A brief study on nifty options for intraday

[bunti_k23]

Interesting I got this piece from ET full article link is attached...


For the benchmark indices like Nifty 50 and Bank Nifty, we have monthly options as well as weekly options that expire every Thursday. While for monthly options, we have futures but for weeklies, we don’t have any future. So, what are the weekly options based on - is it based on the spot or is it based on the monthly future? The answer is none of the two. Instead, they are based on something known as synthetic (or implied) futures. This synthetic future is something that isn’t actually traded but rather reverses calculated from options pricing.


https://economictimes.indiatimes.co...ofinterest&utm_medium=text&utm_campaign=cppst

This is something new bro...Good find.

 

[bunti_k23]

I have stopped beating myself about missed trades. I don't even regret those.

Now i have to learn this

 

[bunti_k23]

DAY - 3 BLUNDER ALERTTTTT!!!!!!!
Blunder happened as i have made some changes in script. I have removed exrem function of amibroker in order to get entry in every swing low or high. when removed this function it gave twice signals. few were false. i know this thing there will be 2-3 false signals and one will be a good swing with momentum.

Now, in theory and on historical charts every thing looks GOOD!!!
on historical chart i can see a nice swing of 50 pts in nifty and assume that i captured all of them

Here comes the practical thing, today i got a same swing of almost 50pts in nifty, believe me or not my patience in that swing. in that same swing i entered 3 times taking small profits, when i see a historical chart i imagine staying in this trade for a complete swing.

Learning for the DAY

1 - Need to correct the changes i made in system.
2 - Entry Rule was broken 2-3 times, Need to follow Entry Rule.
3 - Need to keep patience to capture complete momentum of price, Need to avoid early exit.

GOOD THINGS HAPPENED WHICH SHOULD BE CONTINUED IN FUTURE

1 - I was cutting losses very quick, today s max Loss was 9 pts only in premium.

All in all the day ended with 28 pts profit in premium, See my trading activity below. I have downloaded a excel file from internet to keep my trading journal. some of the parameters unknown, i have highlighted which was IMP for me.

Below are the trades explained.

 

[bunti_k23]

DAY 4 LOSING DAY

Today i traded with exrem function, my laptop got old it took almost 15 + mins to boot. i opened chart when 1 st big down swing already happened. it was about to give atleast 10+ pts in premium. then i tried to enter a break on swing low and took small SL. trades are explained on charts.

When you look at signals on historical charts, they look wonderfull and all in profits, but in practical something else happens. looks like i am focusing on cutting losses fast. i Re entered trades today and took small losses, again i missed the last trade. Since my entries are mechanical, FIXED i have to trade each and every signal. thats what i saw on historical charts, each signal should be traded with small SL. so day by day i am getting a clearer picture that how much per trade loss and profit i am taking and the discipline about my trading system.

Rules are simple, but we make it complex.

1 - You have to trade each signal with small SL with ( Re entries )
2 - on a single SIGNAL there might be atleast 2 LOSS trades, first is regular along with the signal and second might be SAR. there is a chance of third loss also when trying to Re entering either side of same signal.

so lets assume 6 PTS avg loss per trade, 3 loss trade 18 PTS on a single SIGNAL. and there will be another failed signals too in a day.
will Re think everything again on weekend. All in all i can say whatever trades i took were as per the trading signals. some missed.

i will do proper analysis on weekend whatever trades i took. will keep you guys updated, i am a working professional as per US timings EST. so have to rest in between mean time. see you guys.

 

[bunti_k23]

Here is some analysis about my previous trades.

As per my trading system which i am using on 3m TF avg nifty candle is of 10pts. and in all previous trades i have booked losses per trade is less than 10 pts of premium. longest loss was some 9pts. so my patience comes to 10 pts loss in premium per trade.

Lets assume avg loss 6 pts in premium per trade, and i am taking 20 trades in a day in which 14 are losses and 6 are in small profit. i am learning to keep patience when in profit but i was exiting the trade very early near 10 pts of premium.

so simple calulation comes to

(14* 6) * 50 = 4200rs pts loss in premium

(6*6) * 50 = 1800rs in profit in premium.

i will easily blow my account within a week or two.

on 3m TF sometimes SL in nifty comes to near 15-17 pts which makes SL in premium 10-13 pts, adding the inaccuracy of execution of trade it will be slightly more. so i have to improve this situation, either there should be less signals traded per day or i have to increase capital atleast to 2 lakhs.

increasing capital is not possible, so i have to work on trading system itself and need to figure out how i can take less trades with avg loss per trade below 7-8 pts in premium. unless and until i figure out this thing i wont be trading further. let me take a break for 2-4 days or a week, i will resume trading soon.

