Positional Trades by Raj

anup

Well-Known Member
#1
Hi All,

Raj will be posting his positional calls in this thread. Hope we all can learn on how to analyse the trade.


I request everyone not post anything before Raj puts all his rules. Once All the rules are posted, you can start firing in your query


All the best Raj bhai.
 
Last edited:

healthraj

Well-Known Member
#2
Thanks Anup for starting this thread. First of all the Trades posted here will be for Positional. So it could be used for Cash Trade or Futures Trade or Options Trade. So we will just mention the values in the SPOT. The rules are very simple. It is based on the Tool that I had developed. You can find the link in my signature. It is based on the Options Chains Data from the NSEIndia. It might work where the Stock is Traded heavily in Options. For stocks which are not Traded heavily in Options, the tool will not be able to give a Trade.

Coming to how the Trade is suggested, In the options Chain, You have two sections

The Call (CE) Section on the Left hand side and the Puts (PE) on the Right hand side.

We will pick the Strike where there is MAX Open Interest in CE and we will call it RESISTANCE or MAX OI @ CE

We will pick the Strike where there is MAX Open Interest in PE and we will call it SUPPORT or MAX OI @ PE

We will also calculate the MAX Pain for the Stock. The MAX Pain is simply the Average or the middle point of Support and Resistance. (But using the tools and special formula MAX PAIN could be fine tuned, Or when the Range is moving the MAX Pain need not be the Average of the Support and Resistance.)

Now we have three Values SUPPORT, RESISTANCE and MAXPAIN.

1. Whenever the Stock is NEAR the SUPPORT - We will BUY and Keep the First Target as the MAX PAIN.
2. Whenever the Stock is NEAR THE RESISTANCE - We will SELL and Keep the First Target as the MAX PAIN.
3. The entry is only at SUPPORT or RESISTANCE.
4. KEEP the STOPLOSS as per your Risk strategy. Normally for Positions I hope we need a minimum 2% as the Stop loss
5. So when we have the STOPLOSS as 2% we would also need to make minimum 2% or more as the profit. So we will only suggest where the Profit could be more than 2%.

We will discuss about the Exceptions and What if cases in the next post ?
1. What if SUPPORT Moves DOWN after we take the BUY Position ?
2. What if RESISTANCE Moves UP after we take the SELL Position ?
3. What is MAX PAIN changes ?
Note : We would need some help from the Positional Traders on how they do these adjustments.
 
#4
Now we have three Values SUPPORT, RESISTANCE and MAXPAIN.

1. Whenever the Stock is NEAR the SUPPORT - We will BUY and Keep the First Target as the MAX PAIN.
2. Whenever the Stock is NEAR THE RESISTANCE - We will SELL and Keep the First Target as the MAX PAIN.
3. The entry is only at SUPPORT or RESISTANCE.
4. KEEP the STOPLOSS as per your Risk strategy. Normally for Positions I hope we need a minimum 2% as the Stop loss
5. So when we have the STOPLOSS as 2% we would also need to make minimum 2% or more as the profit. So we will only suggest where the Profit could be more than 2%

sir small suggestion from me also if u can just add one column in ur sheet saying buy /sell
trg & sl
 
#5
So According to the Logic the Positional Trades Generated EOD are as follows.

1. SELL NIFTY NEAR 6100 for Target of 5900.
2. SELL RANBAXY near 400 for Target of 350.
3. SELL YESBANK near 350 for Target of 320.
4. SELL AXISBANK near 1100 for Target of 1050.

Let me know if anyone needs the suggestion for any specific stock
Excellent Raj bhai for this new thread...

In first point You said SELL NIFTY NEAR 6100 , Is it future or spot..

Pls clarify...
 

VJAY

Well-Known Member
#6
Thanks Anup for starting this thread. First of all the Trades posted here will be for Positional. So it could be used for Cash Trade or Futures Trade or Options Trade. So we will just mention the values in the SPOT. The rules are very simple. It is based on the Tool that I had developed. You can find the link in my signature. It is based on the Options Chains Data from the NSEIndia. It might work where the Stock is Traded heavily in Options. For stocks which are not Traded heavily in Options, the tool will not be able to give a Trade.

Coming to how the Trade is suggested, In the options Chain, You have two sections

The Call (CE) Section on the Left hand side and the Puts (PE) on the Right hand side.

We will pick the Strike where there is MAX Open Interest in CE and we will call it RESISTANCE or MAX OI @ CE

We will pick the Strike where there is MAX Open Interest in PE and we will call it SUPPORT or MAX OI @ PE

We will also calculate the MAX Pain for the Stock. The MAX Pain is simply the Average or the middle point of Support and Resistance. (But using the tools and special formula MAX PAIN could be fine tuned, Or when the Range is moving the MAX Pain need not be the Average of the Support and Resistance.)

Now we have three Values SUPPORT, RESISTANCE and MAXPAIN.

1. Whenever the Stock is NEAR the SUPPORT - We will BUY and Keep the First Target as the MAX PAIN.
2. Whenever the Stock is NEAR THE RESISTANCE - We will SELL and Keep the First Target as the MAX PAIN.
3. The entry is only at SUPPORT or RESISTANCE.
4. KEEP the STOPLOSS as per your Risk strategy. Normally for Positions I hope we need a minimum 2% as the Stop loss
5. So when we have the STOPLOSS as 2% we would also need to make minimum 2% or more as the profit. So we will only suggest where the Profit could be more than 2%.

We will discuss about the Exceptions and What if cases in the next post ?
1. What if SUPPORT Moves DOWN after we take the BUY Position ?
2. What if RESISTANCE Moves UP after we take the SELL Position ?
3. What is MAX PAIN changes ?
Note : We would need some help from the Positional Traders on how they do these adjustments
.
Thanks raj bro for opening this thread....We all request DAN BRO,COLUMBUS,ANANTH and other OPTION experts visit this thread and share their views and advices.....it will help a lot ....:)
 

gkpc

Well-Known Member
#8
Excellent Raj bhai for this new thread...

In first point You said SELL NIFTY NEAR 6100 , Is it future or spot..

Pls clarify...
Though RAJ has very specifically mentioned that all values shall be that of SPOT.... maybe he meant it for stocks only, but would be good if he clearly specifies that its SPOT also for Indices, i.e. Nifty , Bank Nifty etc.
 

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