Paper Trade of Options

[trader.trends]

Isn't the lower breakeven at 5416?
Your total inflow is 1,78,660
At 5616
16*500 on 55CE = 8000
84*200 on 56PE = 16,800
184*500 on 57PE = 92,000
The total outflow is 1,16,800
The total outlfow becomes zero only at 5416, or have I understood it wrongly?

 

[trader.trends]

Ok it is a typo on your part. The table shows the lower breakeven at 5416.

 

[linkon7]

paper trading somehow doesn't give us the same emotional roller coaster ride that real time trading can give. It does help as confidence building measure. But to build confidence, why do u need to spend next 6 months to get 6 sample data where a single trade is spanning across the whole month almost.

After all, your basis of paper trading is under the assumption that history repeats itself. based on 6 months data, you plan to put real money at work based on your findings.

Simple solution is to download futures bhavcopy of the last 2 years, use that to fill your data series and u already can make a fair idea if your strategy has worked on the past 24 sample trades...

 

[columbus]

paper trading somehow doesn't give us the same emotional roller coaster ride that real time trading can give. It does help as confidence building measure. But to build confidence, why do u need to spend next 6 months to get 6 sample data where a single trade is spanning across the whole month almost.

After all, your basis of paper trading is under the assumption that history repeats itself. based on 6 months data, you plan to put real money at work based on your findings.

Simple solution is to download futures bhavcopy of the last 2 years, use that to fill your data series and u already can make a fair idea if your strategy has worked on the past 24 sample trades...

Yeah,Paper Trading totally kills the concept of MARGINS,so better stick to
Minifty.

 

[munde_77]

Thanks Linkon for your suggestion. I am planning to try 3/4 different strategies. I also want to watch and observe the changes in prices in real time. Theoritical is ok but I need to see how it effects in real time. I am not going to keep and wait for the whole month till expiry.I have some ideas in mind for adjustment in position size and strike prices. So I just want to see how adjustments can me made and how it works. Here we have to adjust the strike prices many times as the market moves up or down. This strategy is not just write and wait till expiry.

 

[munde_77]

Yeah,Paper Trading totally kills the concept of MARGINS,so better stick to
Minifty.

Columbus , I have already mentioned in my earlier posts, that these type of strategies cannot be traded with small capital. We need to do a lot of adjustments in position size and strike prices in between the expiry. Here the strategy used mainly will be selling options

 

[munde_77]

The strategy I am initiating here is not buy and hold or sell and hold till expiry.These strategies will need a lot of adjustements in strike prices and position size. BACKTESTING will be of no use for this strategy. I have some ideas about adjusting postion size and various strike prices. The idea is to get 75 to 100 points consistently per month. Some months we may get 150 points and some month we may not Also there will be no /neglible loss for some months. This strategy is 70 % trading and 30% holding for long term. I will try to hold more (short) pe as I want to buy nifty index at low rate for holding long term. This strategy is not purely trading but trading with long term bias for long term holding.

 

[munde_77]

I will cover 100 qty pe of 5600 and write 100 qty pe 5800 if nifty closes above 5700

 

[munde_77]

As on 04/07/2011

 

[munde_77]

As on 05/06/2011