ORB Intraday Strategy in BNF with good accuracy (15 min TF)
Explained Rules & analysis .
Do good backtest before taking positions .
Retweet for Maximum Reach .
Rules :- 15 min
Entry :- After 9:30, keep 2 orders (1 for buy at first candle high, 2nd one at sell at first candle low). Any one will trigger . Then place SL & Target Order .
SL :- 200 points
TSL :- for every 100 points move , move SL to 100 points
Target :- 200 points
.
Let us analyse trades of Sept 9th to Sept 11th .
Sept 9 :- First 15 mins candle Low & High (22453 & 22565)
Short trade triggered by 22453 at 9:51 am .
Target 22250 with SL 22650
200 points targets done by 12 pm .
Sep 10 :- First 15 mins candle Low & High
(22425 & 22534)
Long trade triggered by 10:45 am & target hit for 200 points .
Sep 11 :- First 15 mins candle low & high (22443 & 22675)
Short trade triggered by 9:42 am & target hit for 200 points .
The main aim of an Intraday Trader , is not to get caught in SPIKES & big Slippages.
So , I thought , if we create multiple entries in different times in the same day , there is some time , when market consolidate & it gives us good profits.
(2/n)
& if market is moving one side, SL hit in losing side & other side will help to make profits
& if market does V shape recovery, then also this strategy perform good as options are OTM & not STRADDLES .
As per Backtest , recovery of 1-1.2% from lows will not give loss.
Basically there are 4 Greeks we need to understand while doing option selling.
Delta - change in option based on change in underlying
Gamma - acceleration of delta (mostly effected on wed & thu of present expiry)
Theta - time decay
Vega - Volatility
(1/n)
For option seller -
Theta is most favourable . So always sell options , where most extrinsic value is there .
Higher delta , higher chances of becoming ITM option , which is a negative for option seller . So always sell lesser delta value .
(2/n).
Gamma effect - will increase the option price very fast (normally we observe this in spikes while SL hunting) will happen . So to avoid this , do next week options or monthly options . Gamma effect will be less .
Basically there are 4 Greeks we need to understand while doing option selling.
Delta - change in option based on change in underlying
Gamma - acceleration of delta (mostly effected on wed & thu of present expiry)
Theta - time decay
Vega - Volatility
(1/n)
For option seller -
Theta is most favourable . So always sell options , where most extrinsic value is there .
Higher delta , higher chances of becoming ITM option , which is a negative for option seller . So always sell lesser delta value .
(2/n).
Gamma effect - will increase the option price very fast (normally we observe this in spikes while SL hunting) will happen . So to avoid this , do next week options or monthly options . Gamma effect will be less .
Thread (MUST READ , RETWEET FOR MAX REACH IF U LIKE) :-
New Trader , Lets name “RABBIT” opened Twitter - Followed 50 traders on Weekend.
Brought capital of 10 Lakh.
Seen profit Screenshot from Non directional trader on Friday.
Excited to punch STRANGLES on Monday !!!
(1/n)
Monday is a Directional day. RABBIT lost 1 Lakh. Strangles trader didn’t post.
Same day Huge profit screenshot from Directional trader.
RABBIT got excited & ready to do directional selling.
VIX increase & no decay in option- exited for 1 lakh loss.
RABBIT depressed.
(2/n)
Tue Evening , Post in Twitter saying “I MADE 100% in a day with OPTION BUYING”. Again RABBIT cheered up & ready to buy option on Wed.
PREMIUMS fallen both sides . He was SHOCKED. 100% guy said , being Wed, I didn’t buy option due to theta fear.
RABBIT lost 30% capital.