Scaling Up Your Trading Business

[Nikhil Dogra]

Here is the overview of my execution strategies.

Strategies -

1. Writing Bi-Weekly Bank Nifty Option Spread (Relative Value Arbitrage Positional Hold)

We will position our self using weekly options after market analysis which i have highlighted earlier in the thread. This is a "Long-Only" strategy using put credit spread.

• We will use 20 day one standard deviation to select the strikes. Bank nifty is 24900 & 20 day one standard deviation is 300 points then we will implement either 24600 put or 25200 call in case we are bearish [In case someone wants to express a bearish view using weekly]
  
• We establish position in the new trading week i.e. for example if we don't have any position.
  
• On 25th Sept we will establish our position using 5th Oct contract (Ideal) OR On 25th Sept we will establish our position using 28th Sept contract (If 5th Oct contract is illiquid)
  
• On 28th Sep contract expiry we will exit the position

Here is an example of a bearish call spread [We will be Long Only however i chose Short Call Spread as a example]

 

[Nikhil Dogra]

Here is the overview of my execution strategies.

Strategies -

1. Nifty Option Writing (Directional Intra Day)

Here is the third and final strategy which we will be executing. We will be taking a cue from previous days volume profile distribution to determine the probability of a new trend for the day i.e. Price above previous day volume distribution high signals presence of other timeframe participants who have the financial power to establish one sided bullish orderflow and vice versa for price below previous day volume distribution low.

Today is a perfect example of other timeframe market participants taking prices to a "new" value area range 10130-10095 from previous value area range 10185-10155.

 

[Nikhil Dogra]

Finally everything about what i will do is explained in detail in these threads and now i will wait for 29th September 2017 to trade October contracts Rest i may not trade 4th to 6th October due to some work in regards to North India's Largest Algo Trader Meetup Event we are organizing in Chandigarh on 7th October.

Conclusion:-

1. We start trading on 29th September 2017
2. Hardcore trading starts post 9th October 2017

Cheers!

 

[Nikhil Dogra]

My market analysis is pretty straight forward. I use average directional index to determine whether the market environment is mean reverting or exhibiting trendy properties, the exponential moving averages i use are 20 day and 50 day and finally i use commodity channel index as a guide to buy low/sell high.

Two ways i analyze the markets-

1. If ADX20 >20 then EMA20 & EMA50 cross determines the trend and CCI5 is used to buy low/sell high within the established trend.
2. If ADX20 <20 then EMA20 & EMA50 cross relevance decreases and CCI20 is used to buy low/sell high within the "potential" mean reverting cyclical environment.

View attachment 22359

The analysis method described in earlier posts is geared more towards mean reversion trading within trends (EMA 20 & EMA 50 crosses) & finding choppy markets to capitalize extremes i.e fading prices . Now here is analysis method which i use purely for deciphering trend. It uses bollinger bands :-
Uptrend = Price Close > 20 SMA 1 Standard Deviation
Downtrend = Price Close < 20 SMA 1 Standard Deviation

 

[Nikhil Dogra]

Are we at a potential double top ?

 

[Nikhil Dogra]

Here is a preview of my trade prepration for the next trading day.

Pivot - 9880
Above 9880 i will look for buy side orderflow, we may attempt to trade at 9970 provided we sustain above 9920.
Below 9880 i will look for sell side orderflow, we may attempt to trade at 9762 - 9804 provided we sustain below 9840.

 

[Nikhil Dogra]

Here are the websites i use for information -

• https://in.investing.com/
• http://www.moneycontrol.com/
• http://www.kitco.com/
• https://www.nseindia.com/
• http://www.bseindia.com/
• https://www.mcxindia.com/

Pivot - 9856
Above 9856 we will attempt to trade at 9904 /9926/9954
Below 9856 we will attempt to trade at 9825/9803/9775

 

[Nikhil Dogra]

View attachment 22539


Here is a preview of my trade prepration for the next trading day.

Pivot - 9880
Above 9880 i will look for buy side orderflow, we may attempt to trade at 9970 provided we sustain above 9920.
Below 9880 i will look for sell side orderflow, we may attempt to trade at 9762 - 9804 provided we sustain below 9840.

Here is how today panned out viz-a-viz yesterday's level

 

[msa5678]

Here are the websites i use for information -

• https://in.investing.com/
• http://www.moneycontrol.com/
• http://www.kitco.com/
• https://www.nseindia.com/
• http://www.bseindia.com/
• https://www.mcxindia.com/

View attachment 22569


Pivot - 9856
Above 9856 we will attempt to trade at 9904 /9926/9954
Below 9856 we will attempt to trade at 9825/9803/9775

Any trades today?

Sent from my SM-G610F using Tapatalk

 

[Nikhil Dogra]

Any trades today?

Sent from my SM-G610F using Tapatalk

Yes but in my main trading a/c not in the a/c which i have opened for this thread [I have created a new a/c where i will trade specially for this thread]

What i will be sharing here would be

• Homework for the next trading day
  
• Mid Afternoon Update
• Trading diary showcasing the executed trades along with screenshots of orderbook/p$l
• What can be improved/what i did well etc.