Trading Plans.....Open to All
- Thread starter mrktmstr
- Start date
- Tags banknifty bankniftyfutures future nifty niftyfutures
Hi
I also try other set up but almost same style... my main confusion is book profit at fix points means in nifty 170-200 points because some time we are that level but we follow system and atlast got loss or minimum points... are u back test your system on this logic??? Please give your expert advice...
Regards....
I also try other set up but almost same style... my main confusion is book profit at fix points means in nifty 170-200 points because some time we are that level but we follow system and atlast got loss or minimum points... are u back test your system on this logic??? Please give your expert advice...
Regards....
The thread owner's idea is definitely out of box thinking. Unfortunately, he has not studied all the scenarios before posting it here.
If he is still active, here are my suggestions to improve it.
Follow any trend following AFL. When a buy signal comes, buy current month future and immediately hedge it with next month ATM put. Have a target in mind say for example, 200 nifty points. When futures meet, the target get out with both positions. But instead, the market drops, there will a short signal gets generated. Go short, next month futures with far month call hedging. (Mind you we have not squared off the long futures position and its hedge when the nifty drops). If the short, hits your target exit short futures and its hedge. Then you roll down hedge of buy position to current ATM. If nifty keeps falling without reversing, keep rolling down your hedge until market reverses and hits your newly calculated profit target on buy side.
This way even if Nifty falls by 3000 points without reversal signal, we could bring the cost of buy position by 1500 points down from its original position. If Nifty drops from 8000 to 5000, your original target being 8200, now the revised buy target becomes 6700. But in reality, Nifty never moved 3000 points with a single signal in 1 Hour timeframe or daily timeframe with any trend following AFL.
This method requires you to keep the long term expiry of puts/calls so that you donot get caught in Theta erosion....
Above suggestion is given by Mr Suri ji.. in another thread...
What you think related to your trading... shall we use same??? What your experience says??
Regards...
If he is still active, here are my suggestions to improve it.
Follow any trend following AFL. When a buy signal comes, buy current month future and immediately hedge it with next month ATM put. Have a target in mind say for example, 200 nifty points. When futures meet, the target get out with both positions. But instead, the market drops, there will a short signal gets generated. Go short, next month futures with far month call hedging. (Mind you we have not squared off the long futures position and its hedge when the nifty drops). If the short, hits your target exit short futures and its hedge. Then you roll down hedge of buy position to current ATM. If nifty keeps falling without reversing, keep rolling down your hedge until market reverses and hits your newly calculated profit target on buy side.
This way even if Nifty falls by 3000 points without reversal signal, we could bring the cost of buy position by 1500 points down from its original position. If Nifty drops from 8000 to 5000, your original target being 8200, now the revised buy target becomes 6700. But in reality, Nifty never moved 3000 points with a single signal in 1 Hour timeframe or daily timeframe with any trend following AFL.
This method requires you to keep the long term expiry of puts/calls so that you donot get caught in Theta erosion....
Above suggestion is given by Mr Suri ji.. in another thread...
What you think related to your trading... shall we use same??? What your experience says??
Regards...
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