iCharts Discussions

[vijayakannan]

hi hans,

if suppose we have to long at 5000 and short at 4950 , and the NF is oscillating on that day like below, what will be your trade. opening at 4990 5000- 5025-4970-5020-4980-5030 whether you would have initiated long in all the three times NF crosses 5000. and also whether you would have closed the long position in the two instances when NF come below 5000. or should we consider a stop loss buffer like 10 points or 15 points. (but that will eat our profits. right?)

rgds
vijay

[cbosein]

Hi Hansraj,

Thanks for revealing your strategy.

I have one clarification regarding when to long Nufty future & Exit or when to Short & Exit levels. Very confusing.

Will you pleae explain entry & exit of Future levels for

1) Up trend condtion (consider to-day if Future opened at 4993 moved up & reveres from 5050 level back to 4990 level & again moved up closed at 5080 level)

2) Down trend conditon (If Future opened at 5010 level moved down to 4970 & reversed to 5005 & closed at 4990)

3) Range Bound condition ( Opened at 4990 moved to 5020 & back to 4980 & closed at 4995, many times during intraday)

Also add my yahoo messenger : xxxxx

Thanks & regards
Bose

[chandrujimrc]

Dear Mr.Hansraj,
Thank you very much for your wonderfull strategy.I would like to know ,have you back tested this method for the period of election rally.jan2008 and oct-nov2009 crash.


Ravi.

[chandrujimrc]

Dear Mr.Hansraj,
Thank you very much for your wonderfull strategy.I would like to know ,have you back tested this method for the period of election rally.jan2008 and oct-nov2009 crash.


Ravi.

[hansraj456]

Hi. My humble request to all. Please don;t sell now 4800 call and 5100 put now as the time has now gone for that strategy and nifty had a good run today. Most probably next position will be made around 1st week of Jan. Please don't take position now, and people who are already in the bus, keep riding till exit call is given. Thanks

[hansraj456]

Hi chandrujimrc

I have started investing in stock market from Jan. 2009. Before that, I even didn;t know what nifty or sensex is. But before entering the market, I got various trainings and updated my knowledge. I could see my colleagues making or losing money in stock market. But I was of the view there can be some way following which constant profits can be made. I started following this strategy from August 2009, hence no such instance has been tested. However, before elections result i.e. on May 16, 2009 I bought 3500 Put and 3800 call as nifty on that day was around 3650 at the premium around Rs.90 each. The combo cost me around 180/- and on 19 May I sold the call of 3800 at the premium of 700/-. More than triple in 5 days. In such instances, if you know some big incident is going to happen (election, budget, war, etc.), this strategy may or may not work and better to exit from this strategy and buy put and call as after the incident, market generally goes to single direction and then good money can be made. Such instances come once in a while and situation always can be covered by changing the position as after such instance, market heads for single direction.

Hi cbosein, vijayakannan

I don't understand nifty levels, resistences and supports and where nifty will head in future. But I know at what level i have sold options. I tell you one thing, when we sell options (before buying it), we have to pay margin and we receive the premium. The motto of hedging through nifty is just to protect the premium we received at the time of exiting from the position. At the time of making the position i.e. selling options, two levels were decided i.e. if nifty goes above 5000 - go long and hold the long position till it remains above 5000. Today it opened above 5000, people could enter at the levels of 5015 and 5050. I entered at 5020 and I immediately indicated at this forum also. and I will hold this position till it remains above 5020. When it comes at 5020 in the coming days, I will exit. The idea is when nifty is going up, value of 4800 call is increasing and as much points it increases, we should get such points by going long above 5000. Generally points gained in nifty future will be more than the points gained by 4800 call. The points erosion in 5100 put will be our net profit. In the present situation, I am long at 5020 and my SL is 5020. Now if it remains above this level, I am getting points in Nifty future and if it comes down to 5020, I will be getting similar points from value erosion of 4800 call and in that case time is also a factor. If nifty comes down from current level, erosion of value of 4800 call will be much faster than the points gained by 5100 put. It;s a game of erosion of time premium and protection of premium received at the time of selling options by making position in nifty future.

I again request you to read my call and replies very carefully time and again and try to understand every word. Once you are able to understand how it;s working, only then enter into this strategy. Better you keep an eye on the nifty future, 4800 call and 5100 put of Jan. You will better understand when we exit from this position. So watch till first week of Jan. or value of either put or call comes below 50.

