A brief study on nifty options for intraday

[bunti_k23]

Dear buntiji,
For only use market orders fire into broker why need this paid app?
you can use option chain of broker terminal and enter trade from there

Hi VJAY, thanks for the suggestion.

However the sole reason to go algo is to reduce the distraction of watching two screens and the execution time.
My strategy is running in amibroker(Trial version) and to some extent i know coding and can make few changes in code as per requirement.

Yes I will be using market orders only but through Amibroker via algo terminal (Hoping for less execution time). here I am doing manual trading only.

From cost point of view. Algomojo is offering lifetime free api if we open account through referral. also Fyers are not charging for their API. If i compare COSTS, the difference coming is brokerage. SASONLINE was charging 9rs per order and FYERS is charging 20 rs per order.

So lets trade less and try to be profitable(Survive in my newbie case) instead of overtrading

 

[bunti_k23]

Done with Module installation from Algomojo, just had small query for change in module with them and again i have to face that Lame Lady call representative. To my surprise on asking a query she disconnected the call, so I have to call again and then she told that i will receive the callback from their Backend team.

But all in all their execution speed is ultrafast, orders are getting placed less than sec. I don t have to get distracted anymore.
Now its time to start.....

 

[bunti_k23]

An observation of SPOT vs Nifty option strike on 5 min TF

SPOT - candle entry time 11:55 and EXIT time 12:05 as per SPOT

what happened on premium on same time, on SPOT its a profitable trade with 5 PTS. with FYERS my breakeven is coming @2PTS in premium with 1 LOT.

check 3 strike ITM 20300PE - candle entry time 11:55 @141 - candle exit time 12:05 @138 - showing 3 PTS LOSS in premium.........
if we consider SL is low of entry candle then entry - entry candle = 6PTS in premium.

check 7-8 strike ITM 20500PE - candle entry time 11:55 @314 - candle exit time 12:05 @310 - showing 4PTS LOSS in premium. if we consider SL is low of entry candle then entry - entry candle = 10 PTS in premium.

 

[bunti_k23]

This single candle made move of more than 20 PTS on SPOT.

7-8 strike ITM moved 25 PTS

 

[timepass]

Options - you are watching weekly or monthly ?

 

[bunti_k23]

Options - you are watching weekly or monthly ?

Weekly expiry

 

[bunti_k23]

Little coding help is needed....I have tried my best to make changes but unable to make it. I think barsince function is used to Plot this Yellow stoploss line upto only 10 bars in future.

The problem I am facing is that stoploss line of previous signal is squeezing the charts because it will show till next signal.

I want to make it till 10 bars in future not till next signal. tried using chatgpt and all, but exhausted

 

[bunti_k23]

Hello everyone, I am back

so far, i have opened new brokerage account with Shoonya and also subscribed Algo service annual plan with algomojo. As of now I have started trading from new year. not trading on each day but i try to sit and trade.

My usual routine is to wakeup at 8.50 AM and getting fresh till 9.10, in 5 minutes i configure the strike prices and enable it from algomojo s website. After trading hrs my daily Job starts at 6.30 PM ist and ends at 3.30 AM ist. so i just have almost less than 5 hrs of sleep, and due to this i feel lethargic.

Anyways, in this realtime learning curve i will be taking some breaks in between to correct my erros. But i will be available in forum.

Also i am planning to BUY annual plan of accelpix data provider, kindly give your thoughts about it.
https://www.traderji.com/community/threads/shall-i-buy-accelpix-annual-plan.112052/

As my real trading is started, lets see how much time it takes me to settle and be in profits. Right now I am finding it hard to trade my own system with discipline, One thing i am doing always is booking LOSS quickly everytime about 4-5 pts on an average of 150-200 premium on 3 M TF. But i realized the average candle LOW or HIGH comes near 8 PTS and because of this I am getting stopped out and then trade is going in my favour.

I also started scalping on VWAP by doing quick entry and exit within secs. See below chart, my AIM is to BUY near VWAP and exit when in UPTHRUST. BLUE candles are VWAP signals, trying to get lowest price and EXITING in UPTHRUST. Sometimes candle is soo deep i take loss for that trade. But in all the cases i EXIT in 1-2 PTS of premium.

Lets see how many months it takes to settle down with my system, I am not only trading VWAP but i have my own Rule based trading system. Atleast for entries and profit booking based on momentum with 4-5 PTS SL in PREMIUM.

 

[bunti_k23]

My few cents on options intraday Buying so far.....

1 - I am trading as per the charts, but not taking loss as per the charts.

Let me elaborate this a bit further,

My SL is coming LOW or HIGH of signal candle (here i am assuming as signal candle is average candle size and not abnormal one). But i am unable to keep patient till SL hits, i am exiting the position early. reason being i want to cut losses short, Now this is leading to Being wrong even when your signal is right. Even on the right signal which looks profitable on charts i am ending up with losses.

Sole reason for this i think is my bad money management. I am planning my per day loss below 800rs because i have only 20k funds in my account, now after losses it has became to 15.5k something. because of under capitalization i am cutting losses faster even everything is looking good on charts.

