Trading With CrossOver And BB
- Thread starter docvijay4u
- Start date
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hey scorpio, great modifications, and yeah it is good to see someone using this for options. If I remember correctly ,Savant Sir, in some earlier pages said about using the crossovers in options too. Please, can you explain with some charts? Also what target profit you aim for?
Hi Prasad,
Thank you for sharing your strategy.
Mine is a bit rough at the moment and needs refining but here goes:
Long Trade
1. Look at the 30 min / 60 min charts for SMA 4 to be higher than 5 (normally OK) and diverging ( best case).
2. Check to see if stochastic (settings 8,3,4) is not in overbought zone (above 80) on both 30 min as well as 10 min charts
3. Enter trade on bullish SMA crossover on 10 min with two lots.
4. Sell one lot on BB piercing, followed by red candle or
if stochs are in overbought zone, followed by bearish crossover of stoch lines and movement downwards into neutral zone. ( on either 10 or 30 min chart)
5. Sell remaining lot on bearish crossover of SMA on 10 min. ( or when target profit is reached!!!!
All positions closed by end of day.
The reverse of the above steps apply for a Short Trade.
During trade, I always keep an eye on 30 min and 60 min charts to check market trend and watch out if position is contrarian.
Have also started projecting the NIfty Pivot points by Savant on the 10 min chart for reference. This helps early entry and early profit booking ( under testing for one week only but excellent results)
Stoploss: Generally not required as 4,5 are quite close and the crossover limits losses.
A friend and I are currently trying this on Nifty options ie lot above means one lot of ATM or OTM Call and Put if short. Reason being lower initial capital required and better returns than futures (understand risks of options
but can manage)
This strategy is a combination of all our learnings on Traderji from Savant, Pride, Doc and you. The option bit is our tweak
Do revert with your thoughts.
Will try and post charts EOD next week onwards as I am traveling this week.
Cheers,
Scorpio
Thank you for sharing your strategy.
Mine is a bit rough at the moment and needs refining but here goes:
Long Trade
1. Look at the 30 min / 60 min charts for SMA 4 to be higher than 5 (normally OK) and diverging ( best case).
2. Check to see if stochastic (settings 8,3,4) is not in overbought zone (above 80) on both 30 min as well as 10 min charts
3. Enter trade on bullish SMA crossover on 10 min with two lots.
4. Sell one lot on BB piercing, followed by red candle or
if stochs are in overbought zone, followed by bearish crossover of stoch lines and movement downwards into neutral zone. ( on either 10 or 30 min chart)
5. Sell remaining lot on bearish crossover of SMA on 10 min. ( or when target profit is reached!!!!
All positions closed by end of day.
The reverse of the above steps apply for a Short Trade.
During trade, I always keep an eye on 30 min and 60 min charts to check market trend and watch out if position is contrarian.
Have also started projecting the NIfty Pivot points by Savant on the 10 min chart for reference. This helps early entry and early profit booking ( under testing for one week only but excellent results)
Stoploss: Generally not required as 4,5 are quite close and the crossover limits losses.
A friend and I are currently trying this on Nifty options ie lot above means one lot of ATM or OTM Call and Put if short. Reason being lower initial capital required and better returns than futures (understand risks of options
but can manage)This strategy is a combination of all our learnings on Traderji from Savant, Pride, Doc and you. The option bit is our tweak
Do revert with your thoughts.
Will try and post charts EOD next week onwards as I am traveling this week.
Cheers,
Scorpio
Ganesh As I Already Told You Before, I Learned CrossOver And BB Stuff From Savant Sir, Prasad And All Fellow Members On The Forum Who Trust This Strategy. I Am Mare Follower Of These Teachings. Don't Hesitate To Ask Questions Over Here, That Would Be A Great Learning Experince To All Of Us.
MeanWhile Try To Figure Out If There Is Any Free Utility Of Charting In Software And DataFeed Section: http://www.traderji.com/software/
http://www.traderji.com/data-feeds/
Here Is How To Post Chart, May Be Helpful When You Are Ready With Charting Software For Asking Specific Questions:
http://www.traderji.com/announcements/22138-how-post-chart-image-traderji-com.html
Also Don't Hesitate To Post Your Experience With Strategy. e.g. Trade You Took With Ambuja Cement After Breaching Lower BB, LikeWise...
Thanks.
MeanWhile Try To Figure Out If There Is Any Free Utility Of Charting In Software And DataFeed Section: http://www.traderji.com/software/
http://www.traderji.com/data-feeds/
Here Is How To Post Chart, May Be Helpful When You Are Ready With Charting Software For Asking Specific Questions:
http://www.traderji.com/announcements/22138-how-post-chart-image-traderji-com.html
Also Don't Hesitate To Post Your Experience With Strategy. e.g. Trade You Took With Ambuja Cement After Breaching Lower BB, LikeWise...
Thanks.
Hi All,
I am posting the 10 min chart for the 12th. I have also marked the pivot points given by savant for the day.
At 1:30 the system explained earlier gave a buy signal (stochs and SMA cross over). The 30 min chart was also bullish. Note how 4350 acted as a pivot.
Bought 4400 call at 120, rode the wave until the BB piercing followed by red candle at 4450 where I sold for 140 :thumb:
It's a diff story that it ended the day at 160 and went on to touch 250 the next day
I am posting the 10 min chart for the 12th. I have also marked the pivot points given by savant for the day.
At 1:30 the system explained earlier gave a buy signal (stochs and SMA cross over). The 30 min chart was also bullish. Note how 4350 acted as a pivot.
Bought 4400 call at 120, rode the wave until the BB piercing followed by red candle at 4450 where I sold for 140 :thumb:
It's a diff story that it ended the day at 160 and went on to touch 250 the next day
Attachments
Scorpio,
Great trade.
20 points in options is too good. I mean, at 15k equity, you could have bought 2 lots of NF call and that would mean, 20 * 100 = 2000 (25 % of my current monthly target).
As for going till 250 is an altogether a diff story.
It would mean to hold positions overnight, which might not be a very good idea.
Great trade.
20 points in options is too good. I mean, at 15k equity, you could have bought 2 lots of NF call and that would mean, 20 * 100 = 2000 (25 % of my current monthly target).
As for going till 250 is an altogether a diff story.
It would mean to hold positions overnight, which might not be a very good idea.
Hi All,
I am posting the 10 min chart for the 12th. I have also marked the pivot points given by savant for the day.
At 1:30 the system explained earlier gave a buy signal (stochs and SMA cross over). The 30 min chart was also bullish. Note how 4350 acted as a pivot.
Bought 4400 call at 120, rode the wave until the BB piercing followed by red candle at 4450 where I sold for 140 :thumb:
It's a diff story that it ended the day at 160 and went on to touch 250 the next day
I am posting the 10 min chart for the 12th. I have also marked the pivot points given by savant for the day.
At 1:30 the system explained earlier gave a buy signal (stochs and SMA cross over). The 30 min chart was also bullish. Note how 4350 acted as a pivot.
Bought 4400 call at 120, rode the wave until the BB piercing followed by red candle at 4450 where I sold for 140 :thumb:
It's a diff story that it ended the day at 160 and went on to touch 250 the next day
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