Counter Trend Index Options Strategy

Discussion in 'Options' started by rajesheck, Apr 1, 2016.

What is the strategy's ROI per week in your paper trading ?

  1. < 1%

    0 vote(s)
    0.0%
  2. 1% to 5%

    0 vote(s)
    0.0%
  3. 5% to 10%

    0 vote(s)
    0.0%
  4. > 10%

    100.0%
  1. This strategy works best when
    1. Traded on multi-sector Index like Nasdaq, FTSE100, etc, (not suitable for single-sector Index like Bank, IT, etc.,)
    2. Traded as counter trend
    3. Avoided trading last 3 trading days before contract expiry date

    THE STRATEGY :

    Half signal (trend reversal)
    : A morning trend of 0.30+% reverses

    Full signal (counter trend) : TBQ & TSQ levels represents counter trend
    (TBQ - Total Buy-Bid Qty / TSQ Total Sell-Bid Qty, (Pending Limit orders))
    [​IMG]

    Bullish Entry :
    TBQ > TSQ AND day's HIGH Crossover
    Profit booking :
    TBQ <= TSQ

    Bearish Entry :
    TSQ > TBQ AND day's LOW Crossover
    Profit booking :
    TSQ <= TBQ

    Stoploss : 0.30%

    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 !
     
  2. The best trades/traders are discretionary -- trading is an art and science...but more art :rolleyes::confused:

    No silly formula or computer program or algorithm that scalps for scraps can do it.
     
    Handle123 and rajesheck like this.
  3. YES...Trading is an ART of Business Psychology !
     
  4. And this strategy is created from the perspective of trading psychology for optimal success rate !
     
  5. ktm

    ktm

    Another amazing strategy today? I should take the weekend and rent some extra space to store the giant piles of cash I'm going to make. :thumbsup:
     
    d08, Handle123 and gkishot like this.
  6. Handle123

    Handle123

    Art of Business Psychology? HUH? I don't have bucketful of lawyers in my office when I trade, I don't look at a chart and think Psychology at all, I see ongoing Painting of recent past, only mentality is where "Bait" is going to get trapped which become music to me ears, "I could have danced all night" mentality. I see it as Art and Music/more along the lines of me against me since I am my worst enemy, except the cat, no one else in office and I hear my own voices yelling "Crush those sons of b...ches", almost baseball season, "Go Cubbies", like I been brainwashed into thinking they have a chance this year too, "Peanuts, Popcorn and Red Hots", yea I have active mind and I get many thoughts of when I trade, last thing I think about is Business, even though it is a Business, it can be named "Art of stealing your money legally" or "Art of sweeping up what others throw away".
     
    K-Pia likes this.
  7. ironchef

    ironchef

    Don't know if it works but I do appreciate you posting it and sharing with all of us.

    I am struggling to find TBQ and TSQ in my broker's trading software package. Can they be using other terminology?
     
  8. Simply double click (or right click and select from context menu) on the symbol column or price column in marketwatch window. Most of the trading platforms take you there :)
     
  9. ironchef

    ironchef

    Do I have to sign up and use Snapquote or can I get the info from my trading platform?
     
  10. To be honest...I too have very similar view point or sentiment :)

    In schools we had separate lab sessions for physics, chemistry and biology. But no business institute in the world facilitates students to apply practically what the theory taught them, for whatever reasons. The worst is that most of the full time faculties are not businessmen. So we can imagine what kind of wisdom they could share to business students.

    I see stock trading as one of the realtime live facility to create and apply our own trading/business strategies to test and develop our trading/business skills.

    At some stage in his trading career, a trader can invest his money and business skills in his favorite business :)
     
    #10     Apr 1, 2016