This is the opposite of Trading Plan 2.
This is another opportunity I found to give me good returns (although it is lesser than under Plan 2) if I had just kept following the strategy given below:
1. Place a sell order at open price - 40 points. If this condition is not satisfied then no trade is executed.
2. Place a buy order at sell Price - 20. If not able to buy then at the close of trading it should be squared up.
For an example:
I have given the share prices of BHEL on the NSE, India from the month of August, 2008 with the trend and when to take the sell (short) decision. The futures trading lot is 75 shares. The average margin for this comes to about Rs.25000/- for one lot.You can observe from the following information that the returns for the month are about 25% of the margin money invested for two months.
| Date |
Expiry |
Open |
High |
Low |
Close |
|
Sell Price |
Buy Price |
Sell Signal |
MaxProf |
MaxLoss |
| 01-Aug-08 |
28-Aug-08 |
1665.00 |
1807.00 |
1662.10 |
1769.95 |
|
1625.00 |
1605.00 |
|
|
|
| 04-Aug-08 |
28-Aug-08 |
1762.20 |
1796.50 |
1711.30 |
1725.75 |
|
1722.20 |
1725.00 |
Sell |
|
-532.50 |
| 05-Aug-08 |
28-Aug-08 |
1724.40 |
1792.00 |
1713.40 |
1783.90 |
|
1684.40 |
1664.40 |
|
|
|
| 06-Aug-08 |
28-Aug-08 |
1820.00 |
1880.00 |
1797.30 |
1829.15 |
|
1780.00 |
1760.00 |
|
|
|
| 07-Aug-08 |
28-Aug-08 |
1821.00 |
1835.00 |
1766.00 |
1781.80 |
|
1781.00 |
1781.80 |
Sell |
|
-120.00 |
| 08-Aug-08 |
28-Aug-08 |
1768.25 |
1808.90 |
1730.35 |
1794.65 |
|
1728.25 |
1708.25 |
|
|
|
| 11-Aug-08 |
28-Aug-08 |
1832.00 |
1845.00 |
1812.60 |
1839.50 |
|
1792.00 |
1772.00 |
|
|
|
| 12-Aug-08 |
28-Aug-08 |
1858.85 |
1858.85 |
1780.00 |
1812.70 |
|
1818.85 |
1798.85 |
Sell |
3000.00 |
|
| 13-Aug-08 |
28-Aug-08 |
1797.45 |
1829.80 |
1786.60 |
1800.55 |
|
1757.45 |
1737.45 |
|
|
|
| 14-Aug-08 |
28-Aug-08 |
1790.00 |
1794.00 |
1709.35 |
1718.95 |
|
1750.00 |
1730.00 |
Sell |
3000.00 |
|
| 18-Aug-08 |
28-Aug-08 |
1714.00 |
1752.85 |
1691.35 |
1704.45 |
|
1674.00 |
1654.00 |
|
|
|
| 19-Aug-08 |
28-Aug-08 |
1690.00 |
1709.00 |
1656.35 |
1692.55 |
|
1650.00 |
1630.00 |
|
|
|
| 20-Aug-08 |
28-Aug-08 |
1725.00 |
1754.50 |
1707.00 |
1745.55 |
|
1685.00 |
1665.00 |
|
|
|
| 21-Aug-08 |
28-Aug-08 |
1730.95 |
1736.50 |
1658.10 |
1672.60 |
|
1690.95 |
1670.95 |
Sell |
3000.00 |
|
| 22-Aug-08 |
28-Aug-08 |
1653.00 |
1730.00 |
1630.60 |
1720.35 |
|
1613.00 |
1593.00 |
|
|
|
| 25-Aug-08 |
28-Aug-08 |
1740.00 |
1758.00 |
1683.00 |
1690.95 |
|
1700.00 |
1690.00 |
Sell |
|
1357.50 |
| 26-Aug-08 |
28-Aug-08 |
1675.55 |
1732.00 |
1671.15 |
1725.05 |
|
1635.55 |
1615.55 |
|
|
|
| 27-Aug-08 |
28-Aug-08 |
1730.00 |
1738.70 |
1678.50 |
1683.65 |
|
1690.00 |
1683.00 |
Sell |
|
952.50 |
| 28-Aug-08 |
28-Aug-08 |
1679.10 |
1690.80 |
1618.35 |
1631.85 |
|
1639.10 |
1619.10 |
Sell |
3000.00 |
|
| 01-Sep-08 |
25-Sep-08 |
1695.00 |
1737.95 |
1659.00 |
1731.35 |
|
1655.00 |
1635.00 |
|
|
|
| 02-Sep-08 |
25-Sep-08 |
1734.90 |
1845.00 |
1713.00 |
1799.50 |
|
1694.90 |
1674.90 |
|
|
|
| 04-Sep-08 |
