100 trading strategies

[ajeetsingh]

And, If you wanna do Opposite

.

 

[anilnegi]

ok here is the changes

i am mildly bullish on LIC housing

as per collar trade
1. Long future @ 402
2. buy at the money put 400 @ 5.8
3. sell OTM call 410 @ 5.50

so now the risk is profitable above 402.3 (402+5.8-5.50) i.e. risk is 0.3
gain is 410-402.3 = 7.7

it seems excellent risk reward ratio valuri bhai pls look again

moreover, what about downside risk, how that can be saved

thanks

Ok, todays update
1. Long future @ 402 todays price 461
2. Bought at the money put 400 @ 5.8, todays price - 0.05
3. Sell OTM call 410 @ 5.50 todays price - 51.

here is the update till today, now can someone guide how to do positioning in this trade, how much lot to buy, when to exit. valuri bhai pls explain in free time.

thanks

anil negi

 

[SaravananKS]

Ok, todays update
1. Long future @ 402 todays price 461
2. Bought at the money put 400 @ 5.8, todays price - 0.05
3. Sell OTM call 410 @ 5.50 todays price - 51.

here is the update till today, now can someone guide how to do positioning in this trade, how much lot to buy, when to exit. valuri bhai pls explain in free time.

thanks

anil negi

As I Under stood one has hold it till expiry date..
if it expiry @ 460 then one need to go long on next July contract
and Buy 460 PE and sell 470 CE

 

[jagankris]

Ok, todays update
1. Long future @ 402 todays price 461
2. Bought at the money put 400 @ 5.8, todays price - 0.05
3. Sell OTM call 410 @ 5.50 todays price - 51.

here is the update till today, now can someone guide how to do positioning in this trade, how much lot to buy, when to exit. valuri bhai pls explain in free time.

thanks

anil negi

As I Under stood one has hold it till expiry date..
if it expiry @ 460 then one need to go long on next July contract
and Buy 460 PE and sell 470 CE

Please try to understand the max profit potential of the strategy.
Entry - 402 Short 410CE @ 5.5 Long 400 [email protected].

The moment the full profit potential is reached.Close the position and enter new position at the appropriate prevailing strikes.
The Max profit potential in this case is 7.7/exit in this case is 415.5 Rs.

At 415.5 one should have exited the position and entered new.
So keep on rolling the position in the direction of the trend.
That's the way to capture the entire trend.

Hope this helps.

 

[SaravananKS]

Please try to understand the max profit potential of the strategy.
Entry - 402 Short 410CE @ 5.5 Long 400 [email protected].

The moment the full profit potential is reached.Close the position and enter new position at the appropriate prevailing strikes.
The Max profit potential in this case is 7.7/exit in this case is 415.5 Rs.

At 415.5 one should have exited the position and entered new.
So keep on rolling the position in the direction of the trend.
That's the way to capture the entire trend.

Hope this helps.

JK,
How you got 415.5 ?

 

[jagankris]

JK,
How you got 415.5 ?

Saravanan Sir,

Correct.Not 415.5.
Above 410 the profit will be constant at 7.7.

 

[SaravananKS]

Saravanan Sir,

Correct.Not 415.5.
Above 410 the profit will be constant at 7.7.

As per this Strategy Future has delta Value 1 and Put has -0.5 and Sold call has around -0.3 so nett delta per Point is 0.2

So above profit would be constant 7.7 in money terms 7.7*500=3850/-
one would need around 90K Margin to initiate the Strategy

if one has invested that 90K in equity he might has got 225 Shares

as per todays price it is Rs 58/- Profit per share
ie 225*58=13050/

The advantage of this Strategy is down side limited (on that series) while in equity investment down side is not protected

to reduce this risk even if one invested Rs 20000/- rest amount Rs 70000/-invested in Liquid funds to earn fixed income
the return may be around 2900/-+interest in liquid fund

Again check the calculation Future Bought @ 402.3
call sold at 5.5
Put but @ 5.8

Maximum profit @ 410 and above

So 410-402.3-5.8+5.5=7.4 Points So maximum Profit is 7.4*500=3700

While Risk is 2.3+0.3=2.6 Points
ie 2.6*500=1300/-

As Per this Strategy maximum risk is 1300/-

this rs 1300/- is nearly equal to 6.5% of Rs 20000/-

This 6.5% Stop loss would be more then sufficient for swing trading

So my Question is why one should adapt this Strategy to get a similar return
in derivative while the same can be achieved with less than 30% Capital in equity?...

