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Purpose of this thread is to keep record of the trades I'm taking or going to take in this account, this is live account with intention of scalping options for 2-12 points. Recent changes in market conditions plus demo trading bad habits are sipping over, so I've decided to change my usual approach of trading a little and trying my hand at scalping with small account.
Market traded: Indian Index Nifty 50, later might add BankNifty
Starting capital for this account INR 12000/-
Cost for per "trade" (not per lot) counting both legs included is around USD 0.6 /-
Leverage activated, Upto x5 in buying and Upto x20 in CO. Yearly cost of this is USD 15/- paid upfront.
Starting capital just enough to play with 2 lots in Nifty ATM strikes.
Today taken 3 trades seperatly, avg profit of 3.18 points, so still on lower end of the profit range. This will improve as account size, confidence and risk appetite is built up.
MTM Rs 716/-
Profit roughly Rs 600/-
Profit % over capital, approx 5%
Note: This account has no real impact on my financial condition as its too small and is used mainly to avoid any kind of demo trading from here on and not losing touch with experience of having money on the line. Lets hope I do not blow it up and keep trading in it as much as I can
Took one more trade to close for the day, it was against the trend, but it did give the highest profit in terms of point due to bounce in PE premium after such massive drop due to rally.
More than what I was expecting, especially considering positional view was wrong and market went against me massively. I got lucky, even if I would like to claim otherwise.
Expiry day, first half even though market was kind of dead there were few small opportunities. I made some points, though lesser than yesterday in terms of avg points per trade I had also ended up taking more trades and increased lot numbers.
Capture
MTM 888.75
Profit 748
Profit % over opening day account size is aprox 5.7%
Will be little dangerous to trade in 2nd half due to expiry day drop in premiums, best strategy to gain some points in such a scenario is selling OTM strikes on both sides, but I don't want to do any option selling with this account just yet, as it will be little harder to cover if things go against me.
I've realized some problems with my tendencies while trading, I mean it seems to me that by nature I'm pron to take mean reversion trades but that only works when in some form or shape I can determine ranges and good entry points, downside is that I often miss on trending trades, and also have possible exposure to risk due to spike in trending side.
I didn't realize this before due to less number of trades but now that I'm taking more and more trades, many things are getting apparent.
In this example of today, I took my trade exactly on candle which formed 13 (TD-combo), next couple of candles gave me some profit and I booked, but in reality I should've been able to clearly see the trend and enter CE when I was exiting PE at mean line. Or other way to play this would be to buy one lot in which-ever direction market is showing trend and if I'm still insisting on taking mean reversion trades
I should be buying PE, otherwise to maximize profit potential trades need to come in same direction as market mood.
Funny thing was in this one I booked too early, of course I'm not going to say I planned for what happened next on chart, sadly my indicator programing ability is far exceeding my trading abilities atm
Atm I've not applied position sizing in this, but in future if and when I do it is possible to book one lot for the current profit and let other run as long as market is acting in accordance to view.
Only two trades, I was also on side of the trend just got out early. However market is now having almost no movement, small changes in premiums but it is little risky to get into position before some bias is introduced again
MTM 382
Profit approx 300
Profit % on opening day balance is little over 2%
Will look for more opportunity if I get any.
Need to improve little on points scored, especially since lots taken are either 1 or 2, that's not going to be huge profit unless lot of points are scored.
Due to cyclone fuss didn't remember to save SS from terminal but today's day ended in loss of approx 400
Total loss is approx 600
% loss on capital is around 5%
I'm starting to notice how easy it is to preach others about "following the plan" and "letting it run", haha.
I need to make a point to point plan for even scalping, I thought it would be fine since I've deployed working systems for that with good expectancy, but I dare say having just system doesn't really work and I need to make plan and take print out to hang on my trading desk.
1. Differentiate what is in the trend trade and against the trend trade
a. In the system it could be done with having price keeping above weekly open and weekly ADR mid levels
b. If it is above both of the above there is good chance that it will be up-trending day, you should try to enter at every pull back in daily open or TWAP daily
c. Accompanying trades could be cached also in accordance with TD-seq, at every retrace of 9, you can do this till Combo is formed and then exit the positions. If after creating 9 markets are showing weakness it is sign of trend losing strength, so break from 9 is good confirmation to enter again in new trade in trending direction
d. You can let trade run with tgts of ADR high of the day with SL of TD support lines
2. In down trending all above can be applied in reverse.
3. In side trend, that is when price is between noise area of daily and weekly it is possible that price will stay there till break out is given, it is possible to have option entries calculated in such a cases
4. It is in best interest to avoid taking mean reversion trades or against the trend trades till account is small, not much room to do adjustments so it is best to stay out of them all together in this experiment till account grows.
Will read this every single day from here on just to engrave it in my mind and form habit of it
