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3 , 15 EOD EMA Cross over trades |
Gemini
White Belt
Joined: 28 Apr 2009
Posts: 166
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Post: #421  Posted: Wed Nov 20, 2013 7:20 pm Post subject: |
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Crossover (bearish) by EoD today. ADX is only 15 ! Interesting to watch !
Have bought 6150 put. Let us wait and watch ! |
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sjjhala
White Belt
Joined: 14 Mar 2008
Posts: 119
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| Post: #422 Posted: Fri Nov 22, 2013 10:27 pm Post subject: an observation |
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my observation has been that after taking the trade, the max profits occur within 2 to max 3 days (T+2/3) which is when one should look to get out of position.
a trailing stop loss (last 1 or 2 day(s) low) also works fine.
just my 3 paise  |
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stevenmat
White Belt
Joined: 27 Dec 2011
Posts: 478
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| Post: #423 Posted: Sat Nov 23, 2013 10:41 am Post subject: |
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ok here's what happened with me..
i Dint buy it with the bullish crossover on 19-Nov since i knew that the candle wasnt touching the 3 ema, EOD. So i was waiting for the market to reach 15 EMA to buy calls.. On 20-Nov i had put a buy order for 6250 calls at 24.. for which corresponding NS was close to 15 EMA (I was expecting a bounce).. but the fall was too fast.. and the next day i squared it off at 13.. which was where it opened.. I squared off because there was a bearish crossover then.. But since markets fell too much that day.. i resisted buying puts on the cross over.. But i added some 6000 PE puts on friday (remember how i had some left overs of 6000 PE .. the roulette table ones).. so i averaged the 6000 PE at 37...and booked most of the profits at 55/56 levels.. this was just to counter the losses i ad because of the calls..
Anyways..now i have very few quantity of puts..
lets see how it goes next week !!
cheers guys !! its been a bumpy ride for our strategy !!
@sjjhala : i know it lasts only for a few days.. precisely why i have said book profits in T+1/2 days... This is mainly because our crossovers happen at an intermediate stage .. In the sense that we never actually find a bottom or the top... we move with the market (obviously only for a day or so)
cheers
stevenmat |
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sjjhala
White Belt
Joined: 14 Mar 2008
Posts: 119
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| Post: #424 Posted: Sat Nov 30, 2013 2:43 pm Post subject: updates on the strategy? |
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Hi,
Positive Crossover happened...any suggestions? |
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Gemini
White Belt
Joined: 28 Apr 2009
Posts: 166
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| Post: #425 Posted: Sat Nov 30, 2013 6:39 pm Post subject: |
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Yes, positive crossover has occured. But I see 1. Resistance at ~ 6200 and 2. ADX being ~ 14 (indicating lack of strong trend).
Hence, I propose to go long with small volume for 6300 call, if Nifty-spot manages to remain above 6200 on Monday after 3 pm. |
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sjjhala
White Belt
Joined: 14 Mar 2008
Posts: 119
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| Post: #426 Posted: Mon Dec 02, 2013 5:33 pm Post subject: |
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i have a question regarding Nifty calls and puts as per 3 15 strategy:
why do OTM and ATM always outperform ITM? ideally since ITM have the highest delta, they should be the ones outperforming on a % basis, but my observation has been that OTM and ATM (in this order) outperform ITM.
Why?
Any one has answers?
Sid |
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kishjk7551
White Belt
Joined: 26 Jan 2008
Posts: 293
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| Post: #427 Posted: Fri Dec 13, 2013 10:54 pm Post subject: |
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Steve has the crossover happened today need your update.
Regards |
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stevenmat
White Belt
Joined: 27 Dec 2011
Posts: 478
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| Post: #428 Posted: Sat Dec 14, 2013 9:27 am Post subject: |
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| sjjhala wrote: | i have a question regarding Nifty calls and puts as per 3 15 strategy:
why do OTM and ATM always outperform ITM? ideally since ITM have the highest delta, they should be the ones outperforming on a % basis, but my observation has been that OTM and ATM (in this order) outperform ITM.
Why?
Any one has answers?
Sid |
Sid.. if you check the vix.. then you'll understand why it happens...
If markets are going up:
1. and vix is increasing then OTM options will increase in value more as compared to ITM
2. and vix is decreasing then ITM options will increase in value more as compared to OTM
its vice versa also |
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stevenmat
White Belt
Joined: 27 Dec 2011
Posts: 478
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| Post: #429 Posted: Sat Dec 14, 2013 9:29 am Post subject: |
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| kishjk7551 wrote: | Steve has the crossover happened today need your update.
Regards |
crossvoer hasnt occured as of now as you can see... but i would watch and observe monday as the 3ema is not touching the candle.. so there might be a little stagnation.. or may be a slight green move..lets see !
cheers
stevenmat |
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jyothil
White Belt
Joined: 26 Feb 2009
Posts: 299
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| Post: #430 Posted: Mon Dec 16, 2013 4:28 pm Post subject: |
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Crossover occured? 3 ema is below 15 ema
G.Jyothi |
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nsk1371
White Belt
Joined: 01 Sep 2009
Posts: 226
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| Post: #431 Posted: Tue Dec 17, 2013 3:25 pm Post subject: |
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steve sir and others,
as per charts the cross over has occured as of yesday,, anybody bot puts as per this stratergy...if so what's ur stoploss |
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stevenmat
White Belt
Joined: 27 Dec 2011
Posts: 478
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| Post: #432 Posted: Tue Dec 17, 2013 3:29 pm Post subject: |
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Sorry guys for the late reply... I've bought puts today morning..mostly 6150PE @51 levels... booked some profits at 67 just now... but keeping some..All the best !
cheers
stevenmat |
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sjjhala
White Belt
Joined: 14 Mar 2008
Posts: 119
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| Post: #433 Posted: Tue Dec 17, 2013 10:46 pm Post subject: |
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hi steve,
why 6150 PE? why not 6100 / 6000 strike price PE, considering that the volume in these is much much higher, thereby increasing liquidity and better fills / hardly any slippage? especially since as per your previous reply to my question (on better returns in OTM option strike prices), 6100 / 6000 strike would have given you better returns?
question are purely academic in nature...i am a fan of this strategy and desire to only fine tune it by proper understanding.
thanks in advance for the clarifications.
Sid |
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stevenmat
White Belt
Joined: 27 Dec 2011
Posts: 478
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| Post: #434 Posted: Wed Dec 18, 2013 9:02 am Post subject: |
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| sjjhala wrote: | hi steve,
why 6150 PE? why not 6100 / 6000 strike price PE, considering that the volume in these is much much higher, thereby increasing liquidity and better fills / hardly any slippage? especially since as per your previous reply to my question (on better returns in OTM option strike prices), 6100 / 6000 strike would have given you better returns?
question are purely academic in nature...i am a fan of this strategy and desire to only fine tune it by proper understanding.
thanks in advance for the clarifications.
Sid |
Good question... the main reason i bought 6150 is because its the closest OTM option.. generally speaking the closest option does not fluctuate as much as the others because its the closest.. and specially when i expect only a small move..its better to buy the closest OTM... Hope its clear?
cheers
stevenmat |
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taruj
White Belt
Joined: 20 Apr 2011
Posts: 260
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| Post: #435 Posted: Sun Jan 05, 2014 9:57 am Post subject: |
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Hi guys,
Been a silent follower of this method.
No recent 3/15 trade?? Any updates... ?
Rgds, |
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