In Trading, a Winning Trading Strategy is Everything.
It is ridiculous to even think that anyone will be even wanting to share their winning strategy for a measly Rs.10,000.
3 Likes
For me, the best trading strategy suitable for most market conditions is a CREDIT SPREAD. We know how much we will lose, & how much we can gain. Credit spreads isn’t ideal strategy during strong trending months. Rest of the time, it is a great strategy. Of course, this is NOT an Investors’ strategy.
1 Like
I collect liquid stocks at a price that is close to a good demand level indicated by one or two long bullish candles following one or two very small candles. I wait for the price to retest the level near the open price of the long candle. I keep buying them at every dip till there are enough numbers to make one/two lots.
Once there are stocks to form 1/2 lots, I sell 1/2 call option of higher strike price than what I bought them for. Either it will give me the option money (if price goes down) or the profit (being the difference of call option and the price I bought them for). If the price of stock keep going up, I keep raising strike price of call option booking small loss each time planning it to be offset by higher/certain gain at expiry.
Example: LTP Asian Paint 28th Jun: 980.20. Jul 1020 CE is 14.50
Buy stocks Asian Paint 600 at 980.20 (LTP on 28 Jun 16), Sell CE 1020 Jul 16 for 14.50
Either you gain 8700/- of option money on expiry or 23880/- by selling stock and settling option simultaneously at whatever the price above 1020 on expiry.
To prevent loss due to excessive down movement of price, I go for a Bear Put Spread of SP near the price I bought stocks or a Ratio Put Spread (so that I do not loose on premium).
So far it is working. I lost a lot on Options but made almost twice on stocks. Added advantage is that tax on other debt instruments can be offset to some extent by loss in options.
I use this strategy as I am not young enough to go for mathematical strategies and have a decent portfolio from past to offload.
Comments for improving are welcome.
2 Likes
KISS - Keep it simple stupid.
Aim should be simple that, money should make irrespective of the market move.
I don't bother about the market direction.
Don't see any technical chart.
Do not see any business news.
I only trade in nifty, historically if we see in last 10 years, there are only 12-15 times when nifty move more than 9% in either direction
So simply at the beginning of the series I sell 8% down PE and 8% up CE from the current market value, at the end of the series I get full premium.
History tells you that more than 90% time you would be in profit in such case.
Can check monthly Nifty returns @ http://www.investing.com/indices/s-p-cnx-nifty-historical-data
16 Likes
trading strategy to me is mostly intraday either in cash or fno.
I watch the market and taking the trend of the day pick the volume toppers or day gainer/loser and then check the last 3 - 5 days trend line and if i am convinced i do in cash market or else buy a call or put strategy.
i keep a target for the stock and place sell order accordingly. in most of the time the target is achieved intraday or max in 2 days.
I take minimum risk so targets will not be too flashy.
I believe regular income rather than High risk and High Returns.
10000 for my strategy is not even peanuts.
Being positional trader, I Respect my money, Position my trade with very very very simple technical and fundamental analysis technic and Respect my decision. Thats it 
-
I take a look at what the intraday calls are for the day
-
Analyze the stocks (one or many) based on its past week performance
-
Decide the money i would invest and place the order along with stoploss
-
I tell myself not be greedy and impatient unless a short-sell situation arrives.
1 Like
if i suucess that startergy then i share this
My trading strategy is simple ‘buy low , sell high’. I invest mostly in options : index options, FX options ,stock options. Straddle and strangle are my favorites when I don’t want to risk my money. Moving averages is ,I feel, the best way to predict a market’s trend and is quite helpful too. The close of the market is the time when I closely follow the graphs,as it helps to predict the next day’s trend. My buying and selling is mostly based on fundamental analysis . And for FX options: global economic conditions esp. US,UK,Japan,China , then oil prices,gold prices , repo rates …all these play an important role to reach a decision of buy/sell.
4 Likes
The more you understand the traders and investor mind ,the possibility of profit also more,start catching their mind ,not market technical. As long as you have participation and contact in most of open discussion forum ,social contact , stocks media blogs ,broking agent regardless of domestic or international ,the probability of income scale higher. Yes ,start scanning trader & investors brain. .