Thanks

[hansraj456]

My request to all the readers of this forum. Follow this strategy only when you are able to understand it. It requires strict discipline, nothing else. Watch this forum for a month or so, only then you will be able to get to know about it. I will always disclose my position in nifty future when I am going long or short, as I disclosed today morning when i went long at 5020. I got a call from one member of this forum and told he sold the options but was yet to go long, I immediately asked him to go long at 5050, he did that and is now safe. I have target of 200 points from the current position, even then if nifty remains above 5050 level, he will be getting around 170 points. Under such circumstances, your profit may get a bit squeezed but chances of loss are very minimal.

[krissundar]

Hi! Hansraj Ji!

Very interesting strategy oted by u and I would be more greatful to you if u can pl clarify me how and whn to book profit in your suggeted hedging pairs and explain me with your detailed mail to my mail id xxxxxxx

Regards
Sundar

[chandrujimrc]

Dear Hansraj,
Thank you very much for your immediate reply.

Ravi.

[hansraj456]

Hi Krissundar

Please read my all the posts. I have already explained in detail all the situations including when to exit. Let me explain again - We will exit if either premium of put or call comes substantially below 50. Let's assume nifty goes up further from current level of 5160. Now premium of 5100 put is 115 if nifty gains about 100 points from here, premium of 5100 put will probably come below 50. If it happens before first week of jan, I will exit as in such case, there won't much juice left in put for erosion. If such thing does not happen, I will wait till first week of Jan. (around 7-8 Jan), will take situation for next position and will exit from current position. I hope it should by then give 200 points. Let's calculate what we gained today, 4800 call is at 406 and 5100 put is at 115, total of both is 521. We got 487 points while selling means loss of 34 points. But we are hedging with nifty future at 5020 and it's now at 5160 gain of 140 points. Net points from the strategy gained = 140 - 34 points i.e. todays profit is 106 points and yet somany days left till 7 January. By then time will erode the value of premium as also if nifty goes above current level, value of put will be less than 50 but call will gain only as much points or less points as compared to points gained in nifty future. In such situation, 65 or more points are assured to be added to our current profit of 106, and how much value time eats out, that's yet to be seen. so wait till Jan first week for exit. I generally make two position in a month one in 1st week and other 3rd week of month. Target is 200 points from each position.

Forum administrator donot allow email ids or contact numbers at this forum, let's discuss here only. Please abide by the forum rules.

Thanks

[SNG]

Hi, hansaraj456,
In normal trading your strategy is good. But if there is 20% up or down and what will happen to the unhedged option. If tomarrow open 20% down how will u manage it. xxxxxxxx

[chandrujimrc]

Dear Hansraj,
Thank you very much for your immediate reply.

Ravi.

[krissundar]

Hi! Hansraj Ji!

Thanks for your explanatory replymail.

Regards
Sundar

[hansraj456]

Hi SNG

I have already given a brief answer to such situation. I have never experienced that. Such situations occur once in a while. Generally, we get to know that something big is likely to happen (like election result this year). In other circumstances it does not goes up or down in seconds. That happens rarely. By fearing that everyday or on regular basis such situations comes, people or big funds etc. will never trade here.

Do you know, markets are running only because most of the people here are looser (more than 90%) and only few people are gainers. If one fears that market will freeze 20% up or down on the opening, such people are not fit for stock market. My target per month is 400 points, if on an average such situation comes once in a year, even then I will be in benefit, because under such situation, after taking remedial measures, I will not loose 500 points. During the last 10 years, how many times such situation has come, can anyone tell me, please?

One should always never be fearful or greedy in this market. It's time, patience, discipline which pays here. I have example of one of member that he should go long at 5050. I suggested him to go long with double no. of lots as he needs to cover the gap of 5000 and 5050. He did not do that and got long with single lot. But when he realised that he should have done it at level of 5050, he felt sorry to himself and to me, because he did not do it due to fear. In the situation of fear and greed, people generally make mistakes, they enter late in the trade and exit early, whereas other few people make much more money than the common investors/traders.

[nareshusv]

dear hans,

your strategy seems to be good but how do u get these resistance and support level for buying/selling nifty futures.
just i would like to know is it pivot point r any other levels.
kindly reply.
u can send details to my email id xxxxxxx
regards,
naresh