Paper Trades Report for Sep 19, 2018

Daily Report Cover Sep 19

Market was within trading range today. This condition is ideal for our short term ATM Call trading System. System generated 6 Buy to Open and 3 Sell to Close signals.

 

Following table gives the trade details.

Trade Report Sep 19

Our trading rules for short term trades using ATM options are as follows:

  1. Be very conservative to open an options position.
  2. Once a position is opened, be very aggressive to close open position to avoid value erosion due to theta decay or Implied Volatility (IV) collapse.
  3. Position close signal gets generated based on following criteria:
    • Day’s high price is hit OR 
    • When accumulated profit is > 20% OR
    • End of the day OR
    • If held overnight Followng day high Irrespective of gain/loss
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