short strangle with strike 2800,

16-01-2009(Fri)
------------
[CE(2800)+PE(2800)] credit = 102+86=188
NF = 2816
Vix = 44.3

19-01-2009(Mon)
------------
[CE(2800)+PE(2800)] credit = 97+73=170
NF = 2827
Vix = 44.46

20-01-2009(Tue)
------------
[CE(2800)+PE(2800)] credit = 72+92=164
NF = 2775
Vix = 45

21-01-2009(Wed)
------------
[CE(2800)+PE(2800)] credit = 25+148=173
NF = 2672
Vix = 45.41

Trade on Friday, comes in profit right from monday, even NF more or less behaves normal "sideways", and even after todays strong "trend" its in profit compared to friday levels. No fear, one can always exit if they want 15-20 points profit with same amount of risk ( tue to wed). im happy with small but almost sure gain.
Eeven a small rise in VIX is offseted with time.

[Note: all values from NSE closing.
please dont throw brokerage+ tax, question, they are already gone down to penny]

good idea dumdum..

but if we keep trailing stoploss using charts of put & call ..then can't it give better result ? means when call is going down ..we didn't cover it only trail it acc to pivots made in call chart ..same in put when it is goes to 73 at monday evening we keep sl at 85..when put goes to 85 we cover our put leg of trade

in this way we get full value of decrease in call value & cover the loss making put..

honestly i never trade this ..it just came to mind when i am reading your post & i thought of sharing with you all ....

really now my eyes are on look out for pivots everywhere...

thanx

vineet

 

[MaxX]

dumdum, as both the strike prices are same it is the straddle and not the strangle.. good info though!

 

[dumdum20008]

good idea dumdum..

but if we keep trailing stoploss using charts of put & call ..then can't it give better result ? means when call is going down ..we didn't cover it only trail it acc to pivots made in call chart ..same in put when it is goes to 73 at monday evening we keep sl at 85..when put goes to 85 we cover our put leg of trade

in this way we get full value of decrease in call value & cover the loss making put..

honestly i never trade this ..it just came to mind when i am reading your post & i thought of sharing with you all ....

really now my eyes are on look out for pivots everywhere...

thanx

vineet

thanx vineet,
your views and trade application to straddle are true and very often a smart dynamic ( im not ) trader makes this job in similar positions which involves 2 or more option legs.
But this way( as u suggested) is more towards capturing the movements ( in option terms : trading the delta)as we do in normal trading, rather than capturing the time decay and decrease in volatility ( in option terms :trading the theta and vega).
Its like pennut which often comes without head scratching and so attracts.
Let the weekend earn for us
(But beaware of market crashes like jan/oct-2008-- In option terms : "sau(100) sunar ki ek(1) luhar ki")

 

[dumdum20008]

dumdum, as both the strike prices are same it is the straddle and not the strangle.. good info though!

ooh their similar names always confuse me,
thanx letme correct some previous posts.