As I told early this Strategy works in mild bullish market
In wild Bullish or Wild bearish market it will under perform Buy & Hold

Pls Refer my eary Post
http://www.traderji.com/advanced-trading-strategies/35730-100-trading-strategies-6.html#post1081900
:thumb:

 

[veluri1967]

As per this Strategy Future has delta Value 1 and Put has -0.5 and Sold call has around -0.3 so nett delta per Point is 0.2

So above profit would be constant 7.7 in money terms 7.7*500=3850/-
one would need around 90K Margin to initiate the Strategy

if one has invested that 90K in equity he might has got 225 Shares

as per todays price it is Rs 58/- Profit per share
ie 225*58=13050/

The advantage of this Strategy is down side limited (on that series) while in equity investment down side is not protected

to reduce this risk even if one invested Rs 20000/- rest amount Rs 70000/-invested in Liquid funds to earn fixed income
the return may be around 2900/-+interest in liquid fund

Again check the calculation Future Bought @ 402.3
call sold at 5.5
Put but @ 5.8

Maximum profit @ 410 and above

So 410-402.3-5.8+5.5=7.4 Points So maximum Profit is 7.4*500=3700

While Risk is 2.3+0.3=2.6 Points
ie 2.6*500=1300/-

As Per this Strategy maximum risk is 1300/-

this rs 1300/- is nearly equal to 6.5% of Rs 20000/-

This 6.5% Stop loss would be more then sufficient for swing trading

So my Question is why one should adapt this Strategy to get a similar return
in derivative while the same can be achieved with less than 30% Capital in equity?...

As I told early this Strategy works in mild bullish market
In wild Bullish or Wild bearish market it will under perform Buy & HoldPls Refer my eary Post
http://www.traderji.com/advanced-trading-strategies/35730-100-trading-strategies-6.html#post1081900
:thumb:

I am referring bold and red above.

This strategy is suggested for Intermediate range traders who are not professional yet.

The aim of this strategy is to protect his capital at first instance and thus allow him room to profit from favourable move. No massive and windfall profits are possible with this strategy.

IMO, whether the move is mild or fast, it will give maximum what it is intended to give. If the move is so fierce, let him consider a fresh Collar.

Collars should form the basic strategy until one gets trained to the tunes of the market. It helps in protecting the capital unlike buy and hold. It helps, once in trade, to learn to control one's fear and greed, the two massive factors for failure in trading.

 

[SaravananKS]

I am referring bold and red above.

This strategy is suggested for Intermediate range traders who are not professional yet.

The aim of this strategy is to protect his capital at first instance and thus allow him room to profit from favourable move. No massive and windfall profits are possible with this strategy.

IMO, whether the move is mild or fast, it will give maximum what it is intended to give. If the move is so fierce, let him consider a fresh Collar.

Collars should form the basic strategy until one gets trained to the tunes of the market. It helps in protecting the capital unlike buy and hold. It helps, once in trade, to learn to control one's fear and greed, the two massive factors for failure in trading.

I got your point.but don't how many intermediat traders follow it bilndly. most common mistake
is holding lossers. In this case chances there that booking profit future and holding call short.
This is reason why i am not suggesting derivatives for novice traders

 

[veluri1967]

I got your point.but don't how many intermediat traders follow it bilndly. most common mistake
is holding lossers. In this case chances there that booking profit future and holding call short.
This is reason why i am not suggesting derivatives for novice traders

With a Collar, your loss/profit is fixed as long as you hold all three legs.

However, I give the sequence how to enter a bullish collar. Infact, all three legs are to be executed together. Since it is not possible to enter all three legs at a time, use this sequence to enter the trade as quickly as possible.

1st Buy futures.
2nd buy put
3rd Short CE.

The sequence of unwinding bullish collar when in profit.

1st cover CE
2nd sell put
3rd sell futures.

The sequence of unwinding bullish collar when in loss.

1st sell futures.
2nd cover CE.
3rd sell put.