Introduction:
Option trading is always considered as a high risk option and yes it is. It always involves high amount of risk leading the capital to be exhausted easily. Major reason involves emotion and non-systematic approach of trading. Mostly traders went looking for a strategy that should always work but practically, market is designed in a way that short term gainers have very less chance to make profit out of it. How ever, there is always a chance of making profit if trading can be done in a systematic way and without any emotion involved. For example risking 2% of capital per trade is often considered as a best trading practice while dealing with derivatives. Also, there are many good articles available in internet on proper trade management, risk management and capital management. It usually took a lot of time to have a grip over the derivatives, because it always looks simple to dive in but it is actually very complicated in deep. Algo platforms now a days, somehow playing a major role due their nature of emotion less trading.
Stockyfly Algo Weekly Update
Here at stockyfly lab, we are working hard to introduce various new features for option buyers to handle different kind of market situations. Last week, stockyfly algo is empowered with features like;
- Trailing SL: It helps minimizing risk when trade not in favor and increase profit side when prediction is in favor.
- Dynamic SL: It helps to trade with minimal risk in sideways market. Earlier NIFTY SL was 20 points, BANKNIFTY 50 Points and FIINIFTY 20 Points by default. Now, it could be changed by the program to less than the default value and initiate a trade.
- Hero or Zero trade: Hero or Zero Trade involves low risk trades where SL remain as 0 where as Target is undefined and could be exit with very good reward based upon market situation. Trade initiated with out any Stoploss positional basis
- Strangle : This strategy involves buying of LONG and SHORT side (CE and PE with same quantity) with same or equivalent price when market is unpredictable. Have to exit when overall in profit. At the same time, it is also risky as option involves decay and if it happens in both sides then loss may increase. Hence traders are advised to keep very less quantity in their Hero or Zero setting based upon their risk appetitie.
Per lot profit remained 2,385/- approx for the week. Two Hero or Zero trades executed for testing purpose considering it as new feature, here are the trade details which are closed this week;
Per lot profit remained 1,966/- for the week.
So overall gain of the week remained: 2385 + 1966 = 4,351/- per lot
Top 5 Gainer of the Week
Above remains as top 5 gainer of the week as per the data captured by the system from their trading account. Names are being masked for privacy.
Case Study:
Profit or loss display in above image are being captured by the system from the real trading account. It indicate always being on fixed risk sizing. Trader can always adjust their settings per lot and frequency of trading in a day in their Algo Configuration section of the application.
On-Boarding
We try our best to keep on boarding process as simple as possible with our prompt support team. For on boarding, Telegram: @mausmip or whatsapp: 8658013933
Important Note:
- Hero or Zero trade & Strangle trade is optional for the trader, He/She may or may not select it. Lot size can be configured. We are advising to have very less qty for this feature. If with less capital better to avoid this feature (do not enable it).
- More information on Algo platform and associated risk can found here and here
- Android Mobile app can be downloaded from here from Google Play Store
