Regular Income From Markets. Risk Free. Takes no Time

[augubhai]

Re: Valuable (Golden) Research.

Hi Augubhai,

Are you using the Strangle strategy or using a naked call or Put.
Can you please explain your system in little more detail?

What I posted were Futures trades, not related to the core subject of this thread. I just posted in this thread to show that my observations about the daily movement/range was similar to Amit's observation, though with a different system.

The data shows that some days are more likely to be rangebound than others. This is a statistical edge, and even one statistical edge, if used properly, can make you a profitable trader.

(But the data that I provided is small, and needs to analyzed over a larger period)

 

[Laksh]

Re: Valuable (Golden) Research.

What I posted were Futures trades, not related to the core subject of this thread. I just posted in this thread to show that my observations about the daily movement/range was similar to Amit's observation, though with a different system.

The data shows that some days are more likely to be rangebound than others. This is a statistical edge, and even one statistical edge, if used properly, can make you a profitable trader.

(But the data that I provided is small, and needs to analyzed over a larger period)

My observation also agrees with yours at the current phase of the market; but these characteristics of the days of the week keep on changing. However, the change comes after months of persistence.

Laksh

 

[jamit_05]

Thank you Jamit_05

Your strategy fetched me Rs. 460 today and that too without any tension in mind about the markets direction. Thankyou.

soft_trader,

I read an ever so correct quote in ST da's signature. I says to the effect that, some traders lose-out due big losses and some traders due to small gains.

One should keep gains in proportion to losses. In this method, the ratio should be 1.25 or 1.5 at best.

If established, this method will be traded for months or years for consistent returns. Hence, the focus is on getting a reality grip on the do's and dont's of this method. Once confident, the trader can gradually increase position size to his capacity. Then these profits will appear small....

 

[jamit_05]

LOSS POTENTIAL

The potential of loss in directionless OTM options trades needs to be analysed.

So far we have had one losing trade in longs. The loss was nominal, but the DD was near 12%. Since, we are betting of Thurs and Fri we will be required to hold position for two days. We can consider that in one or two days time the loss can be as much as 15%. This is worst case scenario.

Therefore, I am inclined to set a profit target of 15%; Meaning, if I exit below it due to temptation or whatever, then it is likely that the nett result of 20 trades may not be positive.

The profits we have accumulated so far (refer to the excel sheet), the average gains are 14% in 4 winning trades (12,12,21,12);

 

[gurmy.]

dear jamit
do u plan to buy today(its friday)

than which pair 49/51 or 50/52

or would u prefer to buy on monday prior to rbi policy
thanks

 

[jamit_05]

dear jamit
do u plan to buy today(its friday)

than which pair 49/51 or 50/52

or would u prefer to buy on monday prior to rbi policy
thanks

purchased 50/52 at a cost of 108.80;
increased position size by 10% as the method has been very successful thus far.

 

[jamit_05]

Let us see what cost Friday prints at EOD.... if it recedes enough then it is pointless to exit and re-enter on Monday.... if it does not recede then we may have to re-consider... in either case we must load up before RBI decision.

 

[jamit_05]

Over the weekend, Greece is going to make an important decision.

 

[jamit_05]

It is highly likely that today will be a dull day. Since, Big Boys will wait for RBI decision and Greek dilemma to be resolved.

Next week is going to be memorable.

 

[jamit_05]

An excellent Opportunity


It has been my observation that last week on Friday EOD the 50/52 pair was trading at 116. Now, it is Friday again and the cost is 111. Only Rs.5 correction in a week. This is where the opportunity lies.

It appears as though traders have lapped up positions to benefit from RBI decision causing the premiums to hold. Soon after, these positions will be unloaded and the entire 10 day time-decay will kick-in within a day or two.

How to benefit from this "kick-in"?

After RBI policy... around Monday EOD... if the premiums are still on the higher side.. more than 110... then we will short 100 OTM options with a strict SL of 15%; The prices are, then, expected to go sideways for at least two days. On the flipside, they could continue the momentum hence the stop loss.