Learnings

Day one

1. Always use market orders. What we are doing is trading in a very short term trend. The only way to do it successfully is if the trend has already started and we are expecting continuation. Limit orders are perfect when we are expecting a reversal, as we are expecting the price to move in an opposite direction and then follow the desired direction. Market orders are perfect when we expect continuation of trend.
2. EMA(14) over 2 minute chart is the new stop loss and trade indicator.
3. Don't get emotionally involved with the trade. Don't expect the trade to reverse after you take a position or second position.
4. Reduce trading size to 20,000.
5. Trade option price of around 100 and target 5 points. Do multiple trades if required. If the market trends then increase the target. Do not increase stop loss.
6. Put stop loss.

Day two

1. Trade when there is no movement.

2. Always note the position of highs and lows before you trade.\

3. Trade by Invested amount, not lot size.

4. Try to buy when the stock is at low and sell when the stock is at high.

5. No trading in first and last 15 minutes.

6. Trade with the trend. If higher lows and higher highs are being made, then buy at low. Sell when a high of the same level is made.

7. Expect to capture one-third of the movement.

Good trade turns bad

Following Business Plan 4,I went short the minute the market opened on Wednesday. The market went up immediately hitting my stop loss. I reversed direction immediately, and waited for the market to rise up by 33%. Everything went perfectly as planned till now. Now came the problem. I did not follow the EMA(14) sell signal when the market fell below the line after a long time. The market unfortunately did not rise back up and kept falling till it hit my stop loss. I ended up loosing 11000 on 40000. A very bad day. At least found the importance of EMA(14) line.

Another horrible day. Target was not reached. Made many losses. Brain fried. Trade on diversion from EMA(14). Will trade on 20,000. from tomorrow. Don't need more money. Target 1000 per day. Strict stop loss reversals tomorrow.

Amadeus Trading - Business Plan 3 & 4

The details for Business Plan 3 are given below:

Invested amount - INR 40,000
Vehicle - NIFTY ATM Options
Split up - 6-10 lots of price 50-150 each
Time - 1 day
1 month - 100% with Probability of profit as 75%
1 day - 10%
Reentry - Next day
Stop Loss - 10% or 1 day
Cool off period - Same day. Only 1 trade per day
Max profit - 100% over a month
Max reduction - 88% of portfolio
Test period - June-July
Trade Idea - Follow Slow Stochastic on this chart. Add SSTO(14,3) and EMA(14).


The details for Business Plan 4 are given below:

Invested amount - INR 40,000
Vehicle - NIFTY ATM Options
Split up - 6-10 lots of price 50-150 each
Time - less than a day
1 month - 200%
1 day - 15 points
Reentry - Immediate
Trailing Stop Loss - 5 point
Stop Loss - 10 points
Cool off period - Same day. Only 1 trade per day
Max profit - 200% over a month
Max reduction - 10 trades to reach 0.
Test period - June-July
Trade Idea - Follow Slow Stochastic on this chart. Add SSTO(14,3) and EMA(14).
Have a trailing stop loss of 5 points when target is reached.Reverse on hitting stop loss. Don't trade if stop loss is hit multiple times. Wait for breakout and then enter in direction of breakout.