@moneycontrolcom did a detailed story on my trading journey.
— Sourabh Sisodiya, CFA (@sourabhsiso19) May 26, 2020
But many couldn\u2019t read it as it needed a pro-subscription.
So here\u2019s a blog on the same :https://t.co/dwN2xieUKd#trading #journey #quant #options #algotrading #markets #OptionsTrading
Getting many DM\u2019s on how I can learn and trade like you.
— Sourabh Sisodiya, CFA (@sourabhsiso19) January 10, 2020
To be a succesful trader one needs an edge
My edge:
1)focus on selected instruments (Banknifty majorly and few stocks)
2) backtested my strategies historically (for past 10years)
(1)
Do I trade only BNF ?
— Sourabh Sisodiya, CFA (@sourabhsiso19) March 4, 2020
Other than BNF intraday , I run few other systems too.
1) Intraday Momentum
2) Positional systems
3) Vol Crush Trade etc
Goal of system trading is to run few non-correlated strategies together so that system drawdown is at the minimum.#trading #systems pic.twitter.com/mS8jFEaLUW
Options Thread
— Sourabh Sisodiya, CFA (@sourabhsiso19) December 7, 2019
How options allows to change and adjust view dynamically.
Let\u2019s understand with a live example.
Example : Nifty is at 11921 and you are bullish on Nifty.
1) Buy Naked 11900 CE(call) at 167
Breakeven : 12068
Max Loss : Rs 12555
Max Profit : Unlimited pic.twitter.com/TXMhh5HWsd
Why do I trade BNF strangles ?
— Sourabh Sisodiya, CFA (@sourabhsiso19) February 22, 2020
Sharing EOD backtest results of straddles.
SL 50 points or exit at close
Then we I tested on 1 min.option data to find
-Best time to enter
-Best time to exit
-Max possible decay for day
-Days to avoid strangles#edge #systems #quant #banknifty pic.twitter.com/atYsKJJFG2
Did 8900 PE and 9000 CE at 9:30 am
— Sourabh Sisodiya, CFA (@sourabhsiso19) May 20, 2020
27 points decay till now and still trailing
Logic :
1)Open with previous day range
2)Wednesday there\u2019s good decay
3) Combined strangle was below vwap and trending down#data #trading #options pic.twitter.com/xyKmvhyz7y
Why exits are important:
— Sourabh Sisodiya, CFA (@sourabhsiso19) March 25, 2020
The morning is back to 250 and my entry price.
Why did I exit ?
Check the violin plot for the answer.
Range bound but can become trending in 2nd half. pic.twitter.com/vnKNY8iHyl
I start with only 1/3 of my original position when I get a signal and add more only if the trade goes in my favour. So when I am right I have my largest postion open and when wrong I lose only on the initial 1/3rd.
— Sourabh Sisodiya, CFA (@sourabhsiso19) September 28, 2019
How to manage straddles :
— Sourabh Sisodiya, CFA (@sourabhsiso19) November 20, 2020
1) As bnf open was within yesterday range created a 29000 straddle at around 9:30 am
29000 PE sold at 528 and
29000 CE sold at 453#trading #OptionsTrading pic.twitter.com/aPvB0iFvkA
Q\u2019s on how could I avoid the spike:
— Sourabh Sisodiya, CFA (@sourabhsiso19) February 18, 2020
Good trading is learning from your mistakes.
I exited early as I had already seen such markets and had made a note of it (see highlighted area)
Attached a ss of my learnings#OptionsTrading #banknifty #trading pic.twitter.com/wg6xq9uIE8
Thread on trading lessons & mistakes:
— Sourabh Sisodiya, CFA (@sourabhsiso19) June 23, 2020
I always keep my mistakes & lessons learnt in front of my screen while trading.
Bcz we as traders tend to commit the same mistakes everytime.
So seeing your learnt lessons everyday ensures that you avoid them.
#trading #mistakes
(1) pic.twitter.com/58i504kdfN
If you had created straddles/strangles you would have made loss.
— Sourabh Sisodiya, CFA (@sourabhsiso19) February 19, 2020
I didn\u2019t create today
Reason : My Learnings book
\u201cGaps generally don\u2019t show follow thru and premium moves are erratic\u201d.
Knowing when to trade is also imp.#banknifty #OptionsTrading #system pic.twitter.com/Mi5nBxBaJM
Sold 21600 PE -22300 at 335
— Sourabh Sisodiya, CFA (@sourabhsiso19) July 1, 2020
The strangle decayed almost 170 points.
Logic:
As soon bnf crossed 21670( prev day high & weekly pivot)
Created skewed bullish strangles.
Today being a wed the decay is high but key is to create skewed postions as per view.#trading #theta pic.twitter.com/nTP6s5fEoi
22 times SL got hit today but still day is in good green.
