Nifty is a main index from National Stock Exchange of India.
70% success rate Index Options strategy
- Thread starter rajesheck
- Start date
Nifty is a main index from National Stock Exchange of India.
I know that
but options market is iliquid
but options market is iliquid
Basically this strategy is momentum based day trading (intraday) strategy and can be used by scalpers, trend traders and range bound traders alike.
End of the day we need to make money. That is more important.
Success rate is meaningless if you do no understand how much $ you lose the other % of the time.
The strategy actually has three simple entry rules:
1# A RALLY of 0.18% or more of Nifty trading points within 20 minutes.
For example if Nifty is trading at 8500 then 0.18% means 15 points.
2# WAIT for 10 minutes
3# ENTER when there is a crossover of the rally before 60 minutes.
For example if the rally touches 8515 by 10:10 am and crossover the same before 11:10 am.
1# A RALLY of 0.18% or more of Nifty trading points within 20 minutes.
For example if Nifty is trading at 8500 then 0.18% means 15 points.
2# WAIT for 10 minutes
3# ENTER when there is a crossover of the rally before 60 minutes.
For example if the rally touches 8515 by 10:10 am and crossover the same before 11:10 am.
I have no idea what you mean by crossover-can you just use simple numbers? Show a real example please
Example....
1. Let price by 9:55 am be 8500
2. By 10:10 am it moves up to 8515 or more ( a rally of 15 points which 0.18% of 8500)
3. Then the price starts dipping to 8510 by 10:15 am and gains a support there
3. Trader waits for 10 minutes from 10:10 am to 10:20 am
4. From 10:25 am the price starts moving up and CROSSOVER 8515 mark by 10:30 am
The above scenario matches all the three RULES of the strategy hence trader can place an order by 10:30 am.
If you are going to trade for one month , why not buy at support ?I prefer monthly.
These types of options strategies can be profitable , because you are buying a call or a put at half the monthly volatility cost .Therefore , there is a chance that by paying 50 % premium/ for volatility , for call trader is likely to make an average 50%.
well done , you are on the right course.
when do you exit ?What is profit target?Do you let options expire at end of the month?
What do you do if you have a losing month?
Have you tried option spreads?
well done , you are on the right course.
when do you exit ?What is profit target?Do you let options expire at end of the month?
What do you do if you have a losing month?
Have you tried option spreads?