Billion Dollar Strategy - Make Profit by Investing More and taking low risk!!

#1
Hi All,

Below is my paper trading statergy which i think will work. Experts and successfull traders are welcome to post their comments/experience and critics.
****************************************************
"Nifty spot Trading @ 4708 August 5th @ 10:13 Am

Paper Trading Strategy:

Initiated the below trades
a) Buy Nifty Aug Future @ 4700 - 20 Lots (rounded to 4700 for computaion purpose)
b) Buy Nifty Option Aug PE 4700 @ 165 - 20 Lots
c) Sell Nifty Option Aug CE 5000 @ 56 - 60 Lots

d) Exit when Nifty reaches 4900 or 5000. When Nifty reaches 4900, sell all the Nifty position (a) and with the earned profit (2lakhs) buy the Nifty 5000 call. By doing this we have created 3 opened position in the market. 1. (b) 2.(c) and 3. Nifty Call Option @ 5000."

"Things to keep in Mind:
1.Trading days Remaining: 17
2. Created many Open position with out any Loss. If you are doing this the for 10 times then Market will reward you atleast 4 times and u can earn a huge profits.
3. whenever we get a reasonable profit in (c) then square of the position since selling nifty call is a high risk trade and also we have initiated this trade only to negate the position created in (b)
4. Market wont trend UP too much in short period with out any news.
5. This Stategy Need a huge capital to trade. Info needed from the experts.
6. This stategy will work when the market goes down, No movment, and slightly bullish.
"


PLEASE SEE THE ATTACHED EXCEL SHEET FOR THE ACTUAL STRATEGY


Thanks,
Winsome.
 

ag_fx

Well-Known Member
#2
Re: Billion Dollar Stragegy - Make Profit by Investing More and taking low risk!!

Code:
Nifty close	4000	4300	4500	4600	4700	4800	4900	5000	5100	5200	5300	5500	5700	6000
a)	-700000	-400000	-200000	-100000	0	100000	200000	300000	400000	500000	600000	800000	1000000	1300000
b)	535000	235000	35000	-65000	-165000	-165000	-165000	-165000	-165000	-165000	-165000	-165000	-165000	-165000
c)	168000	168000	168000	168000	168000	168000	168000	168000	-132000	-432000	-732000	-1320000	-1932000	-2832000


Total	3000	3000	3000	3000	3000	103000	203000	303000	103000	-97000	-297000	-685000	-1097000	-1697000

							Exit 	Exit						
Retrun 	0.112570356	0.112570356	0.112570356	0.112570356	0.112570356	3.864915572	7.617260788	11.369606	3.864915572	-3.639774859	-11.14446529	-25.70356473	-41.16322702	-63.67729831

I have added a new row to your sheet. Which gives return on your capital. I have assumed:

1)Margin requirement for 1 lot future = 35K
2)Margin requirement for Selling 1 lot OPtions= 35K
These margins are higher as of now I guess. But even my conservative estimates, this is the return that your strategy will generate.
 
#3
Re: Billion Dollar Stragegy - Make Profit by Investing More and taking low risk!!

Thanks a lot Ankitgarg!! For throwing some light on the Margin requirments and making this post a usefull one for all the traders!!
 

sudoku1

Well-Known Member
#4
Re: Billion Dollar Stragegy - Make Profit by Investing More and taking low risk!!

but there will b a vast diff in actual trading fig as paper trade does not capture human emotions > greed & fear.

just my xperience.....do carry on ur work friends:)
 
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#5
Re: Billion Dollar Stragegy - Make Profit by Investing More and taking low risk!!

Theory and Paper trading is easy. Real trade is really different.
Anyway I will also paper trade
 

pasha

Active Member
#6
Re: Billion Dollar Stragegy - Make Profit by Investing More and taking low risk!!

