THREAD ЁЯз╡- Trading Strategies
Here I discuss couple of setups which has an edge in the markets. This was evident during data analysis.
- No more than 1% of risk in one trade
- Max loss of 2% per day
- Keep your risk constant every day. Change your position size accordingly
- Focus on Risk reward as accuracy is not in our hands
ORB - You might be bored of seeing ORB in the list but this is still one of the best setups specially on INDEX (Nifty and Bank nifty) as they are trending in nature.
ORB works best in these 2 cases -
> Gap days
> Entry is made quickly after marking the levels. In other words, Quicker the entry, better it is
> ADX(14) > 30 & ADX(5) < 15 - If volatility is more on bigger TF and less on small TF, it gives you a better edge
ORB can be of 5, 15, 30, 1 hour or even more than that. If the entry is made quickly after ascertaining the levels, it is more profitable as it shows that market is trending today. You can diversify with different ORB timings
Profit booking can be booking half quantity on 1:1 and trail rest.
If mastered, ORB setup alone is enough to give you lots of profit in market.
VWAP Touch - How many times have we seen in a trending market where price retraces to VWAP and continues in the same direction. The best part of this setup is a very attractive risk reward this setup gives.
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Decoded his way of analysis/logics for everyone to easily understand.
Have covered:
1. Analysis of volatility, how to foresee/signs.
2. Workbook
3. When to sell options
4. Diff category of days
5. How movement of option prices tell us what will happen
1. Keeps following volatility super closely.
Makes 7-8 different strategies to give him a sense of what's going on.
Whichever gives highest profit he trades in.
I am quite different from your style. I follow the market's volatility very closely. I have mock positions in 7-8 different strategies which allows me to stay connected. Whichever gives best profit is usually the one i trade in.
— Sarang Sood (@SarangSood) August 13, 2019
2. Theta falls when market moves.
Falls where market is headed towards not on our original position.
Anilji most of the time these days Theta only falls when market moves. So the Theta actually falls where market has moved to, not where our position was in the first place. By shifting we can come close to capturing the Theta fall but not always.
— Sarang Sood (@SarangSood) June 24, 2019
3. If you're an options seller then sell only when volatility is dropping, there is a high probability of you making the right trade and getting profit as a result
He believes in a market operator, if market mover sells volatility Sarang Sir joins him.
This week has been great so far. The main aim is to be in the right side of the volatility, rest the market will reward.
— Sarang Sood (@SarangSood) July 3, 2019
4. Theta decay vs Fall in vega
Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.
There is a difference between theta decay & fall in vega. Decay is certain but there is no guaranteed profit as delta moves can increase cost. Fall in vega on the other hand is backed by a powerful force that sells options and gives handsome returns. Our job is to identify them.
— Sarang Sood (@SarangSood) February 12, 2020