Trading Daily Timeframe

gunsho

Well-Known Member
#1
Kindly note its mainly about execution and trade/risk management.

For positional, if we have daily timeframe as the trading timeframe, future alone is not a feasible option for people with 4 lots or so, as SL we may have at 200/300 points also. There are few more threads in TJ, where different levels are posted on daily timeframe basis and Sl may be 300+ also. With huge capital, that is not a problem. And shorting rally and buying dips may be efficient with 20-40 lots. With 4 lots, we mostly end up taking the trade at first shot :) Listed below are few options I could think of. Appreciate any comments on this.

  • Option Spreads
    Very low risk, you can forget about the positions, as risk is much limited. Profit is also limited. Time decay won't be a big problem. We can take near OTM pair itself.
    We will get about 40-50 points on 300 point move. And if we keep rolling over to next higher pair.. on daily timeframe, if we catch a 1000 point move, we may get anywhere between 200-300 points or so. Once in a year, we get about 2-3 such good moves. Rest all the times, we keep losing 20 points or so.​
    [*]Naked OTM options
    Limited risk. Its just the premium that we risk. We will end up taking little far OTM options (200-300 away from current price). Time decay can kill here. If you long when NF is at 6000, using 6300 CE and it expires at 6200, still we lose, though trade is 200+ from entry.
    Advantage, on good moves, we will good returns. RR will be very nice in this execution.
    Naked ATM didn't considered as time decay will hurt most here.
    [*]Futures + Hedged options
    Take trade in futures and hege with ATM options. Here, its more of insurance. But I have not done this in realtime, so not clear on the +/- practically. Theory wise, insurance cost is there. and when VIX is high, premium will be high. When it comes down, future will lose more points than the put gains.
    Advantage, risk is limited, but more than above two options. Profit is unlimited and easy to manage, as once trade is in good shape, no need to buy further insurance.​
    [*]Timing it in lower timeframe
    This seems to be better in theory, though have not done in practical. daily timeframe as trading timeframe 15/30 mins as timing. Entry is on daily basis, but keep 30 mins timeframe Sl for the trade. Only futures. No hedging. Gaps can affect, but law of average will take care, as on good trades we tend to keep entire points.
    Advantage is plain futures trade.. disadvantage, u need to spend more time in market, and more trades, ideally beats the purpose of daily timeframe :) This may show great RR.

To be honest I feel, each choice has got their own +/- and doing any one of them consistently is good, so can't think clear if any one of them have specific edge. I use to do option spreads first, and as of now doing Naked OTM options. With more knowledgeable people, thought its best idea to post in TJ to hear more comments.

Are there any other better way to take trades on daily timeframe, with good RR?

When it comes to system, it can be anything. based on TDST or weekly high low or pivots on daily. Success rate is high in daily timeframe. And relaxed way. But holding just futures is not relaxed particularly when u know Sl is 200/300 points away (atleast to me at this point ;) ).
 
#2
have limited knowledge,but read many threads in traderji, so will pass my comments. spreads seems to be the low risk, limited profit for any lazy trading. aw10's thread has great information on the same. timing in 15/30 mins will be the next ideal setup. its worth doing, as once u r in a move you just giong to trail sl. this seems to be great per my knowledge. haven't seen any responses form seniors or others... so either the question is not great or mostly you have listed all possible options there, so noone has answers further :lol: tx for thoughts. share with us if you have found one good?
 

gunsho

Well-Known Member
#3
have limited knowledge,but read many threads in traderji, so will pass my comments. spreads seems to be the low risk, limited profit for any lazy trading. aw10's thread has great information on the same. timing in 15/30 mins will be the next ideal setup. its worth doing, as once u r in a move you just giong to trail sl. this seems to be great per my knowledge. haven't seen any responses form seniors or others... so either the question is not great or mostly you have listed all possible options there, so noone has answers further :lol: tx for thoughts. share with us if you have found one good?
:) I guess there is not much options/answers available.

Yes. I am (most of people in TJ) aware of AW10's thread. Spreads is what I used to do before. That suits while in job and didn't have much time to watch charts. Since I do day trading anyway, I decided to time it in lower timeframe and trail on higher timeframe. There is no easy money ;)
 

Gaur_Krishna

Well-Known Member
#4
Good analysis.

