Karthiks Options Trading Strategy
- Thread starter karthik_sri
- Start date
I will be posting my Strategy in the coming days.
We will be using a price action and an Indicator for Trade and I have tested this in Intraday only with NIFTY Options!!!
This strategy will not give you much more return but as far as I am concerned when I trade in Options I look for the % of return rather volume of Return. But this strategy will give you a decent return of 5% to 10% per trade. As I said I have tested this strategy with NIFTY only and in the coming threads I will take you through the charts of Entry, Exit & SL
Basic Setup
Time Frame for Trading: Intraday chart of 30 or 15 Min time frame
Time Frame for selecting the strike Price: EOD
Scrip/Underlying: NIFTY
Indicator:
1). WMA (Weighted Moving Average) of High period 5 & WMA of Low period 5
2). CCI with 14 period
Rules/Strategy
Entry Setup
Rule 1). We look for the 15 or 30 Min candle to close above High of WMA5
Rule 2). CCI Reading > 50
Rule 3). Don't consider the setup when CCI Reading is >=200
Rule 3). 15 or 30 Min candle should not touch High & Low of WMA5
At time Rule 1 & 2 will be met and the candle will touch High & Low of WMA5 in such case don't initiate the trade and wait for another setup to form.
When all the above mentioned conditions/rules met place Buy Order on the High price of the trigger candle.
SL Setup
Rule 1). Low of the trigger candle.
Exit Setup
Since we are trading with NIFTY Options We aim to exit with Rs.1000/- (20 points)
I will make this clear with the chart's in the coming thread. As I said the return of Rs.1000/- is decent for the capital of Rs.10000/- per trade which is good enough as we are getting 10% return. :thumb:
I have not posted the Short sell setup as In OPTIONS we cant do short sell.
Cheers
Karthik
This strategy will not give you much more return but as far as I am concerned when I trade in Options I look for the % of return rather volume of Return. But this strategy will give you a decent return of 5% to 10% per trade. As I said I have tested this strategy with NIFTY only and in the coming threads I will take you through the charts of Entry, Exit & SL
Basic Setup
Time Frame for Trading: Intraday chart of 30 or 15 Min time frame
Time Frame for selecting the strike Price: EOD
Scrip/Underlying: NIFTY
Indicator:
1). WMA (Weighted Moving Average) of High period 5 & WMA of Low period 5
2). CCI with 14 period
Rules/Strategy
Entry Setup
Rule 1). We look for the 15 or 30 Min candle to close above High of WMA5
Rule 2). CCI Reading > 50
Rule 3). Don't consider the setup when CCI Reading is >=200
Rule 3). 15 or 30 Min candle should not touch High & Low of WMA5
At time Rule 1 & 2 will be met and the candle will touch High & Low of WMA5 in such case don't initiate the trade and wait for another setup to form.
When all the above mentioned conditions/rules met place Buy Order on the High price of the trigger candle.
SL Setup
Rule 1). Low of the trigger candle.
Exit Setup
Since we are trading with NIFTY Options We aim to exit with Rs.1000/- (20 points)
I will make this clear with the chart's in the coming thread. As I said the return of Rs.1000/- is decent for the capital of Rs.10000/- per trade which is good enough as we are getting 10% return. :thumb:
I have not posted the Short sell setup as In OPTIONS we cant do short sell.
Cheers
Karthik
I am having data for the period from 12th Jul'13 to 4th Oct'13 and will post the charts from these periods.
12th Jul'13 Index Nifty Close price : 6017.70
We will take the nearest Call & Put Option strike price which is 6000 to trade Intraday on 15th Jul'13 as 13th & 14th being holiday. I prefer to take Ïn the Money Strike Price" and the reason I will explain after posting some charts and trades.
We will watch NIFTY 6000 Put & NIFTY 6000 Call on 15th Jul'13 with 15 min time frame.
NIFTY 6000 Call chart of 15th Jul'13 below
http://i.imgur.com/X6MT9sF.png
In the attached above Intraday Chart of 15min the candle closed above WMA High and conditions are numbered.
(1) The Candle closed above 5WMA High (1st condition satisfied)
(2) The Close price of the candle is Higher than 5WMA High (1st condition confirmation)
(3) CCI reading > 50
(4) The piercing candle not touched both High & Low of 5WMA
We place buy order at High of trigger candle which is Rs.79.00. Buy order triggered and we exit at minimum of 10 points or Rs.500/- which is more than 10% return.
Buy : 3950.00 (Capital employed or Money Invested)
Sell : 4450.00
GP : 500.00 (% of Return 12.60%):thumb:
http://i.imgur.com/KIoiUSe.png
NIFTY 6000 Put Chart of 15th Jul'13 below
No Trading opportunity
Please have a look on the charts and the setup with Entry & Exit and let me have your queries.
Cheers
Karthik
12th Jul'13 Index Nifty Close price : 6017.70
We will take the nearest Call & Put Option strike price which is 6000 to trade Intraday on 15th Jul'13 as 13th & 14th being holiday. I prefer to take Ïn the Money Strike Price" and the reason I will explain after posting some charts and trades.
We will watch NIFTY 6000 Put & NIFTY 6000 Call on 15th Jul'13 with 15 min time frame.
NIFTY 6000 Call chart of 15th Jul'13 below
http://i.imgur.com/X6MT9sF.png
In the attached above Intraday Chart of 15min the candle closed above WMA High and conditions are numbered.
(1) The Candle closed above 5WMA High (1st condition satisfied)
(2) The Close price of the candle is Higher than 5WMA High (1st condition confirmation)
(3) CCI reading > 50
(4) The piercing candle not touched both High & Low of 5WMA
We place buy order at High of trigger candle which is Rs.79.00. Buy order triggered and we exit at minimum of 10 points or Rs.500/- which is more than 10% return.
Buy : 3950.00 (Capital employed or Money Invested)
Sell : 4450.00
GP : 500.00 (% of Return 12.60%):thumb:
http://i.imgur.com/KIoiUSe.png
NIFTY 6000 Put Chart of 15th Jul'13 below
No Trading opportunity
Please have a look on the charts and the setup with Entry & Exit and let me have your queries.
Cheers
Karthik
Similar threads
-
Explore Enhanced Options Strategy Analysis- Backtest Expired Options W/O Downloading From NSE
- Started by newtrader101
- Replies: 6
-
Why do some deep OTM options increase in value while less deep OTM options dont?
- Started by newtrader101
- Replies: 3
-
I have an interesting options trading strategy.
- Started by nan574688
- Replies: 7
-
NSE Changes Nifty Bank Expiry Day to Friday for Future and Options Contracts
- Started by DreamDeal
- Replies: 11
-