Hi All,

Below is my paper trading statergy which i think will work. Experts and successfull traders are welcome to post their comments/experience and critics.
****************************************************
"Nifty spot Trading @ 4708 August 5th @ 10:13 Am

Paper Trading Strategy:

Initiated the below trades
a) Buy Nifty Aug Future @ 4700 - 20 Lots (rounded to 4700 for computaion purpose)
b) Buy Nifty Option Aug PE 4700 @ 165 - 20 Lots
c) Sell Nifty Option Aug CE 5000 @ 56 - 60 Lots
Sizing can be changed to 1:3 if margin is a problem as in
a) Buy Nifty Aug Future @ 4700 - 1 Lot
b) Buy Nifty Option Aug PE 4700 @ 165 - 1 Lots
c) Sell Nifty Option Aug CE 5000 @ 56 - 3 Lots
Looks like a zero profit/loss strategy unless held till expiry, which is dangerous because of the 3 calls sold for each future.
If nifty goes up by 100 points, calls will gain 3 x 27rs each, put will lose 45rs while futures make 100rs. Net result -26rs.
 
Last edited:

pasha

Active Member
#7
Re: Billion Dollar Stragegy - Make Profit by Investing More and taking low risk!!

The same position with a slightly better R/R profile is
buy 1 4700 call @165
sell 3 5000 calls @ 55
Net result of both positions is the same, ie below 4700, no profit/loss
upto 5000 profit of 300 points
at 5200, loss of 100 nifty points
 
#8
The same position with a slightly better R/R profile is
buy 1 4700 call @165
sell 3 5000 calls @ 55
Net result of both positions is the same, ie below 4700, no profit/loss
upto 5000 profit of 300 points
at 5200, loss of 100 nifty points
Good Strategy: But when Nifty goes to 5200-6000, we have to suffer huge loss. But if we had a Long Nifty future (trade (a) as in the above strategy list), we can square off it and initiate another position by buying Nifty call option @4900 there by reducing the risk.
 

AW10

Well-Known Member
#9
Good Strategy: But when Nifty goes to 5200-6000, we have to suffer huge loss. But if we had a Long Nifty future (trade (a) as in the above strategy list), we can square off it and initiate another position by buying Nifty call option @4900 there by reducing the risk.
what is the probability that nifty will touch 5200 (i.e. 12% move) in next 17 trading days
specially after it has already travelled 800 pts i.e. 20% (from 3900 level) without any retracement.

Probabilty of hitting the breakeven level during the remaining life of option is an important factor in options trading.

Happy Trading
 
#10
Re: Billion Dollar Stragegy - Make Profit by Investing More and taking low risk!!

Hi All,

Below is my paper trading statergy which i think will work. Experts and successfull traders are welcome to post their comments/experience and critics.
****************************************************
"Nifty spot Trading @ 4708 August 5th @ 10:13 Am

Paper Trading Strategy:

Initiated the below trades
a) Buy Nifty Aug Future @ 4700 - 20 Lots (rounded to 4700 for computaion purpose)
b) Buy Nifty Option Aug PE 4700 @ 165 - 20 Lots
c) Sell Nifty Option Aug CE 5000 @ 56 - 60 Lots

d) Exit when Nifty reaches 4900 or 5000. When Nifty reaches 4900, sell all the Nifty position (a) and with the earned profit (2lakhs) buy the Nifty 5000 call. By doing this we have created 3 opened position in the market. 1. (b) 2.(c) and 3. Nifty Call Option @ 5000."

"Things to keep in Mind:
1.Trading days Remaining: 17
2. Created many Open position with out any Loss. If you are doing this the for 10 times then Market will reward you atleast 4 times and u can earn a huge profits.
3. whenever we get a reasonable profit in (c) then square of the position since selling nifty call is a high risk trade and also we have initiated this trade only to negate the position created in (b)
4. Market wont trend UP too much in short period with out any news.
5. This Stategy Need a huge capital to trade. Info needed from the experts.
6. This stategy will work when the market goes down, No movment, and slightly bullish.
"


PLEASE SEE THE ATTACHED EXCEL SHEET FOR THE ACTUAL STRATEGY


Thanks,
Winsome.
This strategy can be tried ) Buy Nift fut at 4700 2 lots
Sell Nifty pe str 4700 2 lots at 165

Sell Nifty Ce str 5000 6 lots at 55
 

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