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

Whether the latest MTP v2.2 tool is useful?

  • YES. The tool helps to take safe positions using FLOW and Renko Charts

    Votes: 26 92.9%

  • NO. The tool is not useful

    Votes: 2 7.1%
  • Total voters
    28
  • Poll closed .
healthraj

healthraj

Well-Known Member
#2,011
#2,011
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

At 1:30 PM

MAX CHG in OI at 5800PE-5900CE indicating a Trend.

5800PE @ 11.7L
5900CE @ 4.9L
Favouring BULLs, (However the overall CHG in OI indicates a SELL)
At 5700 - Squaring off happening both in CE and PE.
5900/5400 PE also getting squared off. Looking at all these seems to be some preparation for a Take off.

Yesterday's pivot of 5877 - Seems to have been taken in the morning with Gap UP opening. But it was quickly taken back by BEARS. So fresh longs only above 5887.

Anyways this sideways market seems to helping our Option Positions

Status of Pairs
In the moring @ 9:30 AM

5700-6000 - 10 points profit.
5800-6100 - 18 points profit.

@ 1:30 PM

5700-6000 - 12 points profit.
5800-6100 - 16 points profit.
 
D

dineshN

Well-Known Member
#2,012
#2,012
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

This clearly indicates, no matter how much effort we put in studying option data table, things are only going to happen their way and not our way!

Stopped out!!
 
healthraj

healthraj

Well-Known Member
#2,013
#2,013
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

healthraj said:
At 1:30 PM

MAX CHG in OI at 5800PE-5900CE indicating a Trend.

5800PE @ 11.7L
5900CE @ 4.9L
Favouring BULLs, (However the overall CHG in OI indicates a SELL)
At 5700 - Squaring off happening both in CE and PE.
5900/5400 PE also getting squared off. Looking at all these seems to be some preparation for a Take off.

Yesterday's pivot of 5877 - Seems to have been taken in the morning with Gap UP opening. But it was quickly taken back by BEARS. So fresh longs only above 5887.

Anyways this sideways market seems to helping our Option Positions

Status of Pairs
In the moring @ 9:30 AM

5700-6000 - 10 points profit.
5800-6100 - 18 points profit.

@ 1:30 PM

5700-6000 - 12 points profit.
5800-6100 - 16 points profit.
Click to expand...
AS I mentioned that the Overall CHG in OI indicates a SELL, the market crashed. But our Pair trading is in tact.

As mentioned before the 5800-6100 pair was risky, it is now at our cost
5700-6000 pair is safe now.

5800 PE has the maximum CHG in OI - So market will not break 5800 today.
 
Last edited:
P

prabhsingh

Well-Known Member
#2,014
#2,014
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

healthraj said:
AS I mentioned that the Overall CHG in OI indicates a SELL, the market crashed. But our Pair trading is in tact.

As mentioned before the 5800-6100 pair was risky, it is now at our cost
5700-6000 pair is safe now.

5800 PE has the maximum CHG in OI - So market will not break 5800 today.
Click to expand...
On hourly time frame,traingle formation exists and there might a breakout happening on long side.Today market should recover if traingle breakout is true and close in green.If not close in green atleast should not go below 5780.
 
Last edited:
healthraj

healthraj

Well-Known Member
#2,015
#2,015
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

dineshN said:
This clearly indicates, no matter how much effort we put in studying option data table, things are only going to happen their way and not our way!

Stopped out!!
Click to expand...
Agreed and we cannot also make profit in all our trades. So I think it would be better to do some pair trading in NIFTY Options rather than trading Futures.
 
O

Option.Trader

Well-Known Member
#2,016
#2,016
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

healthraj said:
Agreed and we cannot also make profit in all our trades. So I think it would be better to do some pair trading in NIFTY Options rather than trading Futures.
Click to expand...
I strongly suspect that you can't trade more than 2pairs per month with 1l kitty , the premiums don't favor as weeks decrease
 
G

gmt900

Well-Known Member
#2,017
#2,017
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

I feel at present( rest of July series), it is better to avoid taking a directional call. It is prudent to stick to pairs although it means lesser profit.
 
T

tharun232

Member
#2,019
#2,019
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

healthraj said:
Is it possible to make 652 lakhs in 497 Trading days with a starting capital of 1 lakh using NIFTY Futures.

Yes theoretically it is possible.

So what is the Principle behind this strategy?

1. NIFTY is Trending only 20-25% of the time and so why always take 20 points Stoploss when 80% of the time you are going to loose. Why not take 7-10 points loss and close the trade if stoploss hit.
2. 20-25% of the time when the market is trending, NIFTY never crosses the opening price by more than 10 points. So in those cases NIFTY always gives on an average 55 points on the LONG side and 77 points on the SHORT Side.
3. 80-20 Principle. 80% of the losses comes from 20% of the trades and so 80% profit can come from 20% of the trades.
4. Why do we need to spend hours before the monitor, while we can spend maximum 30 minutes a day. (15 minutes during opening and 15 minutes during closing)

So let us say we do hundred trades.
75 trades with a loss of 10 points = 750 points loss
25 trades with a gain of 65 points = 1625 points gain
Net gain = 875 points in 100 trading days.
If you started trading with a capital of 1 lakh and 2% Risk, the profit would be Rs 1,75,000.
With pyramiding (reinvesting the profit ) it would turn to crores.

Attaching the excel sheet with the backtested results with the data of last two years for NIFTY.

Also attaching back tested result for the SBIN stock. SBIN unlike NIFTY falls in the 50:50 category. ie 50% of time is trending and 50% it is Rangebound. So it is one of the highly Trending stock. The Parameters are different for SBIN. For eg... your stoploss should be around 1% in SBIN where as for NIFTY your stoploss should not be more than 0.2%.


Will explain the strategy in detail in the next post.

Please visit the post number 839 for Latest links and Settings to be done for the Excel tools

http://www.traderji.com/advanced-tra...tml#post720252

Attaching the excel sheet with the backtested results with the data of last two years for NIFTY.
Click to expand...
hello.
i cannot find the excel sheet of nifty futures
please tell me
 
O

Option.Trader

Well-Known Member
#2,020
#2,020
Re: 1 lakh to 652 lakhs in 497 trading days - Winning 20% of Trade in NIFTY Futures -

prabhsingh said:
On hourly time frame,traingle formation exists and there might a breakout happening on long side.Today market should recover if traingle breakout is true and close in green.If not close in green atleast should not go below 5780.
Click to expand...
Triangle break down today. So does this remove all signs of bullishness going ahead
 
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