One great advantage for Daily TF or for that matter any higher TF (even 60 min) is that we have less trades and so less number of trades going wrong. In such scenarios, its easier to curtail th elosses and let the profits run of winning trades.

Regards,
Gaur_Krishna

Kindly note its mainly about execution and trade/risk management.

For positional, if we have daily timeframe as the trading timeframe, future alone is not a feasible option for people with 4 lots or so, as SL we may have at 200/300 points also. There are few more threads in TJ, where different levels are posted on daily timeframe basis and Sl may be 300+ also. With huge capital, that is not a problem. And shorting rally and buying dips may be efficient with 20-40 lots. With 4 lots, we mostly end up taking the trade at first shot :) Listed below are few options I could think of. Appreciate any comments on this.

  • Option Spreads
    Very low risk, you can forget about the positions, as risk is much limited. Profit is also limited. Time decay won't be a big problem. We can take near OTM pair itself.
    We will get about 40-50 points on 300 point move. And if we keep rolling over to next higher pair.. on daily timeframe, if we catch a 1000 point move, we may get anywhere between 200-300 points or so. Once in a year, we get about 2-3 such good moves. Rest all the times, we keep losing 20 points or so.​
    [*]Naked OTM options
    Limited risk. Its just the premium that we risk. We will end up taking little far OTM options (200-300 away from current price). Time decay can kill here. If you long when NF is at 6000, using 6300 CE and it expires at 6200, still we lose, though trade is 200+ from entry.
    Advantage, on good moves, we will good returns. RR will be very nice in this execution.
    Naked ATM didn't considered as time decay will hurt most here.
    [*]Futures + Hedged options
    Take trade in futures and hege with ATM options. Here, its more of insurance. But I have not done this in realtime, so not clear on the +/- practically. Theory wise, insurance cost is there. and when VIX is high, premium will be high. When it comes down, future will lose more points than the put gains.
    Advantage, risk is limited, but more than above two options. Profit is unlimited and easy to manage, as once trade is in good shape, no need to buy further insurance.​
    [*]Timing it in lower timeframe
    This seems to be better in theory, though have not done in practical. daily timeframe as trading timeframe 15/30 mins as timing. Entry is on daily basis, but keep 30 mins timeframe Sl for the trade. Only futures. No hedging. Gaps can affect, but law of average will take care, as on good trades we tend to keep entire points.
    Advantage is plain futures trade.. disadvantage, u need to spend more time in market, and more trades, ideally beats the purpose of daily timeframe :) This may show great RR.

To be honest I feel, each choice has got their own +/- and doing any one of them consistently is good, so can't think clear if any one of them have specific edge. I use to do option spreads first, and as of now doing Naked OTM options. With more knowledgeable people, thought its best idea to post in TJ to hear more comments.

Are there any other better way to take trades on daily timeframe, with good RR?

When it comes to system, it can be anything. based on TDST or weekly high low or pivots on daily. Success rate is high in daily timeframe. And relaxed way. But holding just futures is not relaxed particularly when u know Sl is 200/300 points away (atleast to me at this point ;) ).
 

gunsho

Well-Known Member
#6
Good analysis.

One great advantage for Daily TF or for that matter any higher TF (even 60 min) is that we have less trades and so less number of trades going wrong. In such scenarios, its easier to curtail th elosses and let the profits run of winning trades.

Regards,
Gaur_Krishna
True GK :). But anything less than Daily TF, you know I am happy with what I am doing right now ;)

Looks like there is no easy money :cool:
 

Purushotham

Well-Known Member
#7
I follow this sys and it gives good return with less headache

time frame daily
ema -10
entry - long +10 ema value - sl -20 ema value
short - 10 ema value - sl +20 ema value
with 2 lots one can generate about 10,000 pm
Please do explain in detail if possible with charts....

entry - long +10 ema value - sl -20 ema value

it means entry is adding plus 10 to 10ema value and SL minus 20 to 20ema value..

Is this strategy is for NIFTY only or we use for stock fut also..
 

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