How about this strategy ??

V

venky1893

New Member
#1
#1
i been trading for 1re in option , when a the 15 and 5 EMA i will buy call or put options according to swing trading techniques, and i will sell for 1re profit . which s almost correct for all his time.so
profit /lot s 50rs , my brokerage s 18rs. so my net profit s 32rs per lot :)

i thought of doing this in more number of lots
s this a good idea ??

of course it needs big investment but for me this seems to be a risk free and tension free strategy .
 
D

darshanshukla

Well-Known Member
#2
#2
venky1893 said:
i been trading for 1re in option , when a the 15 and 5 EMA i will buy call or put options according to swing trading techniques, and i will sell for 1re profit . which s almost correct for all his time.so
profit /lot s 50rs , my brokerage s 18rs. so my net profit s 32rs per lot :)

i thought of doing this in more number of lots
s this a good idea ??

of course it needs big investment but for me this seems to be a risk free and tension free strategy .
Click to expand...
Dear Venky,
trading option with moving avg. cross over is not good idea as option consist of time value and intrinsic value for better trading option with more number of lots (as you trade) see threads by Kavima in derivetives (Median Line entry exit level-part 2) you will gain more with that in option (daily and short term trading)
happy trading ahead,
Darshan
 
G

gunsho

Well-Known Member
#3
#3
venky1893 said:
i been trading for 1re in option , when a the 15 and 5 EMA i will buy call or put options according to swing trading techniques, and i will sell for 1re profit . which s almost correct for all his time.so
profit /lot s 50rs , my brokerage s 18rs. so my net profit s 32rs per lot :)

i thought of doing this in more number of lots
s this a good idea ??

of course it needs big investment but for me this seems to be a risk free and tension free strategy .
Click to expand...
This is more of scalp trading and yes, it will have a high strike rate. You need more thought process to see RR and the psychological aspects.

  • Like when will you exit the legs (Stop loss)? If you will exit at the opposite crossover, you may end up loosing 5 trades profit in 1 trade.
  • How will you place your order? Trigger+Market order or Trigger+Limit order? In first case, your purchase (assuming you have a big trade size 30 lots or similar) will move the price 0.5 or more (taking nifty as an example). In case of SL-Limit order, there is a good chance that your entire buy doesn't get filled before reaching target.
  • You have considered the brokerage, which is good. What about the STT/StampDuty etc...
  • Another mental aspect, how will you feel if you won 10 trades and 11th trade you exit with 1 point profit, and it went for a 40 point run? IOW, on a good trend, you will exit early. Are you ok with that?

Scalp trading is a good cashflow. One needs to understand all +ve/-ve of the same before fixing it :thumb:
 
V

venky1893

New Member
#4
#4
every thing apart, s it possible for me to buy and sell 100 or more lots in the few seconds for the given price ?? ( will my order for 100+ lots will get executed for the given oder price in single time???)
 
G

gunsho

Well-Known Member
#5
#5
venky1893 said:
every thing apart, s it possible for me to buy and sell 100 or more lots in the few seconds for the given price ?? ( will my order for 100+ lots will get executed for the given oder price in single time???)
Click to expand...
Looks like you haven't paid attention to the points.

<snip>How will you place your order? Trigger+Market order or Trigger+Limit order? In first case, your purchase (assuming you have a big trade size 30 lots or similar) will move the price 0.5 or more (taking nifty as an example). In case of SL-Limit order, there is a good chance that your entire buy doesn't get filled before reaching target.<snip>
 
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