2 Likes
well the strategy is not to day trade. for a economy like India the blocking of day trading by rbi/sebi on nse bo/co during brexit vote confirms the volatility and manipulation.
the share markets are as good as number of people who know that they are not here to gamble or bet.
india is not a mature economy. for example nilekani stopped paying esops to engineers in 2003-4 for the same qualification ( reason : number of quality engineers were reduced because he had called to govt to increase colleges and admit more and more students with management quota ) . In one step it
- reduced demand for technologically skilled labor
- increased migration / brain drain
- increased the arbitrage and market cap with cheap labor
- increased the job numbers
this would be extremely good strategy in areas like polytechnics, electronic parts manufacturing, garments and other similar small scale industries. but what he did was to remove a whole technology vertical which landed him to work for aadhaar with mongodb which can be considered as a school startup project. Personally he was extremely clever but the impression which he left at such a important level of economy became template for others to follow.
This person along with NRN cannot be compared with likes of Tata , Ambani since their strategies are not applicable into technological sphere, but both applying same strategy shows how post liberal economy worked for America completely drying up technology which is basic element of market cap by lifting capital to labour ratio in any economy.
Now how will this affect strategy of trading.
- As mentioned in beginning I won't get into day trading techniques since its manipulated.
- We cannot confide even in the corporates since their vision is mainly into forex and arbitrage like the lower levels of dalaal street and only the internal circle will have the information who use it again to make maximum profits.
- Safest bet is gold and not even gold ETFs which are paper gold and can be manipulated but that at macro level increases the inequality, real estate, inflation and without people realizing it will be spending on them.
Infact the strategy which wins is to make banker who gave the loan to offender as RBI chief! Overall the strategies wasted on calculating the gains can be best put to build a honest circle who will work out strategies for building ventures in areas which are begging reforms even if it means to take down the present strategies as happened with Brexit.
1 Like
For Intraday , i generally select stocks based on good news about the stocks , company got new order , Decelaration of the dividends , bonus , Selling assets , Selling Subsidary , approval of new drugs.
For Short Term Trading , the stock select based on trends and govt. policies. Ex. GST Will boost FMCG and AUTO Sector. Textile Package will boost Textile stocks , Monsoon will boost rural demand and fertilizer sector , cyclic shares depends on seanson , Sugar Shares , Railway Shares etc.
For Long Term Investment Fundamental Analysis , Good Management , PE , EPS , ROC , ROE , Cash Flow , Important Financials of the company should be seen and Charts.
4 Likes
I have been following a very basic strategy, i call it 3M’S, The order is 1. Mind 2. Money and 3. Method. First is MIND, the most important aspect of trading, as you know it’s a game where there are no retakes and all, once you are in, you are playing with the real money and sooner or later your emotions are going to take the better of it and that’s what paves the way for a WIPE OUT. So what you gonna do about it? answer is simple: you have to accept the fact that you are bound to LOOSE MONEY(not every day is your day dude). Once you do that 50% of the battle is won, you are detaching yourself with the outcome of the trade which will in turn help you make a DECISION, that decision making ability will keep you afloat from drowning in sorrows and anguish( which is next leg of your account wipe out). So accept the fact, the sooner the better(don’t worry you are going to get your share of misery). Second in line is MONEY, everybody enters this arena with a billion dollar dream but no one comes up with a million dollar investment (it’s a bit harsh but its true). People start off small, make big bets and lose their shirt, they repeat this process for a while until they realize it’s not their cup of tea, It should be other way round, start off with big capital and bet small. As mentioned earlier there are going to be draw downs and you got to have capital to deal with it, If your block buster trade is on and you don’t have enough money in your account to take it then its an opportunity gone begging and all you gonna end up with is agony of what if. As a famous trader once said its not about how much you loose when you are in a bad trade its all about how much you make when you are in a good trade. Bottom line is it’s a game of averages, so start off with a good capital. Third in line is Method, actually there are two aspect to it. One is fundamental(supply and demand) and other is technical(support and resistance(absolute nonsense, but you need it because of herd mentality)). You need to struck the right balance between the two in order to find your holy grail. One important thing is you need to do your due diligence before taking a trade, for example what markets you are trading in, what factors are affecting it and how much you are risking and what is your rate of return. Don’t run after the trades, be patient let the trade come to you and trade to live another day. One more important note “THE MARKET CAN REMAIN IRRATIONAL LONGER THAN YOU CAN REMAIN SOLVENT”. Market are there to run you off your position, do your do diligence, profits are only made when you sit through the trade(eating like ants and crapping like elephants strategy will not work). Finally all the best and good luck(because you will be needing all the luck that this world has to offer for you to be successful).
