Yes, as per my calculations an upwards move of 1% in NIFTY 50 yeilds almost 10% profit in Futures contract for the margin we trade with. Loss is also same.
More liquid that any other contracts and no operators to rig the prices
People who want to trade in F&O with minimal effort can follow NIFTY 50 alone and can make good profit with lower risk (based on the daily volatility) and lower margin than most of the contracts.
And all the market news is forcasting NIFTY moves so you have a lot of information available from the channels too
Usually on Fridays there would be come profit booking due to weekend and to avoid surprises on Monday. based on the Market view on that you can short next month Future and Square OFF before close.
This you can safely short with out any fear. or You can short OTM Calls if it is one week before Expiry.
and also whenever Nifty goes above RSI of 75 you can try to short and make small profits intraday.
an example of market fall on 7th April 2017 on profit booking. you can use this kind of fall to make profits without exiting your long position.
Thanks for the clarification. Nice Analogy. Especially the OTM call shorting in the last week of expiry works - even @Karthik has explained this in the options module.
Have you used the Futures strategy and if so what is your success ratio?
If you had invested in Nifty April Futures in Dec, you’re assuming Nifty will rise for the subsequent 4 months at least. That’s a tall order. You’ve no idea what’ll happen in the next month, let alone 4 month.
You were lucky this time, had you invested in Nifty Futures in August, seeing past 4 months history, you wouldn’t have made any profit till 7th November, then the shit would’ve hit the fan.