Any suggestion on this healthy criticism are welcome.

 

[godfather]

Here is some analysis about my previous trades.

As per my trading system which i am using on 3m TF avg nifty candle is of 10pts. and in all previous trades i have booked losses per trade is less than 10 pts of premium. longest loss was some 9pts. so my patience comes to 10 pts loss in premium per trade.

Lets assume avg loss 6 pts in premium per trade, and i am taking 20 trades in a day in which 14 are losses and 6 are in small profit. i am learning to keep patience when in profit but i was exiting the trade very early near 10 pts of premium.

so simple calulation comes to

(14* 6) * 50 = 4200rs pts loss in premium

(6*6) * 50 = 1800rs in profit in premium.

i will easily blow my account within a week or two.

on 3m TF sometimes SL in nifty comes to near 15-17 pts which makes SL in premium 10-13 pts, adding the inaccuracy of execution of trade it will be slightly more. so i have to improve this situation, either there should be less signals traded per day or i have to increase capital atleast to 2 lakhs.

increasing capital is not possible, so i have to work on trading system itself and need to figure out how i can take less trades with avg loss per trade below 7-8 pts in premium. unless and until i figure out this thing i wont be trading further. let me take a break for 2-4 days or a week, i will resume trading soon.

Any suggestion on this healthy criticism are welcome.

Add in a filter to reduce no of trades and since you are getting only 6 trades out of 20 in your favor working on risk reward will be good. Try to change the time frame also to filter no of trades. You will be winning because you are on the right path.

 

[bunti_k23]

Add in a filter to reduce no of trades and since you are getting only 6 trades out of 20 in your favor working on risk reward will be good. Try to change the time frame also to filter no of trades. You will be winning because you are on the right path.

Thanks for the motivation, 6 out of 20 is just a rough calculation it should be abv 8 somewhere. Yes i am thinking to switch to 1 m TF as it suits my risk apetite per trade. i checked same system found out that max risk is coming to 5-6 PTS of nifty that should come to 4 PTS in premium. now i just need to filter out and reduce trades. will update soon.

Happy trading to all!!!

 

[timepass]

Here is some analysis about my previous trades.

As per my trading system which i am using on 3m TF avg nifty candle is of 10pts. and in all previous trades i have booked losses per trade is less than 10 pts of premium. longest loss was some 9pts. so my patience comes to 10 pts loss in premium per trade.

Lets assume avg loss 6 pts in premium per trade, and i am taking 20 trades in a day in which 14 are losses and 6 are in small profit. i am learning to keep patience when in profit but i was exiting the trade very early near 10 pts of premium.

so simple calulation comes to

(14* 6) * 50 = 4200rs pts loss in premium

(6*6) * 50 = 1800rs in profit in premium.

i will easily blow my account within a week or two.

on 3m TF sometimes SL in nifty comes to near 15-17 pts which makes SL in premium 10-13 pts, adding the inaccuracy of execution of trade it will be slightly more. so i have to improve this situation, either there should be less signals traded per day or i have to increase capital atleast to 2 lakhs.

increasing capital is not possible, so i have to work on trading system itself and need to figure out how i can take less trades with avg loss per trade below 7-8 pts in premium. unless and until i figure out this thing i wont be trading further. let me take a break for 2-4 days or a week, i will resume trading soon.

Any suggestion on this healthy criticism are welcome.

On 3 minutes, I keep my target around 0.5 ATR(14) of the option.

If banknifty 44000 PE has ATR(14) = 16, then my target in this option would usually be 8-10 points.

The ATR is an average of 14 candles, of which 1-2 will be big 40-50 points. So, the ATR value will be bigger than the average candle. Hence, if the ATR is 16 points, I assume a rise of about 10 odd points from the bottom of that candle, not my purchasing price.

 

[bunti_k23]

On 3 minutes, I keep my target around 0.5 ATR(14) of the option.

If banknifty 44000 PE has ATR(14) = 16, then my target in this option would usually be 8-10 points.

The ATR is an average of 14 candles, of which 1-2 will be big 40-50 points. So, the ATR value will be bigger than the average candle. Hence, if the ATR is 16 points, I assume a rise of about 10 odd points from the bottom of that candle, not my purchasing price.

Awesome insight TP bhai, will try to incorporate this into system.

 

[bunti_k23]

one more noob question TP bhai, what kind of order is best in 3m TF. i am using market order to BUY and SELL, is there any other type of order preferred like LIMIT, BRACKET. do you have any personal experiences in those type of orders? one more thing, market order will get executed 100% at all cost. what about LIMIT and BRACKET, do these orders get executed because they are for specific price and if this price pass order wont get placed. did you had any experience in this.