SH's 315 Strategy - how to use if effectively

[observer]

RCOM fut is bouncing on 3ema, cannot decide when to re-enter.

SH, suggest me a re-entry price.

 

[geetakapour]

its really a good trading system, thanx all for sharing the views i vl now follow it and then share the exp

 

[Tradewithhunter]

Dear SH,
I made that move on 31-12-09. The switch cost me 12 points. But even as of yesterday when the nifty was at 5190 the 5300 call was at 95 [the call was sold at 85 on 31-12-09] . If nifty breaks the 5300 barrier we could exit the 5300 call at about 100. Cann't thls be generally adopted when price is not touching the 3 EMA instead of exiting our positions.

Thanks

Dear Forestflower,

Yes this is also a good way of exploiting the 3 EMA situatuions. Instead of exiting longs and entering on dips at 3 EMA, we can continue to hold longs but write an ATM call. The written call is completed covered by the futures.

Cheers
SH

 

[observer]

Dear Forestflower,

Yes this is also a good way of exploiting the 3 EMA situatuions. Instead of exiting longs and entering on dips at 3 EMA, we can continue to hold longs but write an ATM call. The written call is completed covered by the futures.

Cheers
SH

Could this be explained in step by step manner? I am not very familiar with option strategies.

Thanks

 

[Tradewithhunter]

Finally entered in longs now at 3 EMA touch ... at 5263.

Cheers
SH

Holding onto longs right now.

Cheers
SH

 

[forestflower]

Holding onto longs right now.

Cheers
SH

Dear SH,
Good to hear from you.

thanks:thumb:

 

[Tradewithhunter]

Holding onto longs right now.

Cheers
SH

Seems mkts want to test the previous resistance tops (5190-5200) which is exactly where our 15 EMA is sitting as well.

Cheers
SH

 

[sureshciyer]

Actually I too took my first baby step into real trading in futures this week. I too did similar analysis and entered long when Nifty was 5263 two days back. However by end of the day, the Nifty was at 5249 and nearly Rs 900/- money was deducted from my account. Yesterday again Nifty went up for a brief period and by the end of day it was at 5250+ I suppose and I saw that around 300/- rupees were credited to my account. Honestly, I could not figure out the math i.e if I keep it long say for 50 points ( I did not mean to say my exit condition is 50 points.. my exit criteria would be when the bar moves above 3 EMA)However for academic discussion, say I would have exited at 50points, my gain would be Rs 2500 /- ? What I could not understand was how to take care of this day to day credit/debit of amount affect till the day I exit at 50 points gain ? What would be my net gain ? I am not sure whether I phrased my question well, was typing as thinking.. Anyways, I thought I should get this clarified. So to avoid further complexity, I put a limit order today at 5285 and it hit this price today and I sold the lot. I need to get some more clarity on what kind of backup amount I should keep in my account, how to take care of this day to day adjustment and how it affects my gain when I finally exit the deal etc. Any thoughts in this direction would be greatly helpful.

 

[Tradewithhunter]

My trade size is one lot Nifty per 50K capital I have in my account.

SH

 

[sureshciyer]

Hi SH,

A quick question. Will you go for adding another lot if today's high crosses over yesterday's high and stay long ? The other condition for adding new lot (candle touching the 15EMA has occurred for NIFTY I suppose). Since there is volatility I was wondering whether adding another lot is a prudent action or not. Thanks.