Strategy
Rcom: Short sell Strategy with cautionRcom
CMP 24.65
The stock is at 50 day EMA
One may consider selling
RCom July contract
Option Type: Call Option
Lot size: 14000
Strike Price: 25
Price: 1
Margin requirement Rs 80000/- approximately
Max profit potential of Rs 14000/- per lot
or max 17.5% yield potential on margin requirement
In built loss protection for rise in stock up to 26 level on expiry day
Do review your trading plan &
plan your trade accordingly...
Take care & safe trading...!!!
Nifty: A Simple Strategy Yielding Lacs.I am surprised to see how this simple strategy could yield such handsome return in the Index futures.
Time Period= 1 June till date
Chart= 15 min.
Rules:
1. Divergence on Stochastics associated with inverse price movement
2. Entry @ break above/below immediately preceding "minor" swing high/low
3. Stop @ below/above immediately preceding "significant" swing low/high
4. Target @ immediately preceding "significant" swing high/low point
5. Would not trigger entry on gap openings, wait for price to pull back to entry or else trade will be missed
6. After entry, if target missed by few points then close position on break of a succeeding minor swing or consolidation pattern, whichever hits earlier
7. Minimum Risk to Reward Ratio should be 1:1 or else trade will be missed.
8. No support or resistance from higher time frame taken into account
9. All the entries taken with Stop loss and Limit orders.
10. Carry forward as long as target or stop is not hit.
Trades:
Trade1=33 pts.
Trade2=16*
Trade3=31
Trade4=34
Trade5=32
Trade6=13*
Trade7=47
Trade8=37
Total= 243
Profit on single lot= 243*75=18225
For earning 1 Lac or more one should have traded at least 6 lots.
* In Trade 2 and 6 target was missed by a few points so as per rules the position is closed at the break of succeeding consolidations pattern.
#Trade missed @ Divergence 3 because of poor RRR
Although this strategy yielded 100% success with no Stops hit yet it should be noted that we totally missed the shorting opportunity from 9700 to 9565 on 22nd June. The strategy might be successful in sideways to moderately bearish/bullish environment. Will it be good in a trending market is still a question mark for me, perhaps we will get the answer in coming days.
Kindly cooperate if am wrong in my calculations somewhere but i suppose the purpose of this post is clear to everybody.
Trade safe, stay healthy.
Best Regards
Afraidtotrade
My Intraday StrategyI have a very simple Intraday strategy which works really good. I would like to know your comments, advice or any faults you think my system might have, do paper trade this before actual trading.
After market hours I scan stocks in the 15 min time frame to find out which stocks have broken above or below a range of say 20 bars behind. Meaning from last 300 mins range of the stock and a break above or below that at day end.
After seeing the breakout I generally see the volume with which the stock has broken the range either above or below and the closing price at end of the day. If the volume is above average till the end that gives me an idea that the probability of the stock moving in the direction of the breakout or breakdown is more at the next day opening.
RSI or the relative strength index plays a crucial role too. In case of a breakout the RSI should be nearing 70 and ready to cross it from below ie sloping upwards. In case of a breakdown RSi should be sloping downwards and ready to go below 40-38-35 levels from above.
When these three factors come into play, I decide the price at which i will keep a buying stop order in case of a breakout and selling stop order incase of a breakdown and place the order after premarket close ie at 9.07am. I immediately place my stops as soon the market takes my orders.
I will wait for 45mins to an hour to see if my trade entered is moving or then i exit at CMP.
Youll can see from the ideas that i have published that mostly i do get good quick trades. except todays HDFC bANK which isnt going anywhere.
Please let me know your feedback!
Thanks
[Short term] Dewan Housing.Where it well end?Dewan housing is heading to crucial inflection point for short term.
Sell Strategy
If 435 Broken, sell it for target of 427 which is the next immediate support level.
If 427 Broken, book half and keep half for 420
Stop loss is 441
Buy Strategy
If 441 Crossed, Buy for T1 of 445 and final target of 450
Stoploss is 435
IDEA - Strangle Option StrategyCMP - 100
This is a direction-neutral strategy. I used it previously too. ( see in related idea )
Here I am buying,
95 PE - 3.5
105 CE - 3.5
Why ? Because it has moved a lot and I am expecting it to move further.
Caution : Experts do due diligence. New traders can look into this and paper-trade.






