1/ Having built online trading platforms, I can share insights what is happening with #RobinhoodApp, why their businessmodel is shady and how this $GME 🚀🚀🚀squeeze makes this all a pretty messy affair.
So, a thread 👇🏻
a) from Brazil: "97% of traders lose money" https://t.co/DVEfRkyvuS
b) from Taiwan: "Less than 1% of daytraders consistently earn positive returns"
https://t.co/920redEG3D
The reason is that one active trader can bring fees like 500 passive investors.
The chart below shows how call option activity in US has made all time records due to Robinhood customers
Last 6 months have been super bullish and therefore r/wallstreetbets has such a big number of active traders.
Citadel can then use flow data to their own benefit and that is very likely totally against the benefit of Robinhood customers.
"Do no evil" still should be a key principle for every startup.
Taleb's take on VaR used by RH and regulators is just not smart at all:
https://t.co/IJwwc244bX
VaR & tools "modern" portfolio theory have been blowing up funds & banks since first use in 1987. Blew up FNMAe & almost all banks in 2009, LTCM in 1998, First Op of Chicago in 1987, AQR in 2020 ....
— Nassim Nicholas Taleb (@nntaleb) January 30, 2021
Yet it is still in use.
They deserve to blow up. Just not with taxpayer funds. https://t.co/FkgMVUnkAs
More from Trading
Collaborated with @niki_poojary
Here's what you'll learn in this thread:
1. Capture Overnight Theta Decay
2. Trading Opening Range Breakouts
3. Reversal Trading Setups
4. Selling strangles and straddles in Bank Nifty
6. NR4 + IB
7. NR 21-Vwap Strategy
Let's dive in ↓
1/ STBT option Selling (Positional Setup):
The setup uses price action to sell options for overnight theta decay.
Check Bank Nifty at 3:15 everyday.
Sell directional credit spreads with capped
A thread about STBT options selling,
— Jig's Patel (@jigspatel1988) July 17, 2021
The purpose is simple to capture overnight theta decay,
Generally, ppl sell ATM straddle with hedge or sell naked options,
But I am using Today\u2019s price action for selling options in STBT,
(1/n)
@jigspatel1988 2/ Selling Strangles in Bank Nifty based on Open Interest Data
Don't trade till 9:45 Am.
Identify the highest OI on puts and calls.
Check combined premium and put a stop on individual
Thread on
— Jig's Patel (@jigspatel1988) July 4, 2021
"Intraday Banknifty Strangle based on OI data"
(System already shared, today just share few examples)
(1/n)
@jigspatel1988 3/ Open Drive (Intraday)
This is an opening range breakout setup with a few conditions.
To be used when the market opens above yesterday's day high
or Below yesterday's day's
#OpenDrive#intradaySetup
— Pathik (@Pathik_Trader) April 16, 2019
Sharing one high probability trending setup for intraday.
Few conditions needs to be met
1. Opening should be above/below previous day high/low for buy/sell setup.
2. Open=low (for buy)
Open=high (for sell)
(1/n)
Block and bulk deals are large purchases of stocks by investment banks, mutual funds, hedge funds, pension funds, FIIs, and promoters. Tracking block and bulk deals can help give you a sense of what these large players are thinking.
A single transaction where shares more than Rs 10 crores or the number of shares traded are more than 5 lakh is considered a block deal.
Block deals are carried out in separate trading windows. This trading window operates in two shifts of 15 minutes each:
Morning trading window from 8:45 AM to 9:00 AM.
Afternoon trading window from 2:05 PM to 2:20 PM
Block deals happen in different windows to reduce volatility and sudden price movements. Given that they are traded in a separate window, they do not show up on the volume charts.
Brokers facilitating the transaction are required to inform the exchange. You can track bulk and block deals on NSE & BSE:
https://t.co/pwTyzWTnUL
https://t.co/g9BbHiEag3
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