3 Likes
At the beginning, before defining my trading system / strategy / entry exit setup – I gave my self certain targets – that are:
Deploy a holistic approach that finds the underlying powerful turning points in a chaotic pool of data.
No Wave Counting / No Wedges / No trend-lines / No Flags …. And strictly No commoditized signals / indicators - are allowed.
Such Algorithm must be easily programmable & Truly Scalable. Ensuring orderly behavior of an Automated Mechanized trading system across multiple asset classes – globally - 24 x 7
To support seamless performance by trade engines – robots in real time trade. Its' not about HFT - But to catch the swings at the right point.
So, once I know what I want – the search for finding an edge started…
Here, I wish to share with you – over view of one of my positional trading – system – on Nifty
In put data - OHLC… nothing else…
These input data will undergo 4 different types of process – before getting the out put.
It constantly Identifies the continuous connectivity in a chaotic environment and find the convergence of periodic orbits.
First and Second processes are about eliminating unnecessary market noises… to get a compact and crisp out put.
Third process is about deriving mean point - based on which all entry / exit levels are derived.
Fourth process is getting exact entry / exit levels.
These Entry and Exit levels which are rightfully / logically defined ….. and lets us see the results.
Only one sample – chart is published here ---- Positional trade setup on Nifty – April’16 futures contract
However, if you are interested – you can have / witness the results on last 14 month / contracts. It is there in my google drive - the link is here:
https://drive.google.com/file/d/0B2U54dlvs5nIckF4NHhmU1phc2M/view?usp=sharing
Also I wish to display – the performance review of same trading setup / system on Nifty June’16 futures contract - Intra day trade basis….
Editing - 01-07-2016 - 22.18 hrs --- Wish to Include - One more strategy / Trading system - for intraday trades:
Here, the algo generates important trade-able levels - based on historical OHLC data only.
As the entry / exit levels are pre-determined - during live trading sessions the trader will have a clear cut & Unambiguous view as to what to do... This system can also be machanized for Robot auto trade. At present trades are done manually as per entry / exit levels and I used to wait for the price action comes nearer to the level while entering, if there is gap up / gap down during opening session. I prefer One minute or lesser time frame and 50 % of the trades are closed when it hits 0.1% profits from the entry level (for currency) and 0.25 % for indices and the balance for the next target level. And the price point where 50% trades are booked would automatically becomes TSL in such case.
Screen shot of some portion of my algo (AFL ) - is presented here.
July 2016 USDINR - futures contract intraday chart - Plotted with intraday trade-able levels.
USDINR - Dec'15 & Jan'16 futures contract - intraday chart - 15min candles.... This is given only for having a birds eyeview / example purpose.... I prefer one min or lesser time frame while trading realtime.
Wish you all Happy and Safe Trading.
13 Likes
I
i use heckyl 15 min chart which gives me details how many new contract has been created or squarred off in 15 min duration.if squarred off count is low and continious short/long position are created.i sell call/put options.I have earned 10% today by shoting calls
3 Likes
Dont blindly follow free tips/advice. Tips are free but investment is money. Do some analysis before putting your money. Get to know what company is doing, what is their business model, how much growth they have, What is future plans, how much debt they have, how much dividend they give. So study their balance sheet or finance reports and invest.
3 Likes
my strategy is very simple. find out 52 week low or near 52 low company that have good outlook and buy only a small portion. add more if its go future. ones its give a reasonable return book profit.
2 Likes
Trading strategy …Haha , there is only one strategy that rules i.e to get profit no matter whatever logic you apply,but that’s an ideal stage, frankly speaking want that 10000 bucks so that I can use it to implement in a new strategy and even if I fail wont have a nightmare. I am just being honest.
1 Like
Overview of my Trading System :
' Jean Pair Trading System ' - An Intraday System based on Mean Reversion.
I use this simple System for trading pairs on highly co-related stocks.
Entry & Exits are made using Moving Averages and based on Volatility & Price locations.
Pairs I trade : TM & TM-DVR, RInfra & RCap
A screenshot is attached below:
1 Like