Details about Breakout Fading

prst

Well-Known Member
#1
Hi friends,

Could you please guide me regarding the concept of breakout fade.
is it extensively done in our markets by the market movers?
is it profitable to trade against the breakout ?
seniors please shed some light on this.

thanks .
 

DanPickUp

Well-Known Member
#3
Hi friends,

Could you please guide me regarding the concept of breakout fade.
is it extensively done in our markets by the market movers?
is it profitable to trade against the breakout ?
seniors please shed some light on this.

thanks .
Hi

Here an option trading side for such markets, as others have more experience with naked future trading in such markets.

There are different ways to trade such scenarios. Always use at least two different derivatives ( options ).

Here just one simple idea you hopefully can trade in your country. When I say simple, I mean that if you understand this and if you can trade this, you will with more experience see the potential which is behind that strategy. :)

Long or short synthetic future.

Long synthetic future: Buy atm call and sell atm put
Short synthetic future: Sell atm call and buy atm put

If market now moves, you can adjust by selling and buying the necessary put or call. Define your targets with the odds ( Math ) and place limit orders by your broker, in case you are not a real day option trader.

This strategy you should be able to test with oracle software, which is for free in India.

Tc

DanPickUp
 

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