1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures - Bac

[anup]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

@Raj: consider OI also, It will also add...And how do u calculate market price and theoretical price ?

 

[anup]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Raj, No updates after 10th what happened?..

 

[Option.Trader]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

On top of this we can use other stuff like
1. Theoretical Price Vs Market Price - If market price is cheaper than the Theoretical price then it would be good to buy. Vice versa for selling.

2. We can also use Implied Volatily (IV) to choose our strategies. For Retail traders who usually Buy Options... The General rule on IV is to buy Options only when IV is low. Once again what is low is questionable. So we can calculate the Average IV for the day and choose the strike if the IV is less than Average IV. (IV is in fact derived from Theoretical and Market price). The market price would be normally higher than the Theorectical price. But if it goes below the Theorectical price then it might be a Opportunity to Buy.


Some of the Options Recommendations that could be automated based on IV are

IV Low and Market Bearish - Buy Naked PUTs
IV Low and Market FLAT - Buy Straddles and Strangles
IV Low and Market Bullish - Buy Naked CALLs

When the IV is Neutral - Do nothing - Do not Trade

When the IV is High - Good for selling - So it would be the reverse of the IV Low

IV High and Market Bearish - Sell Naked CALLs
IV High and Market FLAT - SELL Straddles and Strangles
IV High and Market Bullish - SELL Naked PUTs

There are more complex strategies like Spreads, Butterflies which would be difficult to Automate.

Saw this thread late... i was suggesting something on similar lines before. The Option data from NSE chain is available. i think a simple rule could be applied
a) For calls
- a +ve change in price (indicated by "net change") with +ve change in OI indicates long build up... Trend is up
- a +ve change in price with -ve OI indicates long unwinding..i.e call writers are panicking and a strong bullish bias

- a -ve change in price with a +ve change in OI indicates call writing.. i.e shorts are getting in system... trend is down

 

[jaydeep malhotra]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

which source MTP tool use to backfill future data?

 

[ashis_ch]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Hi Healthraj

how's your OTP trades are going on ?..could you plzz put your reasults here ?
is it net profitable till today ?

thanks

 

[quicjoin]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Hi Healthraj,
I could not see any link to download your strategy (excel or any other file).
From where can I download?

 

[rakeshshastri]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Hi Healthraj,
I could not see any link to download your strategy (excel or any other file).
From where can I download?

Hi,

you can find the download link in HealthRaj's signature. For example on the post #1592 the link is there.

Cheers!
:thumb:

 

[bulltrader]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

In my Rules I have actually considered only "Change in OI" and not OI because OI by itself does not convey much.

Hi Raj,

Its been days since we last heard from you.
How are you ?Howz your trading going?
What happened to the new tool for options? Are you still working onit?

Regards,
Bull trader

 

[healthraj]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

Hi Raj,

Its been days since we last heard from you.
How are you ?Howz your trading going?
What happened to the new tool for options? Are you still working onit?

Regards,
Bull trader

@Bulltrader and Others,

I am currently out of India and not able to Trade or work on the tools. I will provide the options tool once I am back to India.

 

[timepass]

Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

@Bulltrader and Others,

I am currently out of India and not able to Trade or work on the tools. I will provide the options tool once I am back to India.

Hello Raj,

When you find time, there is another strategy - Turtle Soup Trading - which appears to be successful and is becoming very popular here. Maybe an excel tool can be developed for this.

check this thread.

http://www.traderji.com/technical-analysis/78632-turtle-soup-traders.html