Wat today happen with nifty 16450 ce and yesterday bnf option, it can happen to anyone. Either you trade any time with sl-m. Even in stocks further worst.
Every type of system hv some limit. Suppose someone hv 100cr aum for one trade then impossible to exit at price sll or slm.
Even in urgency you can think wat will happen. Also nowadays one kind of quick money scheme like intraday option selling very famous along all ppl and everyone hv little various like 20-50% series stoploss. When they start hitting; huge demand of buyers n no sellers to fill.
Definitely smart ppl already taking advantage. Now question is how we can survive with slm? Answer is straight No. Few execution system can precise but can't ignore this problem.
Case Study of Mine Mindtree Earning trade 1. Started with 1:3 Call ratio of 4k credit approx. 2. In dip volume missing so converted to 1:2 yesterday. 3. after morning gap when ORB trigger converted into butterfly. 4. Also took CSP sell OTM put. (optional)
Overall stop 3k holding.
without CSP.
Trade started with following things in mind, liquidity on put side poor unlike call side really good liquidity also looks good vol short trade but high beta stock and as per chart and data wise choose to sell R2.
Risk Free Projection (RFP) Ver. 2.0
RFP basically a way where we can reduce/remove our losses from position but it can be only possible by time and profit running only. This is also subpart of Time-Warp option strategy. Lets explore in detail
1. Locking Profit
When your long call/put position already in profit then simple buy hedge (convert to spread). this addon make spread formation where ur loss almost offset. advice only do when 50% premium gain and view still sideways to directional.
2. Moving Leg
When you have spread and already running profit. you can even move your any leg closure and this will make almost risk free. cons- theta of position reduced; so profit potential going down with this move.
LPT vs HPT
One thing commonly I see in new commers they focus a lot on high probability of trade, for that they try to be prefer big range for trading from start. As static edge of most occurance of winning with you no doubt.
Even I go sometimes HPT strategy but after learning a lot found this is also kind of myth to pick big range. So let's start and sharing my experience about it.
Both hv own pros and cons. Both good as well.
1. Low probability of trade: generally hv low probability of profit (POP), but as per risk reward (RR) very good trade but also enough credit to manage with various scenarios easily. Here edge is not statics but your trade management skills.
If you are intraday trader or swing trader then there are some location where you should focus, these area price action most important as it's give high probability trades and good risk reward.
Most of Intraday system works around them even simple to complex.
You should always mark these zone in your chart. 1. Previous day High, Low and Close (PDH, PDL & PDC). 2. High and Low formation of current Day. 3. Major Swing High and Low. 4. Vwap Closing (or HVN high volume node of yesterday). 5. Big Round Number. 6. First hour Range 7. VWAP
1. Always stay sideways 2 bullish above PDC, if script sustain above PDH then Bullish. Basic Trend following system if price not stuck in Range. U can adopt simple system. 2. Current Day high/low mostly keep testing & form double top/bottom which either break with vol. Or fail.