Trading for Living -- Successfully Completed one year as Full Time Trader

[mycall]

That luck would soon runout though and would lead to even greater losses. Personally i think delta management is one of the most efficient and objective ways to adjust position which gives you a clear mind. Other is taking a view of the market but the cons of it are that it is subjective and therefore speculative.

To me current level was expected when 28000 was broken... it was 5th hit... range height is the normal target when a long term range breaks... it was 400pts range... so spot was expected to reach 27600-27500

 

[amrutham]

Entered into below NF position for Sept expiry.

NF Spot @ 11670

Buy NF 11700 PE 450 Qty @ 128
Sell NF 11600 PE 450 Qty @ 92
Sell NF 11300 PE 450 Qty @ 35

Net Debit = 450

Planning to hold it, until NF breaks 11500 on downside.

Made adjustment to this position.

NF Spot @ 11490

Buy NF 11300 PE 225 Qty @ 63
Sell NF 11700 CE 225 Qty @ 63

Outstanding position.

Buy NF 11700 PE 450 Qty
Sell NF 11600 PE 450 Qty

Sell NF 11300 PE 225 Qty
Sell NF 11700 CE 225 Qty

Net debit = 450

 

[jyotixxx]

All orders placed going as open pending and getting rejected. Seriously disgusting

 

[anildnr]

Entered into below NF position for Sept expiry.

NF Spot @ 11670

Buy NF 11700 PE 450 Qty @ 128
Sell NF 11600 PE 450 Qty @ 92
Sell NF 11300 PE 450 Qty @ 35

Net Debit = 450

Planning to hold it, until NF breaks 11500 on downside.

Hi amrutham..this position is safe until nifty breaks 11200..right. at this point only ur values will be 500 400 and 100. Why u are trying to adjust if nifty breaks 11500... am i missing anything in this calculation??

 

[amrutham]

Hi amrutham..this position is safe until nifty breaks 11200..right. at this point only ur values will be 500 400 and 100. Why u are trying to adjust if nifty breaks 11500... am i missing anything in this calculation??

Since we are still in the first week of the series, I did not want to take chance. If NF starts trading above 11500, then I will readjust the position to original one.

If it is the last/third week of the series, the time value would be negligible and I would have kept the position until 11200 is broken.

 

[superman]

Todays movement was crazy !! But is nothing compared to 2008-2009 ,,

@amrutham: Do you have experience trading at that time(2008-2009) ? Anytime you have blown your account or you were always profitable trader like this ?

 

[amrutham]

Todays movement was crazy !! But is nothing compared to 2008-2009 ,,

@amrutham: Do you have experience trading at that time(2008-2009) ? Anytime you have blown your account or you were always profitable trader like this ?

I started my trading after 2008-2009 crash, and luckily not blown any account till now. Initial few years, I was only buying NF options and it was mostly break-even year-wise.

Only after shifting to Z and started option writing, I became profitable.

With reasonable amount of capital and conservative approach, I think we can make small profits consistently.

 

[mycall]

I started my trading after 2008-2009 crash, and luckily not blown any account till now. Initial few years, I was only buying NF options and it was mostly break-even year-wise.

Only after shifting to Z and started option writing, I became profitable.

With reasonable amount of capital and conservative approach, I think we can make small profits consistently.

Well said... this is the only survival route in active trading market... you are and will be the primary inspiration to confused traders and people who want to find ways to earn realistic return on investment...

Please keep up the good work and guide TJ's visitors with your knowledge and specially experience...

I started trading in 2009... suzlon and one other mining stock gave me worst nightmare... I was novice then... later I shifted to currency and recovered half of my drawdowns... then I shifted to IronCondor in NF... later shifted to BNF weekly options...

 

[sreperu]

Hi Amrutham,
I find very difficult adjust the positions when my view goes wrong. Suppose in the above example for Nifty, you selected 11700 CE to sell, right, again how do select the right strike price when the view goes wrong. Now nifty is moving positive again you need hedge for 11700 ce right. Please clarify...

 

[amrutham]

Hi Amrutham,
I find very difficult adjust the positions when my view goes wrong. Suppose in the above example for Nifty, you selected 11700 CE to sell, right, again how do select the right strike price when the view goes wrong. Now nifty is moving positive again you need hedge for 11700 ce right. Please clarify...

In case of ratio spreads, I keep the top two legs untouched and keep on adjusting the outer leg as per the market movement.

If we take the current position, Long 11700 PE and Short 11600 PE legs are untouched until this whole position is closed.

The outer leg 11300 PE is adjusted when NF broke 11500.

As part of the adjustment,11700 CE was selected since I expect NF not to break the recent high of 11700 -11800 for this series.

As a rule, I adjust short PE positions immediately and while adjusting short CEs, its generally wait and watch approach.
In the above case, my plan was to revert back the adjustment once NF starts trading above 11500 consistently. Now as it is trading above 11500, I am in wait and watch mode. If it trades positive on Monday also, I will move the 11700 CE short position either to 11300 PE or 11500 PE.