Now I have 30L worth of Swing Trading Stocks which I have pledged and got almost 20L margin anytime
I trade with 15L margin and target 3% a month - 45k
I will use this 45k to fund my SIP in Mutual Funds and Pledge them again

This is how my wealth will grow as Mutual funds will be purely for 10-20 years .
If some months I dont make that 3% gains , I will buy lets say by booking some profits . Some months will have higher gains , some months will be less gains .

This is definetly a full time process, requires skill and guidance.
I'm doing this after trading for 2 years in options .

If you are a beginner and want to start this journey under my guidance
You can join the 4 day webinar for algo trading : https://bit.ly/WebinarAlgotrading
Todays Early Bird Fee 5000/- only

any query Whatsapp us http://wa.link/c1jiln

Entire course content

Started a Self Challenge to trade Smaller Account purely on Pledged Stocks Margin
After pledging anytime I have 15L margin
Target is to make Addtional 3% = 45k to fund my SIP

For Beta Expiry Basket follow my Zerodha account
https://verified.sensibull.com/ps/baking-phoenix
This Will be shared in webinar

If you are a trader looking to start passive income from algo trading by pledging stocks then this Algo trading beginner webinar is for you !

You can join the 4 day webinar for algo trading : https://bit.ly/WebinarAlgotrading
Todays Early Bird Fee 5000/- only

any query Whatsapp us http://wa.link/c1jiln

check out the course content

Today Zerodha Market order and Limit orders error
Booked extra loss due to it !
would have been a blunder

After todays fiasco in Zerodha
I have to assume 1L per month will go in errors only .

I'm now getting almost 2% slippages now in everyday expiry regime in algo trading

1% additional loss due to broker errors ( literally all brokers angel , zerodha , ac agrwal etc) have an issue once or twice a month .

I'm using 4 different brokers , only finvasia is running fine without errors .

Are you also facing such issues ?

Few realization in all day expiry regime
Making money will be more tougher
You cannot have max DD under 2% to make 30% a year
Risk needs to be increased to generate similar returns of 2021-2022
Have both buying and Selling combos in your basket
You have to be on toes full time , every other broker is going down .
Try reducing your exposure to 0dte , gamma is highest !

Sure shot ways to lose capital in trading

1. Do fno as beginner
2. Target 100-200% roi , don't have realistic expectations
3. Don't follow risk management and do Option Buying with full capital
4. Overtrade , have greed and trade in Yolo and fomo

When your capital is large enough ( for me 50L+)
These are issues that will reduce ROI in Options trading

1. higher slippages
2. broker errors
3. diversification among strategies
4. hedges to contral max VAR

Anything else you can think of ?

Feb Month Algo Summary
1. 50L Alpha expiry ( Conservative basket ) : +2% 🟢
2. Beta Expiry ( Aggresive basket ) : +3.3%🟢
3. 6L selling : +4%🟢
4. 10L Selling : +1%🟢
5. Cheetah Option buying : -13%🔴
6. Panther Option Buying - 14.5%🔴
7. Wolf Option buying ( Midcap + Sensex ) : +18%🟢
For details Whatsapp us : http://wa.link/c1jiln

Do you think each index behaves seperately and each index should have different Logics ?

Kuch bhi price action

March has Generally been the worst month of trading
March 2023 hit my highest Drawdown ( 6% )
Highest loss in a day 3% ( Leveraged 2x with hedges ) in finnifty due to over confidence
I was at lowest point in my trading life
August 2022 was also a brutal month for algo trading

Just a reminder that tough times pass !

4% a month
1 % a week
0.2% a day

That is 4 points In nifty
That is 15 points in Bnf
That is 20 points in sensex
That is 5 points in finnifty
That is 3 points in midcap

We really don't have to trade near Atm strike prices and target high premiums.
Higher premiums are subject to higher delta
So even in some pullback stoploss are bound to hit.

Most volatility is in morning and major decay starts after 12 .
We can focus on smaller premiums , higher stoplosses and afternoon time to capture these points.

Think about it.

#Learning

Let me give you an example.

Spot price 10,000
1. Midcap atm 10k ce 20 rs and 10k pe 20 rs
Time - 9:30
Market moves up 20 points in morning otm 1 ce from 15 rs goes up to 20 rs ( up 30% )

Pe on put side of 10k will not decay to 10 rs as it still has 6 hours still for expiry ( 50% decay will not happen in morning due to time value ) it will still trade at 15 16 rs ( down 20% from entry) if market again moves down 0.30% or even 0.2% in 1 candle the puts will again inflate to 20 rs -25 rs hitting move sl to cost or original sl

So case 1 in morning volatility Ce stoploss , pe stoploss both hit near Atm.

Case 2 :
Assume same situation happens at 1.30 pm
Spot 10k
Atm
Ce : 10 rs
Pe: 10 rs

Market moves up 0.2%
Otm 1 moves from 7 rs Ce goes 10 rs
10k Pe will now go from 10 to 4-5rs ( 50% decay as for expiry its only 2 hours left ) so to hit stoploss market has to move much more in case of Atm trading .

Case 3 : at 1:30
Trading 4 rs - 5rs options in midcap .

If market doesn't moves you make entire money
If market moves 1 direction you lose on side and make some breakeven money .

If market moves up and goes down you still be able to make money due to rentry ( eventually otm will have to go to 0 , so even if movement doesn't come rentry will trigger due to premiums decrease ) you still will be able to make money or lose some amount depending on situation.
In afternoon you can lose money not due to gamma , but due to M or W movement in small time which will trigger multiple stoplosses .

In all day expiry regime , its better to avoid ATMs and rather trade far otms to avoid getting caught In spikes or reversal
Remember we have 5 days expiry in a week . So our target should not be 1% in day rather control risk , to lose small and make small small money.