100% Success Rate Index Options Intraday Strategy

This strategy's success rate is 100% when
1. Traded on multi-sector Index like Nasdaq, FTSE100, etc, (not suitable for single-sector Index like Bank, IT, etc.,)
2. Avoided trading last 5 trading days before contract expiry date


Two staged ENTRY:
1. Intraday noise removal (using simple price action)
2. Trend identification (based on demand level)

Two types of EXIT:
1. Profit booking (auto square off)
2. No stoploss (Investment amount must be bearable loss)


THE STRATEGY :
(5 minutes candle chart)

Half signal (Noise filtering) : First candle of the day with high-low<=X points (0.08%)

Full signal (Trend identification) : TBQ >= 2 X TSQ OR TSQ >= 2 X TBQ
(TBQ - Total Buy-Bid Qty / TSQ Total Sell-Bid Qty, (Pending Limit orders))


Bullish Entry : TBQ >= 2 X TSQ when price is near day's HIGH
Profit booking : Auto square off

Bearish Entry : TSQ >= 2 X TBQ when price is near day's LOW
Profit booking : Auto square off


Feel free to paper trade using this strategy on your favorite Multi-Sector Index for ONE WEEK and vote your results.

NOTE : THIS STRATEGY CANNOT BE BACK TESTED AS DEMAND LEVEL DATA IS AVAILABLE ONLY ON LIVE INTRADAY SESSION

All The Very Best !

 

If difficult to get signals try this:
Full signal (Trend identification) : TBQ >= 1.5 X TSQ OR TSQ >= 1.5 X TBQ

 

No option strategy has a success rate of 100%.

 

Then you must be GOD to know EVERYTHING about OPTIONS

 

I am OptionGuru

 

Guru is also a student...who constantly learns, unlearns and relearns out of humility

 

box?

 

Could you post an example? I have a feeling that the bid/ask spread will be problematic.

 

No need to post an example. If one converts to a box at a price which locks in profits, then it is risk-free IF it is held thru expiry. In reality, the short legs can present some risk, as can unwinding un-simultaneously. Add in commissions and fees, and you just further raise the bar of profitability, but I can certainly imagine a trader only putting on a box at a price where profit is guaranteed.

 

Why just not take the profits outright ?

I always wonder why people want to "lock-in" profits with convoluted schemes.

A box "could" be a great trade if there is some dislocation going on with the underlying (like a hard to borrow condition), however it is too easy to get burned when using american style options.

Another decent use for a box could be to play some interest rate stat arb, but the edge is too small most of the time (hard to overcome comms for a lowly retailer like me).