Hello so for right this moment’s market there’s a quick straddle commerce which was executed it led to general loss would wish to know your ideas on what might have been higher and another advise that you’d have
nifty 17100 CE @ 131nifty 17100 pe @ 127
As market went down sl hit for pe at 191holding the ce until full market finish hours lastly exited it at 125 general a loss
Let me know what might have been higher and any advise that you’d have
Thanks
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Don’t you employ Sensibull or Opstra earlier than deploying these methods?
No i used to be conscious that opstra is for backtesting solely and for reside information that you must pay subscriptionLet me know if i have to replace myself and embody in my day by day methods and can absolutely add
What I believe is as choices are dangerous, it’s higher to examine the methods earlier than deploying in actual time. We are going to know the way a lot we will acquire or lose earlier than market opens. After all, because the premiums change, the acquire and loss will change too, however we may have good concept earlier than hand.
And we will even strive completely different adjustment eventualities to both improve the acquire or lower the loss earlier than and could be prepared when market opens, not that market is not going to shock us, however we may have some concept concerning the loss not less than, notably after we are promoting.
I exploit Sensibull, so I’m saying this. I don’t find out about Opstra.
so how i obtained to that is i had purchased the subscription of opstra there it had the choice simulator in that i rigorously examined straddles purely intraday and it confirmed good leads to log phrases payoff was constructive so after that i did paper trades after which executed it
from the primary day of actual deployment out of 17 buying and selling days pink are solely 2Problem is that when in inexperienced i exited it very early and like the instance of right this moment when in pink i have a tendency to carry it as per the foundations that i had backtested result’s that thse two days have eaten up the inexperienced days and internet now in 0
So I wrote this right here hoping to hunt some advise on most likely one thing that i used to be doing improper
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I’ve kind of the identical expertise as you.
So you aren’t taking positional trades and are deploying these methods intraday solely, and booked income early and waited until EOD for the market to reverse? Why are you reserving income early, did you not have goal and cease loss earlier than taking the commerce?
I don’t know if again testing guidelines work 100% the identical in reside market, notably when market is unpredictable with calls and places each going up and down.
And what was your view for right this moment, did you select quick straddle pondering market will probably be vary sure?
On a facet notice, no acquire or no loss after 17 trades doesn’t look that dangerous, in comparison with the expertise you bought available in the market.
Most likely you’re proper i ought to nonetheless to inexperienced days as i keep on with pink and right this moment sure i used to be aiming it to be vary sure and the premiums had been good so 100 factors plus minus i used to be good however I suppose most likely the gamma spiked and it resulted on this
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It’s going to work most of occasions however one good hole up or down will erode complete income made . And in addition it depends upon which day you’re taking it . May not work from Thursday to Friday on many days . Plus it’s assuming premium decay however what if premiums are build up earlier than any occasion or volatility grows . And there’s something we will’t measure ie market sentiment, one worth might improve and different gained’t bulge . Bottomline lot of understanding is required earlier than you you do it bare . Until then hedge positions with possibility purchase at otm, however it is going to eat away a lot of the revenue, although you’ll be able to take extra tons due margin profit however extra tons means it kinda turns into leveraged and beats the aim of danger administration
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Possibility promoting is finest performed intraday close to expiry day or on expiry day. All the time use cease or hedge. Additionally with hedges you’ll be able to cut back your margin necessities.
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thanks for sharing i’ll undergo sensibull and allow you to know if there are any extra doubts
Hello I attempted th sensibull vwap and possibility value which you had shared and had a number of inquiries to it like that is the logic of you purchase the spikes after which exit on the cools as we’re on the quick facet and would wish to acquire Max premium,Additionally when you have an in depth video someplace or an article that you would share for this which explains it step-by-step i believe that may be a superb begin for me to truly have the comparability in actual market hours as nicely after which i can tie this again to my exiting technique for effectiveness
Thanks
There isn’t any one measurement suits all shirt.its upto your danger profile, length of technique of what you wish to do.For youtube i doesn’t have any channel however should you sort Straddle there will probably be 1000s of movies as its probably the most bought technique on the planet .Each tom dick and harry is promoting programs on Straddles with 100s of types.
Backside line is Threat administration, Place sizes, IVs and Route. No repair components
Only one fast query and let me know if my understanding is correctGiven spot is at 17000 then if i search for a otm possibility which has approx delta of .16 and approx theta of say 5 so this may imply that regardless of the place the market goes i can anticipate roughy about 3 factors coming from thins taking the opposite factors to go away for when the gamma spikes simply in case
One suggestion learn varsity and sensibul classes.
Then simply see possibility chain ,value and delta . Examine artificial future, Analyse sum of Atm premium over time ,distinction in premium between 2 strikes and so on.Relaxation you’ll perceive your self,additionally do paper buying and selling.
Animiesh:
Only one fast query and let me know if my understanding is correctGiven spot is at 17000 then if i search for a otm possibility which has approx delta of .16 and approx theta of say 5 so this may imply that regardless of the place the market goes i can anticipate roughy about 3 factors coming from thins taking the opposite factors to go away for when the gamma spikes simply in case
if the NIFTY value will increase by 10 factors, the choice value will improve by roughly 1.6 factors.
should you maintain the choice for sooner or later, you’ll be able to anticipate the worth to lower by round 5 factors.
Animiesh:
i can anticipate roughy about 3 factors
???
You might be asking well-known 16% delta straddle. Learn → https://www.quora.com/How-risky-is-it-to-sell-an-option-strangle-with-a-16-delta-on-both-the-sides/reply/Amit-Ghosh-20
.16 delta straddles means you may have 68% of profitable. Its chance. Nothing else.