I am trading on NIFTY 2-3 strikes ITM for which DELTA value is coming around 0.6 - 0.7.
on 3M TF of NIFTY average candle size comes around 13-14 PTS, that means my SL on PREMIUM is coming around 10 PTS per trade.

so if i am keeping SL below or above of candle that means i have to let my system breathe this bracket properly and need to keep patience while doing this.

Lets assume 2 STRIKE ITM premium is coming around 200rs, so 10 PTS loss is coming around 500rs for 1 LOT.
So here if i take only 2 LOSS trades in starting I am getting out for the DAY. But i am not doing so, because I am using Mechanical entries and assuming i have to take every trading signal coming on charts for complete day. In a mechanical trading system there is random distribution of good and bad signals. so i have to trade each signal in order to see Good ones.

2 - Second reason i find here is doing Re entries, FOMO (fear of missing out).

Because of 1st reason i am booking profits early and not letting my trading system run smoothly. I am doing scalping here instead of holding on to the momentum. Cutting losses in short before my SL level given by trading system and doing Re entries later which causing again losses.

These are the thoughts about trading my system which i am using.

I have got one temporary solution for this, which actually not good for overall profitability as per intraday options trading. i.e going for OTM strikes, not far OTM but just 1 - 2 strikes OTM. premium should come around 100rs.

I checked charts with 100rs premium strike price and came to conclusion that the SL is coming low as per my trading system because of low delta.
delta is something between 0.40 - 0.50.

so as per average candle size of NIFTY on 3M TF which is 15 PTS half of that comes to near about 7 PTS or below in premium. Ideally ITM strikes gives more BANG for BUCKS. But untill i manage atleast more capital i will continue with these OTM strikes.

Other thing i was trading was VWAP. i found HIT rate on VWAP is more than my system. there are more number of profitable trades than loosing trades on VWAP scalping on 1 M TF. But there will be 1 bad trade that will wipe out almost all of your profit earned from good trades. So for this i need strict SL system. dont know how to Put strict SL when buying. I only know MARKET order, i did not tried any other order type yet.

is anyone doing scalping here on option Buying in NIFTY? what kind of order type you guys are using? Let me know if anyone doing scalping.

 

[timepass]

My few cents on options intraday Buying so far.....

1 - I am trading as per the charts, but not taking loss as per the charts.

Let me elaborate this a bit further,

My SL is coming LOW or HIGH of signal candle (here i am assuming as signal candle is average candle size and not abnormal one). But i am unable to keep patient till SL hits, i am exiting the position early. reason being i want to cut losses short, Now this is leading to Being wrong even when your signal is right. Even on the right signal which looks profitable on charts i am ending up with losses.

Sole reason for this i think is my bad money management. I am planning my per day loss below 800rs because i have only 20k funds in my account, now after losses it has became to 15.5k something. because of under capitalization i am cutting losses faster even everything is looking good on charts.

I am trading on NIFTY 2-3 strikes ITM for which DELTA value is coming around 0.6 - 0.7.
on 3M TF of NIFTY average candle size comes around 13-14 PTS, that means my SL on PREMIUM is coming around 10 PTS per trade.

so if i am keeping SL below or above of candle that means i have to let my system breathe this bracket properly and need to keep patience while doing this.

Lets assume 2 STRIKE ITM premium is coming around 200rs, so 10 PTS loss is coming around 500rs for 1 LOT.
So here if i take only 2 LOSS trades in starting I am getting out for the DAY. But i am not doing so, because I am using Mechanical entries and assuming i have to take every trading signal coming on charts for complete day. In a mechanical trading system there is random distribution of good and bad signals. so i have to trade each signal in order to see Good ones.

2 - Second reason i find here is doing Re entries, FOMO (fear of missing out).

Because of 1st reason i am booking profits early and not letting my trading system run smoothly. I am doing scalping here instead of holding on to the momentum. Cutting losses in short before my SL level given by trading system and doing Re entries later which causing again losses.

These are the thoughts about trading my system which i am using.

I have got one temporary solution for this, which actually not good for overall profitability as per intraday options trading. i.e going for OTM strikes, not far OTM but just 1 - 2 strikes OTM. premium should come around 100rs.

I checked charts with 100rs premium strike price and came to conclusion that the SL is coming low as per my trading system because of low delta.
delta is something between 0.40 - 0.50.

so as per average candle size of NIFTY on 3M TF which is 15 PTS half of that comes to near about 7 PTS or below in premium. Ideally ITM strikes gives more BANG for BUCKS. But untill i manage atleast more capital i will continue with these OTM strikes.

Other thing i was trading was VWAP. i found HIT rate on VWAP is more than my system. there are more number of profitable trades than loosing trades on VWAP scalping on 1 M TF. But there will be 1 bad trade that will wipe out almost all of your profit earned from good trades. So for this i need strict SL system. dont know how to Put strict SL when buying. I only know MARKET order, i did not tried any other order type yet.

is anyone doing scalping here on option Buying in NIFTY? what kind of order type you guys are using? Let me know if anyone doing scalping.

Not nifty, banknifty. Options priced Rs.250-300 (the nearness of the strike varies with vix). The deciding system is 5/20 crossover on 3 min, if the 15 min is in favorable direction. Exit at 8-14 points (or 2/3 ATR)