iCharts Discussions

[vikas9760]

Dear Friends,
I am Vikas..Hansaji's friend...he is out of station 2day...& he has asked me to advise all the blog followers to square of their Nifty Hedging Position if one is near to 190-200 pts..Thanks to steep fall in NIFTY...next stgy will be put on blog soon..

[vikas9760]

Dear Friends,
I am Vikas..Hansraji's friend...he is out of station 2day...& he has asked me to advise all the blog followers to square of their Nifty Hedging Position which was initiated on 5 Jan,2010, if one is near to 190-200 pts..Thanks to steep fall in NIFTY...next stgy will be put on blog soon..

[hansraj456]

Hi All.... Sorry I was out of town today and did not track the market. That's why I request my friend Mr. Vikas to post a message on my behalf to exit from hedging position. I have also exited from the hedging position by trading telephonically, because my broker keeps tracks of points. That's why I prefer offline account.

Let us now come to the point :

Final Profit calculation of hedging position at the time of exit today:

Premium of 5199 Call = 346
Premium of 5100 Put = 137
Total Premium = 483
Nifty Future Points gained = 5250 - 5077 = 173
Lost 10 points in today's whipsaw (for going long at 5200)
So Net Nifty Future Points gained = 163
Points gain at the time of selling both options = 523

Net gain in points 523 - 483 + 163 = 203 Points

Hope most of the members must have exited from the position. However, if few members yet to book profit in the present hedging position, may do so tomorrow morning.

Due to my pre-occupation, I could not make fresh position. I will take position tomorrow and also give you call for the same at this forum during trading hours.

If anyone has taken fresh positon today, may continue to hold that, others may enter as per my call.

As per our plan target of 200 points was estimated around 21-25 December 2010 and luckily we got that today itself. Otherwise I had prepared another plan to book 50 points from future on every fall or rise to cover the shortfall because till yesterday our profit was 116 points. So as of now we have already got our target, will take fresh position tomorrow and how to cover few points inbetween, that I will let u know after thorough study during the next weekend and will let u know what to do if nifty again stucks in 50-60 points for weeks altogether. Next call for hedging will probably be last call from my side and I will keep track of that and will keep inform you over here. Thereafter, all the members will make their own strategies because now if anyone reads this entire thread, can easily understand how it works.

Thanks for your kind support.

[DNpintu]

Hi Hansraj Sir, All the forum members with me are so lucky because we got a kindhearted expert like you who willingly educate us. All of your strategies are thunderbolts.I have read your entire thread and have been watching the results of that trades HEDGING & SWING.It's amazing very very very much. G R E A T J O B SIR. Could you please help me how I creat or calculate the 12EMA on Nifty future closing price ! THANKS & REGARDS DNpintu

[hansraj456]

[hansraj456]

Hi All

I wish to discuss few points with regard to our experience on hedging strategy first position of January. As most of the people have already exited from the strategy at the time of gaining 200 points. Few are yet to exit and they may exit during the first 1/2 hour today. So before going for next position, let's discuss few points.
(i) This is for the first time I have experienced somany whipsaws in nifty future levels around 5250 and 5300 levels. People got scared while hedging the position. Only few people could manage to do it in a disciplined way.
(ii) There were somany reasons for getting less than 200 points (excluding brokerage). Some of them are - Few people did not have enough capital to cover lost points by doing hedging with 2 lots. No problem because even then also they have got more than 100 points from this position.
(iii) Some people kept on watching the levels very regularly and got caught on wrong foot. My humble request to all is don't get panicked and never pre-empt the situation. Just do it with a cool mind.
(iv) As per rule if we reach near the hedging level around 3.00-3.30 pm, we don't take a position. I wish to strech the time a little more so the revised time now will be 2.50pm - 3.30pm. Just increase of 10 minutes. I have stretched the time because few brokerage allow the margin position for intraday upto 2.55pm only particularly for people doing basket trading.
(v) Rule for morning hedging due to gapup/down opening will remain same.
(vi) Yesterday I tried to change some rules to cover more points by hedging. Actually that was a beginning, for the time being please avoid that. I will come up with full-fledge strategy for the same during the next week-end or we can wait till first position of Feb. So for the time being we will stick to the present rules.

I request all the members who had taken previous position, please post their experiences and mistakes they had committed so that all the people should get to know what to do or what not to.


Thanks

[hansraj456]

Hi All

I will give call for next hedging position, today as per the situation of nifty levels. Please keep on visiting this thread today.

[hansraj456]

[hansraj456]

Hi All

Yesterday the markets have gone down due to panic selling and fresh shorts. I have been giving calls for stocks as also two future and option plans i.e. hedging strategy and swing trading in nifty future. For the last few days swing and hedging were facing whipsaws but stocks were doing very well. But yesterday, stocks fared losses and other two plans gave exhorbitent profits.

Few days back I started a new thread for portfolio management, I will be giving my suggestions how to club two or more plans in such a way that in either side of the market, we should overall get profits only. I will need your valuable suggestion on this plan.

Thanks

[hansraj456]

Sell Nifty 4800 Call (Feb) at 250-60 and hold. Go Long if Nifty Fut trades above 5000 and hold till Nifty Fut comes back below 5000


Sell Nifty 5100 Put (Feb) at 215-225 & hold. Go Short if Nifty Fut trades below 4950 and hold till Nifty Fut comes back above 4950

There may be variation in option prices but try to get around 460-480 points from both the options

[bgsalvi]

Hansrajji :

Thanks for your excellent strategy. I am also trading in fo segment for some time but max gain of 80-100 points or plain vanila strategy with lots of risk.
While going through your calculation it was noticed that the brokerage is very low even when there are three transactions? Are u availing any specific plans for brokarage charges, if U wont mind can you give more details.
Once again thanks for your excellent strategy.

[joshiga]

Hi Hans,

This seems to be nice strtegy.
But its difficult to find all the rules you have posted as reply to different user queries.
Could you please compile all your strategy rules, including things like how to handle gaps, in a single post. So, that new people can follow it easily.

thanks,
Girish

[nilu_dpak]

[kdd81]

hello
for d new strategy f dis month , today i lost almost 25 pts in d whipsaws ...wen nifty was abt to break d level of 4950 ..it went below dat 2 tyms .n i lost 9 pts in dat position ....n den wen it was trying to go above 5000 it made 5-7 attempts to go above dat ...dere i lost 16 pts in total for my ds position ..
my question to u is dat ...weneva nifty comes near to our levels for hedging ..it reverses back many a time ..so how do we take position to minimise d chances f our sl being getting hitted ...pls tell hw do u tackle it

thanks

[psrao]

Congrats Hans for achieveing the TGT, way to go!