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Friday - Monday Strategy |
rk_a2003
Black Belt
Joined: 21 Jan 2010
Posts: 2734
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Post: #31  Posted: Mon Jul 25, 2011 7:31 pm Post subject: |
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| ANS_KOL wrote: | HEY RK, it seems the strategy starts working.but i was thinking something else.what if instead of booking profit right at the opening, we keep our stoploss order at the low of first 15 mins and watch. if it is triggered we won"t lose much of our profit, but if the rally continues, we may get another 60-70 points more.
think over it.
ANS. |
Yes ,I was also thinking in the same line ,Stop loss can be opening price also and then can be traliling after wards. Any ways let us see tomorrow. |
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Rahulsharmaat
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Joined: 04 Nov 2009
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| Post: #32 Posted: Mon Jul 25, 2011 7:39 pm Post subject: |
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| why 5575-- and 5727-- tell me a bit |
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rk_a2003
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Joined: 21 Jan 2010
Posts: 2734
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| Post: #33 Posted: Mon Jul 25, 2011 7:59 pm Post subject: |
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| Rahulsharmaat wrote: | | why 5575-- and 5727-- tell me a bit |
Sorry, it is 5675 ( typo ) and 5725 . The reason;as you sold call and put at 5700 it is ok not to have any hedging in the range of 5675 - 5725.
Say theoretically nifty closes at 5700 at next month also, you can pocket all the time premium . But practically it will not happen nifty may very well close above or below 5700 . say, if it is at 5500 put premium will be around 400 ofcourse call will compensate it but your profit will not be much. Therefore as per this strategy your short position at 5675 will yield you 175 points.
You are hedging with the Nifty for a whole purpose of keeping Nifty at 5700 through hedging . which is not required in the range of 5675-5725.The Premium erosion of put and call it self is enough for you in this 5675-5725 range.
Hope Iam able to express it in an understandable way.
RK |
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Rahulsharmaat
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Joined: 04 Nov 2009
Posts: 2766
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| Post: #34 Posted: Mon Jul 25, 2011 8:04 pm Post subject: |
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ok I have shorted 5400 call and 5900 put today when nifty was 5670--- at 555 in total
As well 5500 call and 5800 put totaling 410 Rs same are--
so as per your theory-- i should go long above 5710-- or short below 5630---
and hold-- if i see 5670--will exit in long as well short case--- |
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rk_a2003
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Joined: 21 Jan 2010
Posts: 2734
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| Post: #35 Posted: Mon Jul 25, 2011 8:13 pm Post subject: |
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| Rahulsharmaat wrote: | ok I have shorted 5400 call and 5900 put today when nifty was 5670--- at 555 in total
As well 5500 call and 5800 put totaling 410 Rs same are--
so as per your theory-- i should go long above 5710-- or short below 5630---
and hold-- if i see 5670--will exit in long as well short case--- |
I prefer 5500 call ( instead 5400 ) the difference between call and put should be 400 points. as you did this when nifty was at 5670 you should go long with nifty 25 points above 5670 ( you can keep this figure as 5700 instead of 5695 , no much difference ). You should go shrt with nifty 25 points below 5670 i.e 5645 .
Last edited by rk_a2003 on Mon Jul 25, 2011 8:21 pm; edited 1 time in total |
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rk_a2003
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Joined: 21 Jan 2010
Posts: 2734
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| Post: #36 Posted: Mon Jul 25, 2011 8:16 pm Post subject: |
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| Rahulsharmaat wrote: | ok I have shorted 5400 call and 5900 put today when nifty was 5670--- at 555 in total
As well 5500 call and 5800 put totaling 410 Rs same are--
so as per your theory-- i should go long above 5710-- or short below 5630---
and hold-- if i see 5670--will exit in long as well short case--- |
Yes ,you are almost right , but you will be eithe long or short , long above 5700 if it come back and going below 5700 cover the long , if it goes below 5645 go short , if it is coming again above 5645 cover short. No long or short between 5645- 5700. |
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rk_a2003
Black Belt
Joined: 21 Jan 2010
Posts: 2734
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| Post: #37 Posted: Mon Jul 25, 2011 8:31 pm Post subject: |
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Rahul ,
To back test this strategy intraday charts through out testing period is required, will they be available. |
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Rahulsharmaat
Black Belt
Joined: 04 Nov 2009
Posts: 2766
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| Post: #38 Posted: Mon Jul 25, 2011 8:37 pm Post subject: |
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| till date i gave shorted call and put 200 far from nifty-- n covered in 1week with gain 30 points max-- n repeted it when ever i got chance |
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rk_a2003
Black Belt
Joined: 21 Jan 2010
Posts: 2734
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| Post: #39 Posted: Tue Jul 26, 2011 9:42 am Post subject: |
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UPDATE
Booked profit at 5705  PROFIT: 72 Points
Waiting for next Friday - Monday  |
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ANS_KOL
White Belt
Joined: 16 Jul 2011
Posts: 84
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| Post: #40 Posted: Wed Jul 27, 2011 9:41 pm Post subject: |
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dear rk, this is regarding the hedge strategy by hansraj sent by you. i got the total strategy. interested indeed. only thing is how to take position on nifty future + or - 25 points from the ce and pe entry? how to handle the whipsaws at that time? nf can hit stoploss so many times if price moves on and around that level for quite some time?
