NIFTY Futures Mechanical Trading

[columbus]

Derivatives, whether options or futures have their own risks and so does equity especially if you dont know what you are doing. IIRC, options positions translate to futures under the hood. Any particular reason you fancy options to futures (I do as my broker doesn't give me any exposure)?

Perhaps the LIQUIDITY of Nifty Futures is the PRIME reason why we find some nifty traders.

 

[SGM]

Thanks sanjay.

This is true that, the systam has drawdown upto 40%. what i understand is - if you have Rs. 50,000 to trade futures, than do not trade entire 50000 as a margin. Instead, trade with roughly 20-30 % of your capital as a margin. so for this case, it is better to trade with MINIFTY one lot if you have 50000 capital. once your caital grown to e.g. say, 100000, than one can add one more lot of MINIFTY or swith to regular one lot of NIFTY.

correct me, if i am wrong sanjay

thanks

Vinod

Hello Vinod

Its not the entry/exit part (rules) of the system but the amount of leverage that gives us this 40% DD. With no leverage the DD will be only 1/7th of that

Friend its not really a question of what is right or wrong, its what DD one can accept and keep trading confidently.

With your excellent effort we have here data from a system running real time for more than 9 months. Lots of lessons to learn ...

Anyway I will send you the excel sheet with leverage schemes I analysed. Don't want to add to the confusion i seemed to have introduced here ...

Regards
Sanjay

 

[praveen taneja]

Derivatives, whether options or futures have their own risks and so does equity especially if you dont know what you are doing. IIRC, options positions translate to futures under the hood. Any particular reason you fancy options to futures (I do as my broker doesn't give me any exposure)?

I like the derivatives bcoz it at least tell s u to which extent ur loss can go which is not in control in stock n nifty n moreover if u work in nifty in major downtrend broker will square up ur position if u donthav sufficint margin.In nifty n RIL options there is much liquidity then any other stock so i work in then.Pls correct me where i m wrong thnx

 

[pravinaca]

Hi Vinodji

Don't you think we should close our position today considering the volatility?

Pravin

 

[skarpio]

I like the derivatives bcoz it at least tell s u to which extent ur loss can go which is not in control in stock n nifty n moreover if u work in nifty in major downtrend broker will square up ur position if u donthav sufficint margin.In nifty n RIL options there is much liquidity then any other stock so i work in then.Pls correct me where i m wrong thnx

Well thats the wrong reason for using derivatives. There is something called stop-loss that should cut your losses, not the type of instrument you are using. The nature of the stop depends on a number of things, one of which may be the instrument you are using. In major downtrend, if you can identify one that is, you would reverse your position and go short. That should fix your brokers issues for good.

 

[addy_cool]

Dear Vinod,
Is it possible to put the next support and resistances so that one can get an idea of the next entry and the exit points. This will enable one to get the idea of taking position in the present big gap-opening market, because of big gap openings sometimes these support and resistance based on last day figures seem irrelevent.

Thanks and regards
Addy

 

[nadodav]

Hi Vinodji

Don't you think we should close our position today considering the volatility?

Pravin

Instead of closing a position, i suggest to buy NIFTY 3800 PUT @ 60 of equal lots to hedge position.

Vinod

 

[daydreamer94]

Vinodji,

Is it possible to give the hedging calls along with your daily support and resistance levels?

TIA
Daydreamer

 

[nadodav]

Dear Vinod,
Is it possible to put the next support and resistances so that one can get an idea of the next entry and the exit points. This will enable one to get the idea of taking position in the present big gap-opening market, because of big gap openings sometimes these support and resistance based on last day figures seem irrelevent.

Thanks and regards
Addy

No. It is not possible. Next support & resistance can be calculated based on daily closing.

Vinod

 

[nadodav]

Vinodji,

Is it possible to give the hedging calls along with your daily support and resistance levels?

TIA
Daydreamer

It will create lots of confusion so it is not possible.