USDINR Trading by a Bank trader

[av1428]

I see very little information being shared on internet about USDINR currency futures trading.
Whatever little info is there on internet, that also focusses on just directional trading on USDINR.
how many people here know that calendar spreads trading is very profitable in USDINR. It requires very little margin and can get good returns to investors.
Also, there a few very simple directional strategies which generate regular income.

I will share all my knowledge here in this thread, if there is any interest and if you ask me questions. Else, the thread will die.

Oh.. I almost forgot to introduce myself. I am a forex trader with one of the top 3 banks in the world with over 6 years of experience. Trading - is what I do for my living and only thing I know.

I will share my simple strategies to trade USDINR futures, calendar spreads and options.

So, please start asking me questions.

Hi Thanks a ton for coming forward to share your experience...
I've got few querries on this topic....
1. can we open an account with any brokers abroad or thier branchs at india? or is it only with the ones associated with NSE?
2. Whats the market timings?
3. Whats the average brokerage?
4. is it legal to trade other currencies?

 

[poortrader]

image hosting

This is a 2hourly chart of USDINR from NSE, here I have marked events occuring at tdst lines, breakdown failures etc.
@ Pipper, can you mark how you will trade this chart on 2 hourly time frame?
Waiting for your valuable contribution

Hello friends

I sincerely hope that you guys tested the 2 hourly chart breakouts. Also, please use the exact charts of the instrument that you are trading.
Since I am using bloomberg terminal only, I am not aware where the retail traders can access the NSE charts live. I request any other experienced member to guide.

Regarding trading options. I do a lot of gamma scalping in USDINR. But I won't go into details and not explain this. This is because retail traders should avoid doing it because of very large transaction costs that will make it unprofitable in long run.

Ok, here is one more hint to trade USDINR. If you jusy enter into the direction of breakout in 15 min charts bollinger band, you will win 40% of the time and the winners would be 2.5 the losers on average.

 

[arm239]

Hi
I want to trade currency. Which strategy will be better. Can u please let me know about calander spread strategy? Thanks in advance.
Regards
M.Anantha Raman

I see very little information being shared on internet about USDINR currency futures trading.
Whatever little info is there on internet, that also focusses on just directional trading on USDINR.
how many people here know that calendar spreads trading is very profitable in USDINR. It requires very little margin and can get good returns to investors.
Also, there a few very simple directional strategies which generate regular income.

I will share all my knowledge here in this thread, if there is any interest and if you ask me questions. Else, the thread will die.

Oh.. I almost forgot to introduce myself. I am a forex trader with one of the top 3 banks in the world with over 6 years of experience. Trading - is what I do for my living and only thing I know.

I will share my simple strategies to trade USDINR futures, calendar spreads and options.

So, please start asking me questions.

 

[raj_velayudhan]

Re: USDINR Trading by a Bank trader
Sir
Could you please explain this strategy of
"Sell the 2mnth over 1 mnth spread if its above 28 after the 20th of the month" with an example.
What does 'if its above 28 mean'?
raj_velayudhan

 

[ecoven]

Hi Jack,

I am a newbie and been on USDINR(and some times JPYINR) full time trades over 3 months so far. I am stuck with intraday vs weekly profits made.

here is a example for a weekly trade that i've been on:

Day 1(chosen over a anticipated low over previous week): Entered trade at Day's low.
Day 2: Closed lower than day 1.
Day 3: Closed higher than day 2.
Day 4: Closed lower than day 3.
Day 5: Exited trade.

67.14(entered) -> 67.05 -> 67.32 -> 67.26 -> 67.16(exited) - Broker earns more than me. My system currently encourages Intraday than weekly

Finding low and high on a intraday has been profitable to me . I would like to know how to determine a weekly profitable entry/exit points, hints should be okay. Currently trading with Zerodha last week on wards after costly brokerage experience with Edelwiess.

 

[NJ23]

Hi Jack,

I am a newbie and been on USDINR(and some times JPYINR) full time trades over 3 months so far. I am stuck with intraday vs weekly profits made.

here is a example for a weekly trade that i've been on:

Day 1(chosen over a anticipated low over previous week): Entered trade at Day's low.
Day 2: Closed lower than day 1.
Day 3: Closed higher than day 2.
Day 4: Closed lower than day 3.
Day 5: Exited trade.

67.14(entered) -> 67.05 -> 67.32 -> 67.26 -> 67.16(exited) - Broker earns more than me. My system currently encourages Intraday than weekly

Finding low and high on a intraday has been profitable to me . I would like to know how to determine a weekly profitable entry/exit points, hints should be okay. Currently trading with Zerodha last week on wards after costly brokerage experience with Edelwiess.

Haha! There there. Okay. USD is one of the hardest markets to trade, so don't beat yourself up. I don't think one should be trading JPY/EUR/GBP. Those are illiquid on Indian Exchanges.

You can do some research and find exit methods that you are comfortable with. Short(very) term strategies work well with USD. So, smaller timeframes, quicker exits are a way to go. At least that's been the case with my strategies.

 

[Obelixtrader]

Hi Jack,

I am a newbie and been on USDINR(and some times JPYINR) full time trades over 3 months so far. I am stuck with intraday vs weekly profits made.

here is a example for a weekly trade that i've been on:

Day 1(chosen over a anticipated low over previous week): Entered trade at Day's low.
Day 2: Closed lower than day 1.
Day 3: Closed higher than day 2.
Day 4: Closed lower than day 3.
Day 5: Exited trade.

67.14(entered) -> 67.05 -> 67.32 -> 67.26 -> 67.16(exited) - Broker earns more than me. My system currently encourages Intraday than weekly

Finding low and high on a intraday has been profitable to me . I would like to know how to determine a weekly profitable entry/exit points, hints should be okay. Currently trading with Zerodha last week on wards after costly brokerage experience with Edelwiess.

Your country has too may taxes thats the broblem.
exchanges charges+ sebi charges should be enough. But what KILLS trading in India is Stamp Duty,STT and Service Tax.

 

[ecoven]

@NJ23 - Thanks, Like you said Intraday with USDINR has been wiser for me so far. What's the problem when JPY/GBP/EUR are illliquid, they still give good chances for scalping and over-night(BREXIT being exception for GBPINR). I mean what's wrong when few people trading them and low volumes?

@Obelixtrader - Damn right, Too much got flushed with Edelwiess and ICICI Direct. I pledged to make it up with discount brokers from now on.

 

[NJ23]

@NJ23 - Thanks, Like you said Intraday with USDINR has been wiser for me so far. What's the problem when JPY/GBP/EUR are illliquid, they still give good chances for scalping and over-night(BREXIT being exception for GBPINR). I mean what's wrong when few people trading them and low volumes?

@Obelixtrader - Damn right, Too much got flushed with Edelwiess and ICICI Direct. I pledged to make it up with discount brokers from now on.

Ah! Well, right now you're small. When your capital grows bigger, you'll see partially executed trades and/or slippages. That'll reduce your profitability quite a lot. Something that's working on them(Non-USD Pairs) right now would stop working. So, IMO it's better not to waste time trading them. Learn and trade USD only.