Simple way to make 100 Nifty points a month (low risk)
- Thread starter pos_trader
- Start date
- Tags short gut
@Bane
This strategy is not to be implemented blindly. I track news flow, events, overall environment which affect Nifty trend in near term (read 20 days). After that I look at statistical data (option chain on NSE website) and then use my judgement to take positions.
Having said that --- the positions may still run into losses. I have made my calculations based on 2 losses and 10 profit situations in a block of 12 months and am hoping to make 60% to 80% p.a. return on capital employed.
(in most part of 2014 the uptrend of Nifty could be sensed and now sideways move can be sensed. I think Nifty will remain in range 7800 to 8600 till end of Aug).
pos_trader
This strategy is not to be implemented blindly. I track news flow, events, overall environment which affect Nifty trend in near term (read 20 days). After that I look at statistical data (option chain on NSE website) and then use my judgement to take positions.
Having said that --- the positions may still run into losses. I have made my calculations based on 2 losses and 10 profit situations in a block of 12 months and am hoping to make 60% to 80% p.a. return on capital employed.
(in most part of 2014 the uptrend of Nifty could be sensed and now sideways move can be sensed. I think Nifty will remain in range 7800 to 8600 till end of Aug).
pos_trader
I have traded this concept...in some other way....
On Expiry Day - i use to add up the premium of call and Put of Nifty next month - if premium is above 260, then i will sell....(if premium is below 230...i will definitely skip).
Last month 8300 call + put -
Call 8300 - premium 160.90 .......
Put 8300 - premium 140.90 ........
Total 301.80
My s/l upside is 8319 + 301 = 8620
If nifty crosses 8620, again i will sell 2 lot extra put and hold call option, premium near 80 range to protect gapup.
My s/l upside is 8319 - 301 = 8018,
If nifty crosses below 8018, again i will sell 2 lot extra call option premium near 80 range to protect gapdown..
In 2008 and 2009...this strategy has given good return (if you have traded in the election event month also).....you can backtest 2008...you will wonder.
But, onething is...you should do it everymonth..then only this strategy will generat profit YoY...
Doing one month (if you incur loss) and skip..then...this may not suits....
On Expiry Day - i use to add up the premium of call and Put of Nifty next month - if premium is above 260, then i will sell....(if premium is below 230...i will definitely skip).
Last month 8300 call + put -
Call 8300 - premium 160.90 .......
Put 8300 - premium 140.90 ........
Total 301.80
My s/l upside is 8319 + 301 = 8620
If nifty crosses 8620, again i will sell 2 lot extra put and hold call option, premium near 80 range to protect gapup.
My s/l upside is 8319 - 301 = 8018,
If nifty crosses below 8018, again i will sell 2 lot extra call option premium near 80 range to protect gapdown..
In 2008 and 2009...this strategy has given good return (if you have traded in the election event month also).....you can backtest 2008...you will wonder.
But, onething is...you should do it everymonth..then only this strategy will generat profit YoY...
Doing one month (if you incur loss) and skip..then...this may not suits....
Uh thats not even 5 % / month. some people feel less than 5 is poor.
Some maths for time pass. at 43%
start :100
year 1 end: 143
reinvest:143
year 2 end: 204.49
reinvest :204.49
year 3 end: 292.42
reinvest : 292.42
year 4 end: 418.16
reinvest : 418.16
year 5 end : 597.97
reinvest : 597.97
year 6 end : 855.10
You just made 853 bugs from Rs 100 in last 6 years. I would be happy with that.
Some maths for time pass. at 43%
start :100
year 1 end: 143
reinvest:143
year 2 end: 204.49
reinvest :204.49
year 3 end: 292.42
reinvest : 292.42
year 4 end: 418.16
reinvest : 418.16
year 5 end : 597.97
reinvest : 597.97
year 6 end : 855.10
You just made 853 bugs from Rs 100 in last 6 years. I would be happy with that.
Last edited:
Just an article on MM and compounding.
http://www.learntotradethemarket.co...-dont-use-the-2-percent-money-management-rule
http://www.learntotradethemarket.co...-dont-use-the-2-percent-money-management-rule
Agreed....but, problem with everyone is....not even wait for 10 minutes to market react...where is the question of waiting for years...to multiply money..
Hence, i told, patience only multiply your money...
Imagine, if anyone is going short as per this strategy..i am telling you, no one will wait even 2 or 3 days...they are ready to lose or book minimum profit...but, don't want eat the entire profit......because, everybody wants to trade each and every moment...otherwise, they feel they are missing the opportunity...
Less trade always fruitful...but, i feel nobody accepts...
Hence, i told, patience only multiply your money...
Imagine, if anyone is going short as per this strategy..i am telling you, no one will wait even 2 or 3 days...they are ready to lose or book minimum profit...but, don't want eat the entire profit......because, everybody wants to trade each and every moment...otherwise, they feel they are missing the opportunity...
Less trade always fruitful...but, i feel nobody accepts...
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