My System - My trades.

[varunkochhar]

Just chew on this and realise this simple yet powerful concept." The EMA's are nothing but dynamic (not static) trendlines which you donot need to draw again and again." Whenever there is a touch, you add to your positions and exit and take opposite trade on convincing breach of it. Just think about it and you would be good.

 

[varunkochhar]

Yes Sai ji to a small extent but since options are a derivative of price, i rely more on the basic price. And one more important thing, when you play options, never base SL on the basis of the price of the option, always on the basis of the underlying because of the premium decay.

 

[yachusai]

Yes Sai ji to a small extent but since options are a derivative of price, i rely more on the basic price. And one more important thing, when you play options, never base SL on the basis of the price of the option, always on the basis of the underlying because of the premium decay.

Sir in some posts you said use zeroline concept . your option strategy also same zero line concept??? . if call or put crosses zero you take position in that right sir

 

[varunkochhar]

A lot of people have been sending me private messages regarding the rules of my system. Now if you realise there is no system as such(sorry No Holy Grail) just a few ingrained basic rules. So if somebody could help formulate(in better and simple terminology) a strategy based on my inputs regarding the usage. My only criteria to take a trade is when both price and OBV are on the same side of 200EMA and to add (or take profits) in case of touches to the 36EMA. Now how do i explain this simple concept in a fancifull way. Beats me.

 

[varunkochhar]

I guess the reason people keep asking for the system is that they expect a lot of indicators from a system to make it succesful, and at first sight they reject this simple method (i still beleive it is not a system). It is only by actually using this concept realtime you will realise the power of this simple method.

 

[varunkochhar]

Yes SAI ji not only in that strike but i begin accumulating in higher strikes also. So say if i get a signal in 19000 strike price spread, i trade in 19000 CE and start accumulating the 19100 calls from my profits of trading. For example if the price of 19100 call at the time of going above the zero line is say 45. I buy at 45/50/55/60/65 skip 70. buy at 75/80/85/90/95. Start selling at 69/74/79/84/89/94/99 and 104 simultaneously. So i make 24points each in my 1st 5 buys (120points) and 19 points each in my next 3 buys(57 Points). A total of 177 points. I am left with 2 options in hand bought at 90 and 95 whose costing to me becomes about Rs.4 each. (As i so many times say almost free). Pls do not follow this till you completely understand the risk involved because you just might be left with the 1st five positions in hand without a sell.

 

[varunkochhar]

This method i have started applying just recently so cannot comment about the success rate. The reason i have started this method is that you can ride the whole trend as there is no temptation to sell as the options in hand are virtually free and there is no risk of loss. Yes it might go to 200 and then expire at zero, but that is a call one has to take. Earlier i was not able to hold onto my options because there was a cost attached to its acquisition, but now i am relaxed about it.

 

[varunkochhar]

One can sell the 9th one also at 104 thus not only making the last one totally free but also taking more than a 100 points (Rs.4000) home. This concept is relatively new to me so really haven't given it much thought.

 

[varunkochhar]

I hope this thread is not going too fast. I can stop posting for a while. What say ?

 

[varunkochhar]

Beleive me when options start moving, all these trades happen in quick time, sometimes in less than an hour, so you should always have a plan beforehand. You cannot take these decisions in realtime if your orders are not in place beforehand.