need suggestion in option scalping

#1
Hi friends,

My trading plan:
1. Broker - zerodha
2. trade option just OTM (for high fluctuation)
3. trade 500 qty of nifty option
4. target = Rs 0.5
5. sl = rs.1.5
6. it should be bracket order

my plan is to keep target very small so that it will hit very easily. keeping sl just in case trade goes suddenly in opposite direction.

our target must achieve within few min of trade.
so we get 500*.5=250 less brokerage 50 net profit 200 per trade.

if we execute x number of trade per day, chances are we will hit target more often then sl.

I have not tried this method yet, but asking if anyone has tried it before.

please experts suggest
 

kainiteh

Well-Known Member
#2
Hi
Lot size should be multiple of 75 only
Scalping needs tons of understanding and highest screen time
1:3 R:R is not recommendable 3 trader washed in 1 loss + charges
your plan need to consider slippage...
I do scalping but only on higher probable trade

there are some setup in internet (forexfactory forum)
where Entry long with 1 lot and SL with 2 lot with
short target, long target achieved cancel SL order or
SL order initiated with predefined target

I had traded few times but it was not comfortable to me
also paid large sum of charge :(

All the best,
 
Last edited:
#3
I know RR is very bad but chances of hitting sl is very less as the target is very small it will execute within 30 sec to 1 min(as we will buy option just OTM, and fluctuation of price will do the trick). and sl is placed for very rare occation.
lot size is not important but the concept is. we can change the lot size to 750 also depend upon fund available. I hope i am able to make my point clear.
 
#4
If you want to do multiple trades per day, then paying so much brokerage (per trade) is not a good idea. Better to choose monthly unlimited plan by RKSV or SASonline. You will save a good amount in brokerage itself.
 

tradedatrend

Well-Known Member
#5
Any strategy no matter how lucrative appears with as dangerous RR as 3:1 is never ever recommendable unless one consider himself above god

RR 1:2 and above is recommended
RR 1:1 is still acceptable with a decent strategy
anything below 1:1 should be complete NO NO
RR 3:1 is blasphemous
 
#6
hi, this strategy does not require stoploss but i am doing for just to prevent and sudden change in direction.
i have tested this and earned 30,000 in a day with 50,000 amount. but next day i have lost it due to sudden change in direction and i didnt put any sl. and also because i had choose too much OTM option because of less available investment, so the fluctuation was less.
 

kainiteh

Well-Known Member
#7
As per your trade setup on first page
minimum 150 trades to achieve 30k profit considering 100% winning ratio
:confused::confused::confused:
 
#8
it was not the exact setup i had tried as i mentioned above. i had bought around 800 qty @60 that makes just less the 50000. so by my setup i got 400 per trade.

and yes it will take too many trade... and we can achieve any number of amount.:)
 
#10
@Nishant1011

Many Broker hate scalpers with a passion, because a good scalper can easily beat a broker acting as a counterparty dealer. If you are satisfied with your broker "Zerodha", a fast order execution is guarantied and your commissions are very low, then what do you further want to know?

Scalping is a trading style based on quick momentum trades triggered by order flow reading setups. Most scalping tactics use either indicators or price action or a combination of both. The main idea behind this trading technique is for traders to open a market position and close it within minutes once they have pick up just a few in profit. So I guess you have understood this and I also guess you have your setup you want to use for your scalping.

Still remember: Scalping is highly speculative. Practice often and be sure that you know what you are doing before you decide to start scalping! It’s a fact that inexperienced traders end up with more losses than wins. Practice with a demo account for quit a while to get a clear idea and feeling that you can do it and that your scalping style works.

Now I wish you good luck and take care / Dan :)
 

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