Testing Strategy for Breakout Trading through Future and Options

[rajputz]

@Raiputz

Super. And yes: When I see different legs in one sheet, I automatically start to look at them as a whole setup and so on and on. Never mind, as I was trained to do it like that for a long time. Looking at each leg just for enlightenment is a good idea. As you ask for discussion about: "How to exit", what do you expect how it should go on?

Execute here and there on this level because of this TA signal or what so ever or how should the discussion be done or started?

Main question: What is your market outlook for IBULHSGFIN?

Basically there is no outlook

It just broke a channel. Simple maths. Price moves up by only breaking previous high channel. Price moves down by only breaking previous low channel. Add to it volume. Add it to it for basic trend the 50/200 ema were below it. So got a trend.

First Exit for me would have been a desired previous resistance level. That was a previous high from where it fell. In this case it is breaking an all time high. So question is, where to exit as it may hit highs like AuroPharma (who knows) but who knows that it is heading for a bubble too. :annoyed:

Or a mental point to take a profit or let it expire with the luck that might be the case of getting all profits eroded up.

Cause the whole point is that in case of falls breakout there might be some losses or many losses as we are risking little of our capital. So one right breakout must be good enough to cover all losses, generate great profit and leave us rich :thumb:

Thats the master end I want.

 

[Somatung]

Not an easy wish, but a target.

Now we still would talk about a whole, clear trading plan with still a little strategy and some MM. As you want to use two different derivatives, it always will have some thing to do with a strategy and if an option is included, it always will be some kind of option strategy. This just to take away any negative thoughts or feelings against the word "Option strategy". In this case the meaning of it will or would just be as normal as water is made out of H2O. Hope others will comment on your above post in there way. :thumb:

 

[rajputz]

Till 12 Jan, 2015

Holding Good.

Stock Call/Put/Futre Buy/Sell Strike Lot Entry Exit Buy Sell Profit/Loss
IBULHSGFIN CALL BUY 470 500 02-Jan-14 27 36 4400

ASHOKLEY CALL feb BUY 60 8000 05-Jan-15 1.55 3.85 18300

 

[rajputz]

Hindustan Zinc Just near the last support level. Waiting for it to break or bounce.

Now the trader inside me tempting very much to get into it. If bounces then trader says to go long. If breaks then shorting. Lets c what it gives tomorrow.

Rest both still long. No exit yet.

 

[Somatung]

Hindustan Zinc Just near the last support level. Waiting for it to break or bounce.

Now the trader inside me tempting very much to get into it. If bounces then trader says to go long. If breaks then shorting. Lets c what it gives tomorrow.

Rest both still long. No exit yet.

What is the trader inside you telling you or attemting you to not do it: Does he want a pure directional trade or pure non directional trade?

 

[rajputz]

What is the trader inside you telling you or attemting you to not do it: Does he want a pure directional trade or pure non directional trade?

Wanting a shark type attitude. But then let's stick to system. It hasn't broken channel yet. Either will break or remain rangebound.

 

[Somatung]

Wanting a shark type attitude. But then let's stick to system. It hasn't broken channel yet. Either will break or remain rangebound.

What would be the absolute benefit of the shark type attitude trader in your self against the absolute sytem follow trader in your self? Here you define your: Trading in the zone level.

 

[rajputz]

IBULHSGFIN made me proud today. Waiting for same action on Ashokley.

I was thinking that might be on bigger horizon, catching a weekly sell signal will be a good point to exit. Like daily is too early to leave on a breakout pattern.

 

[rajputz]

For February Month Call, Betting on IDFC at 11 for call of 165. Lets c... Will be giving a profit above 176.

 

[rajputz]

One particular pattern that I have felt on all the breakouts is that whenever a breakout occurs, its backed up by a great volume. For example quoting ibulhsgfin ashokley and idfc here. Which shows that many people or fund houses are buying it with a big bar. Next day, the volume dries up and the bar is small with very little negative activity. May be for few days of consolidation. And then breakout shoots in intended direction. IDFC has formed that particular pattern for me and now I am keeping a close watch on it to monitor this hypothesis. Basic mentality. People try to sell the previous day rally but since volume is buy side, the momentum builds up after few days.