25-Sep-08 |
1770.00 |
1820.00 |
1741.55 |
1773.65 |
|
1730.00 |
1710.00 |
|
|
|
| 05-Sep-08 |
25-Sep-08 |
1742.00 |
1779.00 |
1730.05 |
1746.40 |
|
1702.00 |
1682.00 |
|
|
|
| 08-Sep-08 |
25-Sep-08 |
1836.00 |
1907.00 |
1796.00 |
1805.05 |
|
1796.00 |
1805.00 |
Sell |
|
-1357.50 |
| 09-Sep-08 |
25-Sep-08 |
1795.00 |
1795.00 |
1743.35 |
1760.25 |
|
1755.00 |
1760.00 |
Sell |
|
-787.50 |
| 10-Sep-08 |
25-Sep-08 |
1747.60 |
1760.00 |
1701.50 |
1723.85 |
|
1707.60 |
1723.00 |
Sell |
|
-2437.50 |
| 11-Sep-08 |
25-Sep-08 |
1695.00 |
1707.00 |
1664.60 |
1676.80 |
|
1655.00 |
1635.00 |
|
|
|
| 12-Sep-08 |
25-Sep-08 |
1695.00 |
1758.30 |
1675.65 |
1704.80 |
|
1655.00 |
1635.00 |
|
|
|
| 15-Sep-08 |
25-Sep-08 |
1651.25 |
1661.25 |
1565.30 |
1631.30 |
|
1611.25 |
1591.25 |
Sell |
3000.00 |
|
| 16-Sep-08 |
25-Sep-08 |
1580.00 |
1670.00 |
1550.05 |
1657.50 |
|
1540.00 |
1520.00 |
|
|
|
| 17-Sep-08 |
25-Sep-08 |
1657.00 |
1675.00 |
1591.20 |
1620.20 |
|
1617.00 |
1597.00 |
Sell |
3000.00 |
|
| 18-Sep-08 |
25-Sep-08 |
1555.00 |
1634.45 |
1506.85 |
1620.00 |
|
1515.00 |
1620.00 |
Sell |
|
-15750.00 |
| 19-Sep-08 |
25-Sep-08 |
1680.00 |
1732.00 |
1658.00 |
1720.95 |
|
1640.00 |
1620.00 |
|
|
|
| 22-Sep-08 |
25-Sep-08 |
1730.00 |
1744.00 |
1682.15 |
1691.60 |
|
1690.00 |
1691.00 |
Sell |
|
-240.00 |
| 23-Sep-08 |
25-Sep-08 |
1675.00 |
1685.00 |
1628.20 |
1635.35 |
|
1635.00 |
1635.00 |
Sell |
|
-52.50 |
| 24-Sep-08 |
25-Sep-08 |
1641.00 |
1686.00 |
1641.00 |
1669.10 |
|
1601.00 |
1669.00 |
|
|
|
| 25-Sep-08 |
25-Sep-08 |
1654.00 |
1665.00 |
1618.25 |
1638.60 |
|
1614.00 |
1594.00 |
|
|
|
| 26-Sep-08 |
29-Oct-08 |
1640.00 |
1640.00 |
1550.25 |
1562.35 |
|
1600.00 |
1580.00 |
Sell |
3000.00 |
|
| 29-Sep-08 |
29-Oct-08 |
1579.00 |
1599.00 |
1447.00 |
1523.00 |
|
1539.00 |
1519.00 |
Sell |
3000.00 |
|
| 30-Sep-08 |
29-Oct-08 |
1475.00 |
1632.65 |
1475.00 |
1594.65 |
|
1435.00 |
1415.00 |
|
|
|
| 01-Oct-08 |
29-Oct-08 |
1611.00 |
1632.00 |
1549.00 |
1601.10 |
|
1571.00 |
1551.00 |
Sell |
3000.00 |
|
| 03-Oct-08 |
29-Oct-08 |
1590.00 |
1634.80 |
1565.05 |
1575.75 |
|
1550.00 |
1530.00 |
|
|
|
| 06-Oct-08 |
29-Oct-08 |
1536.05 |
1553.00 |
1442.35 |
1459.35 |
|
1496.05 |
1476.05 |
Sell |
3000.00 |
|
| 07-Oct-08 |
29-Oct-08 |
1498.70 |
1528.00 |
1451.05 |
1507.55 |
|
1458.70 |
1507.00 |
Sell |
|
-7327.50 |
| 08-Oct-08 |
29-Oct-08 |
1468.00 |
1501.00 |
1396.35 |
1475.95 |
|
1428.00 |
1408.00 |
Sell |
3000.00 |
|
| 10-Oct-08 |
29-Oct-08 |
1371.35 |
1409.50 |
1291.50 |
1346.45 |
|
1331.35 |
1311.35 |
Sell |
3000.00 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Total |
36000.00 |
-26295.00 |
| |
|
|
|
|
|
|
|
|
Profit |
|
9705.00 |
| |
Sell at Open Price - 40 points |
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Buy at Sell Price - 20 |
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If not executed then buy at close of trade |
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Trade in two lots Margin Rs.50000 |
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