Day Trading Stocks & Futures

[sridhga]

was there a risk reward for short at open after gap down of 120 points

How do you calculate the risk reward after a gap up or gap down? I genuinely do not know.

But today's fall was in line with higher time frame of daily charts. That is what I noticed and posted. Only thing was today's fall at the end turned out to be climactic with the steepness.

PS: Please let me know if there is a way for such risk-reward calculation. I want to learn.

 

[travi]

How do you calculate the risk reward after a gap up or gap down? I genuinely do not know.

But today's fall was in line with higher time frame of daily charts. That is what I noticed and posted. Only thing was today's fall at the end turned out to be climactic with the steepness.

PS: Please let me know if there is a way for such risk-reward calculation. I want to learn.

i had expiry trades and from my experience they join heaven and hell to hit that expiry level.
Today i got kicked in the face

once in a while this will happen ( very rarely ) but i will not try and adjust for this black swan type thing.
Calendar spread / butterfly work well mostly from Wed entry.
I would like to believe that even biggies got hurt today but that is just my belief

 

[checkmate7]

i had expiry trades and from my experience they join heaven and hell to hit that expiry level.
Today i got kicked in the face

once in a while this will happen ( very rarely ) but i will not try and adjust for this black swan type thing.
Calendar spread / butterfly work well mostly from Wed entry.
I would like to believe that even biggies got hurt today but that is just my belief

Yes this happens once in a while its part and parcel of the game....I am sure before this when it was going good for swing you would have minted good money

How much is the success behind calendar and butterfly...have you done any backtest if I may ask?

 

[siddhant4u]

How do you calculate the risk reward after a gap up or gap down? I genuinely do not know.

But today's fall was in line with higher time frame of daily charts. That is what I noticed and posted. Only thing was today's fall at the end turned out to be climactic with the steepness.

PS: Please let me know if there is a way for such risk-reward calculation. I want to learn.

gap down, tried to go back but couldn't break day high, with small Sl of 30 odd points one could have gone short. However, in market like this it's worth looking at heavyweight stocks if they have broken any structure... y'day (and day before) hdfc, hdfcbank, icicibank and itc had broken their structure.. one could fairly deduce that sell off will continue in these stocks.

edit: that said, such conditions are not always visible on every gap up/down days. I stayed away from market

 

[siddhant4u]

i had expiry trades and from my experience they join heaven and hell to hit that expiry level.
Today i got kicked in the face

once in a while this will happen ( very rarely ) but i will not try and adjust for this black swan type thing.
Calendar spread / butterfly work well mostly from Wed entry.
I would like to believe that even biggies got hurt today but that is just my belief

I think intensity this time it bigger due to everyone anticipating fall in advance, so in first sign of danger everyone started selling off. this is why no round number or magic 11000, 10900 were respected at all...

 

[tradermodified]

NF/BNF

most likely, to open gap up

 

[sridhga]

NF/BNF

most likely, to open gap up

Is this view based on SGX Nifty and US markets?
Or is it based on the last 10 minutes of trade?

 

[mohan.sic]

guys, careful in option buying today... premiums shooted up yesteray closing and they slightly cooled off at opening but today being friday can move down steeply from even these levels...

 

[against_tides]

guys, careful in option buying today... premiums shooted up yesteray closing and they slightly cooled off at opening but today being friday can move down steeply from even these levels...

Yup.. very high premium

 

[Apacheindian]

If it fails to clear and sustain above 10960, i will go short.