This way you can trade nifty options

[ford7k]

hi friends
here is a simple relative performance chart. it shows nifty futures and nifty call6200. two ma of rs are superimposed to see clearly if a uptrend or downtrend is in force.

it is self explanatory.nothing to explain .

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Here is chart for niftyfutures and nifty6400PE put option of january.

chart uses 13 tick. data obtained using josh1 tool.
keep two charts side by side and track opportunity.

happy option trading
ford

 

[mukkara99]

good evening ford 7. please elaborate how to use it for other strike prices

 

[ford7k]

Hi
you can use this following code concept to trade options.
YOU NEED 2 CHARTS.
Use Historic volatility IN ONE PANE and NR4 IN LOWER PANE and find opportunities.

//==========================================================
/*
original Code BY  [B]Dennis Skoblar 2005[/B]
The is the [B]6/100 Historical Volotality [/B]Indicator as described in the book "Dave Landry On Swing Trading".
 The stock is poised or [B]ready to move when the 6/100 Indicator reading is Equal to OR below 0.50 (50%)[/B]

Formula:
*/
SetChartBkColor(64);
_SECTION_BEGIN("HVSixOneHundred");
HVSixOneHundred = (StDev(log(C/Ref(C,-1)),6)*100*sqrt(256)) /
(StDev(log(C/Ref(C,-1)),100)*100*sqrt(256));
Plot(HVSixOneHundred,"HV 6/100",colorOrange,styleThick);
_SECTION_END();
Plot(0.5,"0.5",colorYellow,styleLine);
// The stock is poised to move when the 6/100 Indicator reading is Equal to OR below 0.50 (50%)
//USE 15MIN CHART OR EQUIVALENT TICK

you can find NR4 code.

============================================================================================================
A What you should not do?
Dont use this immediately without testing then loose money
B what you should do?
Test it make your ruleset by own observation then re test on old data as well as live data without putting money.
figure out risk limit first
CHOOSE A to loose money fast.
HAPPY OPTIONS TRADING
ford7k

 

[ford7k]

Hi

option traders trading just 1 lot are not clever.

Be prepared to trade at least 3 to 5 lots.
never buy all 5 lots at once.

"AVERAGING UPWARDS " IS a way to make more profits or less losses.

But human is wired to average downwards.it prefers buying as price drops down-trading basics dont support this avg down.

EXAMPLE IN JAN 2014
NIFTY CE 6200 WAS 143. DROPPED TO 125. DROPPED TO 100. DROPPED TO 83.
143-83=60 POINTS DROP
IF YOU HAVE TO AVERAGE DOWNWARDS(though it is wrong technically), BUY 1 LOT EVERY 15 POINTS DROP.
SIMPLE

10 POINT DROP OR 15 POINT DROP OR 20 POINT DROP? STICK TO ONE.SETTING
non ideal way is
average down in a fall(no one knows how deep the well is and if water exists or not)
IDEAL WAY IS
BUY 1 LOT- BUY 2 LOT AFTER FIRST rise up BUY 2 LOT AFTER SECOND rise
BUY 4 LOTS AFTER 3RD rise. IF YOU HAVE FUNDS.
=======================================
1-3-2-1 IS ESTABLISHED BY REAEARCH.
==============================================
1-2-4-8 SURVIVES IF rise(drop) RANGE IS SET RIGHTLY.
PATIENCE-TESTING-PRACTICE -THEN APPLY.
hint
hxxp://www.you tube.com/watch?v=fHv0RFZiqqw
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A Chimpanzee may prefer a shiny glass piece than a dull unpolished diamond.
I gave a diamond.