Trade Performance Report for the week ending Nov 30, 2018
We are still fine tuning the algorithm to handle higher volatility. System generated only 4 signals this week.
Our trading rules for short term trades using ATM options are as follows:
- Be very conservative to open an options position.
- 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.
- 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