Long setup:

Trading a reversal using 3 bar Price Action

1. Bar 1 closes lower (Red)
2. Bar 2 closes below Bar 1 (Red)
3. Bar 3 closes above the high of both Bar 1 & Bar 2 (Green)
4. Buy at the close of bar 3
5. SL is low of Bar 3 & Trail SL
6. Decide position size as per risk

Another Good Friday. Got good decay.
Got 1 lakh.
Traded quantity 4500
1. Entered 14700 short straddle and got 50k.
2. Moved to 14650 short straddle and got 46k.
3. One error trade in execution gave 11k. Exited it immediately.

Closed all positons before 2:30 as premiums are low.

Order book

Purchased some unlisted shares from LeadOff.
Platform is reliable as shares will be transferred directly to CDSL/NSDL accounts.
Lot of unlisted companies are available, can try if interested:
1. Chennai super kings
2. Reliance Retail
3. Pharmeasy
4. NSE(sold out)
5. Kurlon
etc..

(1/3)

I am using only one indicator in the chart.
i.e DC(20) = Donchain Channel
I use 3 min chart and the DC period is 20, so DC high is basically the last 1 hour high & DC low is the last 1 hour low.
The middle line is the median of high and low.

(2/3)

Donchian channels are mainly used to identify the breakout of nifty/BNF.
We can take directional bias based on the indicator.
If nifty is breaking DC high, can take bullish view.
if it is breaking DC down, can take bearish view.
if it is in between, can trade range-bound.

(3/3)

We can monitor nifty/banknifty futures with volume along with DC.
If the volume is 1.5 to 2 times the average volume and if DC high/low is taken out then it can be a strong bullish/bearish signal.

(1/n)

Finally, I quit a high paying 15 year job to become a full-time trader.
I always dreamt of not working under anyone but yet to make good income and it happened with trading.
Now I am independent, own boss and have plenty of time to do whatever I wish to do.

(2/n)

But, Don't take any hasty decisions, I was planning for this since last 3-4 years.

My story.

I was always obsessive of stock market since 2005 as I like gambling, poker, rummy etc :)
I joined my first company in 2007 and then I got an opportunity to visit overseas.

(3/n)

I got 1 lakh money for the business trip, I put entire money in Reliance Power and as usual lost everything.
Then tried some more stocks and eventually lost and out of market.

Then had a long break until 2015 as my career was going great and was in Korea for 2 years.

(4/n)

There I met a colleague in Korea and he inspired me to enter stock market again. He used to put almost all his salary in stock market and 90% of it in a single stock.
Re-entered market with some stocks and slowly learnt F&O.
I put 10 lakhs in F&O and as a beginners luck,

(5/n)

it went upto 22 lakhs with option buying and futures.
And in next 20 days, it has fallen back to 2 lakhs. That time there was only monthly options and I still remember a trade where I bought with entire capital banknifty PE option for Rs. 350

Understanding HIGH & LOW VIX

VIX at 16: If you check today's IV behaviour, they were not spiking much even with decent delta move in BNF. The movement was subtle, giving some time to adjust. So someone having good adjustment mechanism can stay in the game longer.

1/

VIX at 20: The same delta move will be more fierce, coupled with rise in premiums. When premiums rise with movement, then the adjustment cost increases exponentially. The premiums can fall back at EOD, but the damage is done if caught in the spike.

2/

After talking to few traders, their backtest result was in favor of high VIX of 2020, rather than 2017-19. The key flaw in the backtest were the adjustments which are not easy to calculate. Combination of high theta & fixed SL during high VIX, the IV crush is cashed at EOD.

3/

Neutral option sellers who don't adjust & have fixed SL on a static straddle will not be able to benefit highly in low VIX. The straddle which moves away from ATM will increase no matter what. But if we keep on rolling our strikes, then we get good realisation of theta.

4/

I have made majority of my profits in option selling when VIX was at 13-15, mostly just relying on my adjustments. Since 2020 with high VIX, adjustments stopped working because of increase in the frequency of delta + IV spike combos & so had to shift to directional trading.

5/

To those who thought FMCG goes only one way, investing is super easy. buy quality FMCG at any valuations, do check history, though, its one of best sectors, it does test lot of patience

#PivotShiftIndicator
Those who followed this today would not have gone long in the open.
Both PSI and advance decline momentum were sloping downwards continuously even when the mkt gapped up and kept going up.Trollers might say this as post Mortem. But I made what I can... 😌.