SH's 315 Strategy - how to use if effectively
- Thread starter Tradewithhunter
- Start date
Dear SH
I have a query with regards to one of your profit booking rules:-
Quote
3. Nifty moves in 'greater fool's zone' - The greater fool's zone is explained under a different thread. We book futures and buy options to lock in profits. After this, if nifty continues the trend, option will continue to make money. If nifty reverses towards 15 EMA ... exit can be done when point 2 above happens. The greater fools zone can be touchedat any time during the day
Unquote
For the first 2 profit booking rules, you have clearly mentioned when to re-enter. But for this above rule, I am unclear when to re-enter.
Suppose I am short, market falls and enters the greater fools zone, I book profits. I buy options. Now there are 2 cases:-
1. If nifty continues to fall and no crossover of 3 EMA and 15EMA happens for the next 2 months what do we do? After say 15 odd days the options will expire with huge profits. What is to be done after that? I am out of the market at this point, should we enter shorts futures again on expiry day when the options expire?
2. If nifty moves up and touches 15EMA. You have mentioned that we book the options if "Rule 2" validates(3 EMA moves in adverse direction for 2 days). Accordingly we book the options(at some loss) and when 3EMA moves in our direction the next day, we open the put options positions again or we open shorts futures?
Kindly clarify. All the other things mentioned by you are crystal clear and I really appreciate for all your efforts.
PS:- If this query is already raised and answered, other active members can redirect me to that post, thank you.
Regards,
ptk
I have a query with regards to one of your profit booking rules:-
Quote
3. Nifty moves in 'greater fool's zone' - The greater fool's zone is explained under a different thread. We book futures and buy options to lock in profits. After this, if nifty continues the trend, option will continue to make money. If nifty reverses towards 15 EMA ... exit can be done when point 2 above happens. The greater fools zone can be touchedat any time during the day
Unquote
For the first 2 profit booking rules, you have clearly mentioned when to re-enter. But for this above rule, I am unclear when to re-enter.
Suppose I am short, market falls and enters the greater fools zone, I book profits. I buy options. Now there are 2 cases:-
1. If nifty continues to fall and no crossover of 3 EMA and 15EMA happens for the next 2 months what do we do? After say 15 odd days the options will expire with huge profits. What is to be done after that? I am out of the market at this point, should we enter shorts futures again on expiry day when the options expire?
2. If nifty moves up and touches 15EMA. You have mentioned that we book the options if "Rule 2" validates(3 EMA moves in adverse direction for 2 days). Accordingly we book the options(at some loss) and when 3EMA moves in our direction the next day, we open the put options positions again or we open shorts futures?
Kindly clarify. All the other things mentioned by you are crystal clear and I really appreciate for all your efforts.
PS:- If this query is already raised and answered, other active members can redirect me to that post, thank you.
Regards,
ptk
Last edited:
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