My System - My trades.

[yachusai]

yesterday your option charts sir

 

[newuser_RK]

Ok forget the spreadline concept. You could have started accumulating on getting an initial buy signal from 200 EMA.

So buy once price and obv are convincingly above 200 EMA. can we take swing trades too based on this?

Sent from my AO5510 using Tapatalk

 

[varunkochhar]

We got a buy signal in BankNifty (1min.charts) at 18960 on tue. when both price and OBV went above 200EMA. It did not touch 200EMA in price and OBV since then. Since i told you to base your SL's on the underlying (Bank Nifty future in this case) why depend on 200EMA in option charts as a SL. You should only be adding to your positions in case of touches to these levels in option charts till there is a sell signal in the underlying. Keeping SL based on our concept in option charts may lead to many whips. Any ways if you exit based on 200EMA in options, do remember to buy them again when it goes above it till we have a buy in the underlying. I do not base my SL on option price that is why i have adopted this new method i have discussed. I take regular profits by my advocated method to bring down my cost of acquisition but SL only based on BANKNIFTY.
This way my trades are executed in automode (both buys and sells) and i donot have to spend time on individual option charts and become confused.

 

[varunkochhar]

Yes RK ji all kind of trades.

 

[varunkochhar]

This is a chart of spread between 19100CE and 19100PE. The white line is the spreadline. The red horizontal line is the zero line. I have also plotted 36EMA (Pink) and 200EMA (blue) on this line. Remember i use EMA's as trendline. The green vertical line is where the spreadline went above the previous high (marked by a white horizontal line). At this point the spread line was well and truly above both 36EMA and 200 EMA. This was around 1:54 on tuesday. The price was at Rs.19.80. It went on to make a high of Rs.368.2 the next day. It opened above red line yesterday. The 1st 1min. bar's low was Rs.40 and the bar closed at 68. So in this case waiting for the red line would have resulted in a delayed signal (And the SL would also have been bigger). In this chart also the spread line did not come back to 200EMA line though you had 5 or 6 touches to the 36EMA where one could have added to his positions or trailed SL's.

 

[varunkochhar]

If one was to go by option geeks i don't know whether one could buy it or not as it is greek for me, but definitely one could have easily bought on pictoral representation as in this chart with a very small risk.

 

[varunkochhar]

So how to get rich beyond your wildest imaginations. Just plot a spreadline of the option which is cheap (You can use Rs.20 or Rs30 as threshold levels as per your risk appetite) Just start accumulating it when it gives a breakout and endeavour to make it free and then just sit on it and ride the trend. Your SL's would be very small just a few odd rupees. (It was less than Rs.5 (Rs 200 per lot in this example). Simple na without option geeks. Try it. Rs 100/200.. with a risk of 5-10 rupees, i will take it everytime.

 

[yachusai]

ok sir . thanks

 

[varunkochhar]

Since the initial acquisition is about Rs20 you can add say at a difference of 3 or 4 rupees and start selling just before your 6th acquisition. (Example buy at 20/23/26/29/32/35...) and start selling at 34(just before the 6th acquisition) do this enough to make 1 or 2 options free and realise the magic of this simple technique.

 

[varunkochhar]

This gives best results in BankNifty options as the ATR of BN is around 250.