i will be grateful if you kindly address my doubt.
thanks and regards.
ANS. |
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rk_a2003
Black Belt
Joined: 21 Jan 2010
Posts: 2734
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| Post: #41 Posted: Wed Jul 27, 2011 9:51 pm Post subject: |
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| Rahulsharmaat wrote: | I have back tested this from Jan 2010-- till now--
Total 82 week almost-- and but trades are almost 50---
Stop loss hit in 11 trades--thats 550 points
Target 65-70 point hit in 37 trades that 2000-- points-- so gain 1400 points--
which is 85 point every month--without too much pain , time and stress |
The sucess rate over 18 months is 78% . pretty good rate. As Rahul said less pain , time and stress in this method.
Last edited by rk_a2003 on Thu Jul 28, 2011 7:52 am; edited 1 time in total |
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rk_a2003
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Joined: 21 Jan 2010
Posts: 2734
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| Post: #42 Posted: Thu Jul 28, 2011 6:25 am Post subject: |
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| ANS_KOL wrote: | dear rk, this is regarding the hedge strategy by hansraj sent by you. i got the total strategy. interested indeed. only thing is how to take position on nifty future + or - 25 points from the ce and pe entry? how to handle the whipsaws at that time? nf can hit stoploss so many times if price moves on and around that level for quite some time?
i will be grateful if you kindly address my doubt.
thanks and regards.
ANS. |
ANS,
The trickish part of this strategy is handling efficiently the whipsaws and able to be in the position along with the nifty movement . There are no set guide lines.
Some people say it works well with offline accounts. In this way you can instruct your broker to short below say 5550 and to go long above5600.The operators are experienced enough to execute your order with minimum whip saws by filtering noise.
But, I did all my trades online only, and as you said managing whip saws is a little painfull. One trick is not to bother about whip saws and doing it as mechanically as possible utmost you may loose 10 or 20 points, one of my friend took two positions of nifty and covered one position after 15-20 points profit so as to handle whipsaws without much botheration. But, for some one who follows Nifty on a day to day basis it should not be an up hill task to filter noise or simply do it mechanically with out trying to filter the noise.
RK |
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Rahulsharmaat
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Joined: 04 Nov 2009
Posts: 2766
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| Post: #43 Posted: Thu Jul 28, 2011 9:04 am Post subject: |
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As of now statergy of hansraj looks good--
Shorted 5400 call-- 5900 put -- together at 555-- when nifty was 5670-- n shorted future at 5645--
gain till yesterday was 130 points |
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rk_a2003
Black Belt
Joined: 21 Jan 2010
Posts: 2734
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| Post: #44 Posted: Thu Jul 28, 2011 9:11 am Post subject: |
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| Rahulsharmaat wrote: | As of now statergy of hansraj looks good--
Shorted 5400 call-- 5900 put -- together at 555-- when nifty was 5670-- n shorted future at 5645--
gain till yesterday was 130 points |
Rahul,
Your spread is 500 pts between put and call and you got only 555 premium for them means u got time value of 55 ??. spread should be 400 or 300 and time value ideally should be above 150 ,higher the time value higher the points on time erosion.
I sincierly advise you to close u r position if it was a real trade and book profit in Nifty, even though you may loose a little in put and call. the reason for this advise is u got very little time premium in put and call.
Regards,
RK |
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bgsalvi
White Belt
Joined: 19 Mar 2009
Posts: 15
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| Post: #45 Posted: Thu Jul 28, 2011 1:00 pm Post subject: |
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| Rahulsharmaat wrote: | As of now statergy of hansraj looks good--
Shorted 5400 call-- 5900 put -- together at 555-- when nifty was 5670-- n shorted future at 5645--
gain till yesterday was 130 points |
Rahulji
The strategy you are following shall have time value of atleast 120-140 points. Mr. Hansraj was targetting for 200 points. But this strategy can give you negative points if there are whipsaws arround your middle level. The stop loss shall be very tight. With low time value the gains could be negative in side way market.
B. G. Salvi |
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