Dear Pannalalji,
I never checked the probability of a strike price reaching or not...for me any number you say is reachable in markets. I wont go with probability for that reason. However your way of analysing makes sense but only problem i feel is how many of us have patience to hold on to the trade even if its in loss?
If you trade with real money in market, you will exit when you see a huge loss but it may come to profit in later stage but I feel its more about mental strength rather than the strategy itself. So whether you use software or algo doesn't matter much.
I know people may get offended by this post but truth is one has to try the strategy with REAL money in market to get to know how he behaves when market goes against him and test for min 1 year!!!!:thumb:
I never checked the probability of a strike price reaching or not...for me any number you say is reachable in markets. I wont go with probability for that reason. However your way of analysing makes sense but only problem i feel is how many of us have patience to hold on to the trade even if its in loss?
If you trade with real money in market, you will exit when you see a huge loss but it may come to profit in later stage but I feel its more about mental strength rather than the strategy itself. So whether you use software or algo doesn't matter much.
I know people may get offended by this post but truth is one has to try the strategy with REAL money in market to get to know how he behaves when market goes against him and test for min 1 year!!!!:thumb:
That is the exact point. We need to reduce loss to minimum. As soon as market starts going against you, either close the trade or hedge your position.