NIFTY Futures Mechanical Trading

debdeeps · #**311** 12th February 2008, 10:56 AM

Quote:

Originally Posted by nadodav

4781.1 may be last traded price. as per NSE's Daily Settlement Prices, Nifty Future closed at 4810.55

Vinod

Ok, thanks for the clarification. By the way when are we going to take next position or short? I am very much interested in your mechanical trading method.

Thanks,

ravalsb · #**312** 12th February 2008, 12:56 PM

Quote:

Originally Posted by marcus

I'm of the opinion gaps down would be more than gap ups,I am not sure about this is I have not calculated for myself but this is what my thinking tells me may be possible. Because declines are always sharper than rallies primarily because people tend to book profit during rallies and we may not see many large gap ups but during declines especially with short selling not being allowed in India in the past (I know its allowed now) gap downs are more severe and prone due to panic selling.

Marcus,

It would also matter whether we are long or short at that particular time.

If we are short, Gap downs would be in our favour and gap ups would be not be in our favour. Since according to your analysis, gap ups are not as strong as gap downs are severe, going short seems to be better proposition. Appreciate your analysis.

It would be interesting to see if we can work out options strategies using these support and resistance levels as kind of benchmark.

That is to say, By trading options (not hedging) instead of Nifty Futures we can definitely leverage our funds better.

We all know that this system is working fine and support/resistance levels are also good. Point is can we work out options strategies??

Vinod, do you think it is viable??

Thanks & Regards

nadodav · #**313** 12th February 2008, 07:28 PM

Quote:

Originally Posted by marcus

Are you sure at the end of the year gap downs will negate the gap ups?

I'm of the opinion gaps down would be more than gap ups,I am not sure about this is I have not calculated for myself but this is what my thinking tells me may be possible. Because declines are always sharper than rallies...

Hello marcus

I agree that gaps down is sharper than gaps up and may be at the end of year, gap down be more than gap ups. but my points is - as the method is following a trend, gaps up and gaps down both, atleast 60%, will be in our favour and rest 40% may be against. so overall it should not affect our over all result. you can check the 6210 short trade, where there are gaps down for some days and all are in favour. Gaps up or down will definetely affect when there is rangebound or sideways period. And not only in my model but any trend following system this should be applicable.

I always welcome & truly appreciate your suggestion to improve the system & it also helps me a lot to re-look some areas of my system to do a better one. thanks for that.

Thanks & Regards

Vinod

nadodav · #**314** 12th February 2008, 07:33 PM

Quote:

Originally Posted by ravalsb

Marcus,

It would also matter whether we are long or short at that particular time.

If we are short, Gap downs would be in our favour and gap ups would be not be in our favour. Since according to your analysis, gap ups are not as strong as gap downs are severe, going short seems to be better proposition. Appreciate your analysis.

It would be interesting to see if we can work out options strategies using these support and resistance levels as kind of benchmark.

That is to say, By trading options (not hedging) instead of Nifty Futures we can definitely leverage our funds better.

We all know that this system is working fine and support/resistance levels are also good. Point is can we work out options strategies??

Vinod, do you think it is viable??

Thanks & Regards

Dear ravalsb,

I don't think it will be viable to trade options instead of futures with my system as we have to race with time. options should be traded either for hedging purpose or with options strategies.

Vinod

optionstrader · #**315** 12th February 2008, 07:42 PM

Hi Friends,

I am stuck with Nifty Feb Futures purchased at 5200...averaged at 5095..

I need your guidance , shall i average it more, hold it or book loss at 4800 or 4900.

I need your guidance, that will help me to make up my mind.

Awaiting your quickest response,

Thanks & Regards,
optionstrader

nadodav · #**316** 12th February 2008, 07:44 PM

NIFTY FUTURE For February 13,

Current position : NIL

Nifty Fut Closed at : 4795.35

Net Profit / (Loss) since thread started : +926

Support : 4776
Resistance : 4900

I will go LONG above 4900 with SL 4776.

All new members visiting first time are requested to read all messages start from first one before going ahead.

Happy Trading.

Vinod

nadodav · #**317** 12th February 2008, 08:34 PM

Quote:

Originally Posted by optionstrader

Hi Friends,

I am stuck with Nifty Feb Futures purchased at 5200...averaged at 5095..

I need your guidance , shall i average it more, hold it or book loss at 4800 or 4900.

I need your guidance, that will help me to make up my mind.

Awaiting your quickest response,

Thanks & Regards,
optionstrader

Hi

Its difficult to advise only i can suggest is to decide one fixed stoploss whatever you feel as per your risk appetite and hold your position strictly with that stoploss. Futures trading should be done with strict stoploss. I do not believe in averaging in futures trading. it is ultimately your money and only you should decides better. As per my system of trading, i will go long tomorrow if nifty futures trades above 4900 with stoploss as 4776 this is just for your information and if tomorrow market trades above 4900, you can hold your position with my stoploss as 4776 if you feel comfirtable.

Thanks & Regards

Vinod

sudoku1 · #**318** 12th February 2008, 09:07 PM

Quote:

Originally Posted by optionstrader

Hi Friends,

I am stuck with Nifty Feb Futures purchased at 5200...averaged at 5095..

I need your guidance , shall i average it more, hold it or book loss at 4800 or 4900.

I need your guidance, that will help me to make up my mind.

Awaiting your quickest response,

Thanks & Regards,
optionstrader

ITS WELL SAID THAT .....WHEN IN DOUBT , GET OUT....
if u r confused , try exiting 50% positions till u feel comfortable....
after that , whichever way the mkt goes , u will b stronger than before....
how...?
if the mkt still reels down , u will have a light longs & suppose , it makes a bottom from wher u exit ur 50% , still u will b able 2 ride the uptrend...

arjit · #**319** 12th February 2008, 09:13 PM

Dear Vinod,I am happy that at last you have decided to take position.It will help us to take position accordingly.You are most WELCOME.Thanks.

optionstrader · #**320** 12th February 2008, 10:12 PM

Hi sudoku1 and Nadodav !

Thank you so much for prompt response and support.
You have encouraged me.

Could you please also guide me , that shall i sell 1 lot at the price nearer to my average price of 5195....for example...at 4800 or 4900 ?

I guess , since nanodev said that he plans to go long of nifty trades above 4900.

What would you suggest, that shall i hold my position as nanodev said, or shall i sell 1 lot at 4800 or 4900 tomorrow ?

Kindly help me out to clear this also.

Awaiting your quickest response,

Thanks & Regards,
Optionstrader