— Sourabh Sisodiya, CFA (@sourabhsiso19) June 25, 2020
Rules
1) Start small and add slowly as per movement
2) Don\u2019t let options become ITM
3) Make sure MTM loss < 2% of capital
4) Keep tight stop after 2 pm to avoid gamma risk#expiry #trading #theta pic.twitter.com/ebxWfCD3V0
Keep Kotak Bank in radar for tomorrow if sustains above 1900
— Sourabh Sisodiya, CFA (@sourabhsiso19) November 23, 2020
Trend : It\u2019s at New 52 week high
Options Data :
1900 strike has max call OI and it\u2019s last week of expiry.
Price sustaining above 1900 will make call writers run for cover leading to a further short covering rally. pic.twitter.com/GnLaHuhenU
Can long term investments also be done using systems ? Yes !
— Sourabh Sisodiya, CFA (@sourabhsiso19) March 21, 2020
I\u2019ll share the process that we use to build long term systems (100% systematic in nature)
1) Trend should be up
We can objectively decide the trend using a moving averages
(1) pic.twitter.com/x9SogbyZCc
Back to office after a while :)
— Sourabh Sisodiya, CFA (@sourabhsiso19) May 9, 2020
This is a framework which we use to build directional strategies.
Every point is quantified to build a logical system and then we decide for best option strategy as per our view.
What are your thoughts on it ?#trading #quant #data #system pic.twitter.com/3VRt487vXE
Keep Bajaj Finance in radar
— Sourabh Sisodiya, CFA (@sourabhsiso19) December 16, 2020
Logic :
1)Trend :
After sideways consolidation near ATH, formed a bullish candle with volume
2) OI data:
futures up 4.68% & also Futures OI up by 6.54% indicates long built up
3) Option Chain
5000 CE saw unwiniding and fresh put writing in 5000 PE pic.twitter.com/0Ci7FIXv0o
Easy trade in Bajaj Fin & RIL
— Sourabh Sisodiya, CFA (@sourabhsiso19) June 19, 2020
DHS pattern:
Criteria : Stock should be near 52 W or breaking a range
Entry : if 1st 5 min candle breaks PDH
SL : Day low
Trail using 20 ma
Focus on 1-2 simple patterns & manage risk.
Backtest results are also great.#intraday #patterns pic.twitter.com/NaPwh8nFhO
Took trade in Kotak as per new Pivot System which we which we recently backtested
— Sourabh Sisodiya, CFA (@sourabhsiso19) April 23, 2020
Logic :
Buy above R1 if 15min candle closes above R1
SL below candle
Bought as per system & kept trailing.
Attached backtested Equity curve.#trading pic.twitter.com/EaE4Iai9nP
How to do Trade Management
— Sourabh Sisodiya, CFA (@sourabhsiso19) March 30, 2020
What defines your success as a trader is how you manage your losing trade.
I was bearish on Reliance as per view in previous tweet and shorted it at 1052 but RIL started going up
(1) pic.twitter.com/64tJmZ9UEm
Thread:
— Sourabh Sisodiya, CFA (@sourabhsiso19) April 17, 2020
How I managed my losing trade to end in profit ?
Today was a difficult day for most traders as market opened with a 3%gap up & fell after that and again rallied in the 2nd half.
In this thread, I will be sharing my detailed trade management for today.#trading pic.twitter.com/i7nOwqUBwc
Thread
— Sourabh Sisodiya, CFA (@sourabhsiso19) November 7, 2020
How to manage strangles dynamically incase of a violent move or IV spike ?
1) Yesterday and infact entire last week if you had created strangles you would have experienced that during upmove only call side were increasing but puts weren\u2019t decaying.#trading #Options
Good to see lot of traders pointing out their mistakes.
— Sourabh Sisodiya, CFA (@sourabhsiso19) March 1, 2020
As they say \u201cLife is too short to make all mistakes yourself\u201d
Sharing some mistakes and learnings from the book Market Wizardshttps://t.co/M5OOHIJRCd#trading #mistakes #learnings #market #wizards pic.twitter.com/S8IoeTXKV8
How to sell option?
— Mitesh Patel (@Mitesh_Engr) January 30, 2021
Here let me explain through simple math.
Say BN at 30000
30000 straddle trading at combine premium 800 ( based on current volatility)
Put at 400
Call at 400
You don\u2019t know direction. Sold both.
If move will not come than both will decrease gradually.
15 Learnings from Power of Stocks: \U0001f9f5
— Aditya Todmal (@AdityaTodmal) January 23, 2022
Collaborated with @niki_poojary
Hope Everyone saw BANDHANBNK Numbers. I feel many such banks will go through a massive NPA Cycle followed by depleted Tier 1.
— Saket Reddy (@saketreddy) January 24, 2021
Hence, stay with the Top 3 banks :-
HDFCBANK
KOTAKBANK
CUB
They've low cost of funding, well provisioned Moratorium book, high ROEs & high Tier 1 CAR.
