70% success rate Index Options strategy

[Trading Education Buyer]

I have no idea what you mean by crossover-can you just use simple numbers? Show a real example please

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# Enter when there is a crossover of the rally between 10 to 60 minutes.
For example if the rally touches 8515 and crossover the same after 10 minutes and before 60 minutes

I think he means , when price touches above 8515 first time ,price retraces , then there is a second break above 8515

 

[rajesheck]

If you are going to trade for one month , why not buy at support ?

Broadly speaking there are two approaches to trading.
1. Prediction based
2. Momentum based

I strongly believe prediction based trading is gambling. Momentum based trading is controllable and profitable.

This strategy is momentum (velocity) based....distanc (0.18% or more) and time (within 20 minutes).

In momentum trading everything has to be precise. At the price monthly option script syncs with the futures well.

 

[rajesheck]

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?

As i said before my personal preference is strictly stick to momentum strategy. Intraday trading gives me more control than positional.

The exit strategy can be anything of your own style and preference. It can be either scalping or trend trading or range bound or a hybrid version.

This strategy can be used for positional trading as an entry strategy.

 

[Trading Education Buyer]

when do you exit ?What is profit target?Do you let options expire at end of the month?

When the sun is shining , you can make a lot . so if market trend breaks out , you can have a really good .

 

[rajesheck]

when do you exit ?What is profit target?Do you let options expire at end of the month?

When the sun is shining , you can make a lot . so if market trend breaks out , you can have a really good .

I leave the exit strategy to trader's own style and preference. It can be either scalping or trend trading or range bound or a hybrid version. This strategy can also be adopted into positional trading as an entry strategy.

 

[lawrence-lugar]

I leave the exit strategy to trader's own style and preference
It can be either scalping or trend trading or range bound or a hybrid version
This strategy can also be adopted into positional trading as an entry strategy

Ahh...the Hybrid...that's the money shot,

 

[rajesheck]

Trading is an Art which needs creativity to pursue.

 

[rajesheck]

Algo-Trading VS Momentum Trading

The advantage of Algo-Trading is that it purely depends on the chart pattern and nothing else.

Disadvantage is that Algo scripts cannot be configured to minimise the hit rate of stop loss just before it hits the target. In effect the success rate dips.

On the other hand momentum trading is purely based on chart pattern (like Algos) and at the same time the Rally>>Wait>>Enter approach controls the hit rate of stop loss. Eventually the success rate is maintained at optimal level.

 

[rajesheck]

As said above this strategy 100% depends on the chart pattern and nothing outside. But the problem is it has three subsequent events:

1. A rally with a
a. specific price action and
b. within a specified timeframe

2. Wait for a specific period.

3. Entry based on first event's price action.

I am not sure if there is any Algo platform out there that allows us to write script on inter dependent events like this strategy.

 

[Trading Education Buyer]

Dear Guru

are you under-trading ?