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Intraday EMA + Supertrend 5 min strategy

Intraday EMA + Supertrend 5 min strategy

Now this strategy is very simple and effective. We need a trending stock or index first not in a range bound.

1. 5 min timeframe

2. Supertrend with setting (5, 1.5)

3. Ema 48 period with High for plotting

4. Ema 48 period with low for plotting

 

Strategy is simple:

 

1. Ema forms a channel, when stock(trending stock not sideways) above channel we look for buy entries and when below we look for sell entries.

2. We only take buy entries when a green candle touches supertrend support line and  above EMA channel.

3. We only take sell entries when red candle tocuhes supertrend  suppport/resistance line and below EMA channel

4. … Read the rest

Increase success rate of ORB 15 Min

 

Increase success rate of ORB 15 Min

  1. Use open high low. If open = low and enter when it crosses high and if open = high then enter when it crosses low.
  2. Use CPR strategy for narrow range cpr stocks and jackpoy cpr stocks for more accuracy.
  3. Selects NR4 or NR7 stocks with inside candle breakout of high and low of NR7 Or NR4 candle with ORB.
  4. Stocks that open above previous day high(buy) or previous day low(sell)
  5. On daily chart if stock is above 10 ema then go for buy side and if less than 10 ema then sell side. (Don’t go against major trend.)
  6. When you select stocks make sure that ADX is more than 40 which
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what is the safest strategy in option trading to earn a 4% profit monthly?

Agenda

Let’s keep it simple, in market there are people who want quick buck and some who would need monthly stable income.

A lot of my friends ask me as to what is the safest strategy in option trading to earn a 4% profit monthly?

I ask them normally what they mean by safest strategy

a) the strategy has a high win probability

b) the strategy is not open to unlimited loss

Now let’s go into details of strategy planning.

It can be called “Max pain iron butterfly plus iron condor strategy” Or simply ” Max iron” ( my own name) in simple terms.

  1. Now we know only option sellers make money consistently and buyers only few big wins. That
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Debit Spreads vs Credit Spread ? Which is best and when ?

Main topics covered today will be

Advantages of debit spread vs credit spread
Advantages of credit spread vs debit spread
Why prefer debit vs credit spread
To know credit vs debit spread-which is better
Who uses credit vs debit spreads
Summary of key points to remember in credit vs debit spread
Debit Spreads vs Credit Spread ? Which is best and when ?
When you are trying to get a answer for whether to go for Debit Spread vs Credit Spread in vertical spreads. What factors should you consider when deciding whether to trade debit or credit spreads, and when should you utilise either one?

 

What are the different types of vertical spread options?

In the world of options … Read the rest

Why do options buyers fail? Why naked buying is so hard?

Why do options buyers fail? Why naked buying is so hard?

 

Main villain for option buying / buyers is theta/time decay. It is much higher on weekly options compared to monthly Options. Even on weekly options it’s higher towards weekend/ Thursday comes closer that is expiry.

 

How to overcome the hurdles for naked Option buying?

Option strategies are best for reducing the affect of theta / time decay. Here you buy one option at a strike price and sell another at another strike price. Here greeks cancel each other.

So effectively it is defined by fixed profit vs fixed loss mostly by vertical spreads available. There are some strategies with unlimited profits or losses but they are used … Read the rest

Adx di indicator for catching the momentum

Adx directional index indicator for catching the momentum

So most trading platforms actually have two different versions of the ADX indicator, which is where many people get confused when adding it to their charts. The first version of this indicator only has only one line on it, which is the ADX line itself. This version of the indicator can usually be found by simply clicking on “add indicator” and then searching for ADX.

The second version of this indicator has 3 lines, which are the ADX line, the Positive Directional Indicator (which can be abbreviated to +DI), and the Negative Directional Indicator (which can be abbreviated to -DI). Now to get this version of the indicator on your charts, you … Read the rest

What is Options Max pain Strategy? How does it work?

What is Options Max pain Strategy?

What is Option Max Pain?

It is always seen that 90%+ options expire out of the money. Since most options buyers lose money in options trading, the price of the underlying stock somehow must be adjusted / manipulated to close in a way that benefits option writers at the time of options expiry. This is basis for Option max pain point where the loss incurred by options buyers is also termed as “Options Pain”.

How does Options Max Pain work?

On option expiration day, the underlying stock price often moves toward a point that brings maximum loss to option buyers. This is how the Option Max Pain work.

Options Traders can utilize this concept … Read the rest

Open Interest vs Trading Volume in Options trading- Very important

Open Interest

If a buyer and seller come together and initiate a new position of one contract, then open interest will increase by one contract. Should a buyer and seller both exit a one contract position on a trade, then open interest decreases by one contract. However, if a buyer or seller passes off their current position to a new buyer or seller, then open interest remains unchanged.

Open interest is just the contracts that are created(buy of 1 lot and sell of 1 lot will give 1 Open interest) are created. If an options contract exists, it must have had a buyer and also for every buyer, there must be a seller since you cannot buy something that is … Read the rest

BankNifty weightage cpr strategy

BankNifty weightage cpr strategy

The NIFTY Bank Index includes the most liquid and significant banking firms in India. It serves as a benchmark for investors and market intermediaries, capturing the capital market performance of Indian banks. The Index includes a maximum of 12 companies that are publicly traded on the National Stock Exchange of India (NSE).
The free float market capitalization approach is used to calculate the NIFTY Bank or BankNifty Index.

As on December 31, 2021 Constituents and Weightage

         Company’s Name                               Weight(%) 

  1. HDFC Bank Ltd.                                           27.80
  2. ICICI Bank Ltd.                                           22.62
  3. Kotak Mahindra Bank Ltd.                         11.61
  4. Axis Bank Ltd.                                              11.52
  5. State Bank of India                                      11.45
  6. IndusInd Bank Ltd.                                      5.91

Above six stocks are the main CONSTIUENTS of banknifty Total weightage … Read the rest

Options Greeks and its impact on options

What are Options Greeks? how to use them for your favor?

The majority of the time, Options Greeks are turned down owing to their complex mathematical calculations and inability to comprehend them. 
Instead of attempting to calculate the values of such Options Greeks, let us attempt to define them and at the very least determine their utility in our daily option trading.
It would be impossible to compute each and every Option Greek of our position unless one were mathematician. 
There is, however, simple solution because there are various systems available today that assist us with Options Greeks of our overall options positions.

 

Why should you consider Options Greeks? 

Because they provide insight into the various options 
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