iCharts Discussions

[ANS_KOL]

dear all,
Today it was a big gap up above our range, so no trade taken today.
nf closing-5385.5
daily volatility-1.65%
range for monday-88.86
therefore,
buy @5296.65( 5295-5300)sl-5246
sell @ 5474.35(5470-5475) sl-5525.
ANS.

[vinay28]

Tanhadil, Ajay sir and pk sir will be looking forward to see my levels on monday? They never said so? I am neither a TA nor a magician. But, still, since you have mentioned it, let me make a guess. I feel we may not cross 5460 presently and then we may react to at least 5300, the lower level not necessarily on monday.

Now for the snapshot of option calculator. I have assumed some values for the sample calculation e.g. 5500 call price of 57 at 5385 and target of 5460. I have have attached sample calculation for IV and option price based on these values. As explained in the thread realier, 5500 is the exercise (strike)price, 17 is the number of days to expiry on 31st Oct and 15% are values of interest rate and dividend yield.

Enter 5385 in underlying price, 57 in market price on the IV calculator (in actual case, you have to enter these prices as observed on the trading terminal at any time at which you want to calculate) and select "call" at the top. Then click calculate. You get a IV value of 22.42 %.

Enter the calculated IV value in volatility and target of 5460 in underlying price on option price calculator page and click calculate and you get an option price of 83.37 under call option column. If you are sure you want to sell at nf of 5460, you should place sell order at say 82. You can use it even when you want to buy an option at some price (e.g. lower than present value on terminal) in your mind.

You can also calculate similarly for put option but for that you have to select "put" at the top of IV calculator page.

Hope this explains fully.

[tanhadil1984]

[ridinghood]

HI VINAY
thnx a lot. u have made great contribution to this thread.
there is one query though!
in the option price calculator there is one item called rounding where by default value 3 is put .pl throw some more light on to it as what is this?
regs
ridinghood

[pkholla]

Hi everybody,
I decided to wait a bit before posting next time. Friday really shook us all up. I think I will not place sell/buy beforehand if pre- opening is up/down 100 or more points on previous close! Please note this is NOT a criticism of anybody, just a comment based on excessive volatility seen ever since FIIs joined the party!!! For example: if any one noticed, Dr Reddy high on Friday exceeded previous close+3*volatility (as calculated by ans method!). Going by NSE data Dr Reddy should actually have a low volatility of just 1.3%. Let us see a week's actual trading and I will post on next Saturday, my day to day predictions+actuals for NF+a few selected shares, for your feedback. Regards, Prakash Holla

[GHAISAS]

ANS_KOL, Thanks, Ghaisas.

[vinay28]

You are right ghaisas. This thread did indeed go away from the topic although stategy is still same. But I have no intention of hijaking the thread.

Ridinghood - as explained in one of my earlier posts, rounding is for calculated value of option in rounded-off decimals. 3 is by default but it could as well be 1 since I don't think anyone is interested in getting such an accurate value

[ridinghood]

HI VINAY
thnx brother
regs
ridinghood

[ANS_KOL]

In this thread one of our friends JSG requested me to post the positional nifty future trading strategy that I am following, so I am posting this under this thread just for the convenience of monitoring both the strategies.
This was once stated by a person named Hansraj in this forum, but before he completes this strategy, due to some reason he was banned from this forum. I started taking interest in it and modify it according to my convenience, obviously my friend RK first initiated me to look after and modify this strategy. So, here it is. Kindly give your feedback and ask queries regarding it. Everybody s suggestion is wanted to make it a more efficient one.
Thanks.
ANS.

STRATEGY-
Take a note of 12 ema of current month nifty future and wait for the price to come close to that 12 ema mark.
If price approximate 12 ema from below, then in intraday place a buy order @12 ema with a reverse sell order 50 points below 12 ema .
Remember, this sell order is valid for that day only. From the next day order the sell order will be 12 ema of nifty future. If market trends and makes a consistant upwards move, then nothing more to do, just wait and change your reverse sell order everyday as the 12 ema, at that point is expected to make an upwards curve.
This is an ‘always in the trade’ method. You may be long or short, but never out of the trade.
Now, on some day, the market will complete it s uptrend and starts showing correction and as a result the nifty price will fall to the 12 ema mark, you do not have to wait for eod confirmation, in intraday whenever the price falls below 12 ema (of the previous day), a square off of the previously bought nifty future and opening of fresh short of another lot of nifty future takes place. and as you have done in case of long entry, this time also your stop loss will be 50 points higher than your short entry, and as expected, this stop loss and long entry level is only for the short entry day and from the next day onwards the stop loss is shifted to 12 ema level, breaking of which will give rise to another fresh long position and squaring off of the short position. Thus the process goes on…..

Those are the expected scenario, but in case the nifty moves against our line of expectation, in that case-

-say, you are long on the previous day-
If @ 9.25 am (10 mins after opening) NF is trading above open, but below the 12 ema mark which is supposed to tbe the stop loss for today, then
1. Do not take an action as it seems we are in an uptrend for intraday, but place short order at the opening price with + 50 points stop loss.
2. Wait for the price to move up and stabilize above 12 ema and then place short order at the 12 ema mark.

If @ 9.25 am the NF is trading above 1 ema, then the opening price is of no importance. Place reverse short order at 12 ema and if it gets triggered, place stop loss or reverse long order +50m points above the entry and carry the short position.

If @ 9.25 am of the next day, the nf is trading more than 10 points below 1 ema and below the open price too, then immediately reverse the long position create a short position at whatever the price @ 9.25 am and a reverse stop for long 50 points above entry and thus the process goes on………

[maooliservice]

Dear sir,

which time frame to be used for this


Thanks & Regards

Mohan

[ANS_KOL]

[ANS_KOL]

Neither buy nor sell order got triggered today.
for tomorrow(1/11/11)
nifty close-5347.10
daily volatility-1.61%
range-86.10
therefore,
sell @ 5433.20 (5430-5435) stoploss @ 5484.
buy @ 5261.00 (5260-5265) stoploss @ 5211.
regards.
ANS.

[sandew]

Ans,

Refining Hansraj 12 ema SAR system, as a rule consider SL flip not at absolute 50 points but "half of ATR".

(just coincidentally ATR is also around 100 )

Your views?

[rk_a2003]

Sandew

Are you following it.In case the answer is yes.Could you please provide statistics.

Thanks

RK

[sandew]

I dont follow SAR system at all.

The logic is, you cant have 50 point sl when nifty is at 2500 or say at 7500.