Strange, It looks like a contra trade, or is it ? These days SBIN is super hot while INFY is down in the dumps. You must know something that we don't
.
Can you please tell us the reason for the same ? Is it related to USDINR ??
Hi timepass;
Yes, it is a cotra-trade...you can say. Well, just watch this. There may need to average this trade at a different level, if loss from the first position reaches to 50-60,000/- or at a certain ratio.
But then, it will give good profit in the long run
Most of my Pairs trading, I am playing with a concept something like Grid-Pair Trading, perhaps nobody has tried this before. This is the success mantra. But you need a very huge capital to start with...and this is the negative for most of the retail traders.
Sorry...I can't disclose this much more technically. But I have seen, this is the most successful trading method ever devised.
If you start with 1 crore of capital...I can guarantee, your success would be 98%
Four refined internal logic works here:
1. Pairs-Trading
2. Grid-Trading
3. Support-Resistance Level.
4. Strict Money-Management.
4th one is most important. Any pair can deviate to 50-6-70,000/- from your entry point. For example the last Fed-Indusind Trade which is underwater 50K as of now. But 50K is just 0.5% of 1Cr. So, if you have about 10 different Pairs always running in a Grid fashion, so when each of the Pair ratio will go through that Grid...you will keep on booking profit everyday and establish new Grid.
Happy Trading.