Earn 180% profit through nifty strategy

[PankajC]

Coming back to 'Staying long in Future above 5200 and short below 5200'.

One way could be to use Amibroker & Live Data Feed, and connecting it to trading plugin like Zerodha terminal. Whenever a BUY or SELL signal is generated by Amibroker, the same will be sent for execution, after taking confirmation.

( Read http://zerodha.com/z-connect/charti...-amibroker-plugin/amibroker-zt-trading-plugin )

What I don't know however is, can Amibroker or any Signal Generating s/w generate a Buy/Sell signal simply on price? (of course they do generate on other triggers like MA crossovers..)

If someone can try/explain, the strategy will become very much workable !

 

[cloudTrader]

Coming back to 'Staying long in Future above 5200 and short below 5200'.

One way could be to use Amibroker & Live Data Feed, and connecting it to trading plugin like Zerodha terminal. Whenever a BUY or SELL signal is generated by Amibroker, the same will be sent for execution, after taking confirmation.

( Read http://zerodha.com/z-connect/charti...-amibroker-plugin/amibroker-zt-trading-plugin )

What I don't know however is, can Amibroker or any Signal Generating s/w generate a Buy/Sell signal simply on price? (of course they do generate on other triggers like MA crossovers..)

If someone can try/explain, the strategy will become very much workable !

I suppose you can make your query in this thread of Amibroker section...

http://www.traderji.com/amibroker/90119-simple-coding-help-no-promise.html

 

[suri112000]

The thread owner's idea is definitely out of box thinking. Unfortunately, he has not studied all the scenarios before posting it here.

If he is still active, here are my suggestions to improve it.

Follow any trend following AFL. When a buy signal comes, buy current month future and immediately hedge it with next month ATM put. Have a target in mind say for example, 200 nifty points. When futures meet, the target get out with both positions. But instead, the market drops, there will a short signal gets generated. Go short, next month futures with far month call hedging. (Mind you we have not squared off the long futures position and its hedge when the nifty drops). If the short, hits your target exit short futures and its hedge. Then you roll down hedge of buy position to current ATM. If nifty keeps falling without reversing, keep rolling down your hedge until market reverses and hits your newly calculated profit target on buy side.
This way even if Nifty falls by 3000 points without reversal signal, we could bring the cost of buy position by 1500 points down from its original position. If Nifty drops from 8000 to 5000, your original target being 8200, now the revised buy target becomes 6700. But in reality, Nifty never moved 3000 points with a single signal in 1 Hour timeframe or daily timeframe with any trend following AFL.

This method requires you to keep the long term expiry of puts/calls so that you donot get caught in Theta erosion.

 

[Probability]

Hi Suri,

Strategy looks interesting, just checking if have you tested this strategy in real time and for long ?

 

[newuser_RK]

For A 200 point upmove one may make only 30/40 points rest is eaten away by theta and Delta

Sent from my AO5510 using Tapatalk

 

[rajeshek]

Some links to free Nifty options strategies:

http://intradaytradingsecrets.blogspot.in
(70% success rate strategy)

https://www.youtube.com/watch?v=jxtK58LGPA8

http://www.vfmdirect.in/2015/08/simple-nifty-options-trading-strategy.html

http://bse2nse.com/derivatives/3018-intra-day-options-straddle-strategy-nifty.html

http://optionstrategies.nsecentral.com/strategist

http://www.niftytrader.in/nifty-option-strategy

 

[suktam]

The thread owner's idea is definitely out of box thinking. Unfortunately, he has not studied all the scenarios before posting it here.

If he is still active, here are my suggestions to improve it.

Follow any trend following AFL. When a buy signal comes, buy current month future and immediately hedge it with next month ATM put. Have a target in mind say for example, 200 nifty points. When futures meet, the target get out with both positions. But instead, the market drops, there will a short signal gets generated. Go short, next month futures with far month call hedging. (Mind you we have not squared off the long futures position and its hedge when the nifty drops). If the short, hits your target exit short futures and its hedge. Then you roll down hedge of buy position to current ATM. If nifty keeps falling without reversing, keep rolling down your hedge until market reverses and hits your newly calculated profit target on buy side.
This way even if Nifty falls by 3000 points without reversal signal, we could bring the cost of buy position by 1500 points down from its original position. If Nifty drops from 8000 to 5000, your original target being 8200, now the revised buy target becomes 6700. But in reality, Nifty never moved 3000 points with a single signal in 1 Hour timeframe or daily timeframe with any trend following AFL.

This method requires you to keep the long term expiry of puts/calls so that you donot get caught in Theta erosion.

hi
Suriji...
why you chose next and far month option... not current month?
Regards...

 

[Reyansh]

hi
Suriji...
why you chose next and far month option... not current month?
Regards...

@Suktam

If you read his post carefully, you will see he already has given the answer to your question. His last line in the post you quoted goes as following:

This method requires you to keep the long term expiry of puts/calls so that you do not get caught in Theta erosion.

So he takes those next and far month options because of theta reasons. Theta is time and is one of several criteria when it comes to the calculation of a certain option value. You may heard about "Black&Scholes Formula". If not, just Google it to get familiar with.

 

[suktam]

The thread owner's idea is definitely out of box thinking. Unfortunately, he has not studied all the scenarios before posting it here.

If he is still active, here are my suggestions to improve it.

Follow any trend following AFL. When a buy signal comes, buy current month future and immediately hedge it with next month ATM put. Have a target in mind say for example, 200 nifty points. When futures meet, the target get out with both positions. But instead, the market drops, there will a short signal gets generated. Go short, next month futures with far month call hedging. (Mind you we have not squared off the long futures position and its hedge when the nifty drops). If the short, hits your target exit short futures and its hedge. Then you roll down hedge of buy position to current ATM. If nifty keeps falling without reversing, keep rolling down your hedge until market reverses and hits your newly calculated profit target on buy side.
This way even if Nifty falls by 3000 points without reversal signal, we could bring the cost of buy position by 1500 points down from its original position. If Nifty drops from 8000 to 5000, your original target being 8200, now the revised buy target becomes 6700. But in reality, Nifty never moved 3000 points with a single signal in 1 Hour timeframe or daily timeframe with any trend following AFL.

This method requires you to keep the long term expiry of puts/calls so that you donot get caught in Theta erosion.

hi
Suri ji...
i got my ans.from other friend "Reyansh"
my other doubt above strategy is not comfort for stock trading because to trade in next and far monrh in option is to hard...then any other ideas for hedging..
Regards....

 

[Subhadip]

hi
Suri ji...
i got my ans.from other friend "Reyansh"
my other doubt above strategy is not comfort for stock trading because to trade in next and far monrh in option is to hard...then any other ideas for hedging..
Regards....

Buy deep ITM call and sell slightly ITM call.same month.same quantity