Inside the mind of a Successful Professional Trader
Hello hello, I am your friend Vivek Bajaj, founder of stockedge and elearnmarkets. professional trading is such occupation that people all around the world think that it is an established occupation everyone is accepting you thinking that you are your own boss and you are making money some trade with a team but some do it individually then they become a trader we can talk to different traders about what they do, so someday we will also do that so it is my honor to call another CA today, let's welcome Mr. Akash Bahety so you have left accounting and now doing full-time trading. It feels like I am reliving my days we will know about all the indices that are necessary for proprietory trading if this happens then it is great. Today I will focus on the numerical part I was not able to do an MBA like you, but I got into JP Morgans I was able to see the real-time like how they are able to take the trade It's a different market, I stayed in Singapore for 8-9 months I never got the chance to make a loss in the market so let's move ahead and you have the presentation so I will make you the presenter It is not that I am doing any favors or anything, every line has opportunities you do systematic rule-based trading so that you will explain today In the long run, you will see that options selling is more profitable and theta is in your favor some sort of spread, some sort of hedge fund, so it is not absolute risk whatever spread you are making you need an idea now I understood what you were trying to say at that time why people call it hedge funds. That's because people keep a position in these funds
this is a very easy tool you can also make it manually try to understand this through baby steps, I think if someone understands this they can learn share Bazar really well it is said most of the time that 1 standard deviation data is equal to this much it shows the probability that it will be a loss or a profit so when you are making the spread you also do the opposite most of the time I will try to explain this in common language suppose this is the Indian cricket team this curve you are seeing friends can be used for betting anything so you are saying that one is deviation rate and one is probability risk that's why we use this concept a lot the probability gets favorable when you do this if you want to trade then there are many sources like stockedge for backtesting and you have brought that discussion today for us the expiry for buy and sell will be similar but the stock prices will differ I sold a call for 345 and bought a call for 145 there are two types of vertical spread, credit spread, and a debit spread if your position falls down in the evening then you won't be able to sleep at night and if you want to get into the market then this is the best tool we are taking it from home so it will be a credit spread the call was around 350 and the lower call was close to and the new followers are approximately 145 when we want to make bearish positions then we make call spread the maximum lot amount is 310 rupees my maximum benefit is 190 rupees but sir you will say that it is not right this is the maximum profit I can earn so we will sell the expensive put and buy the cheap one so what is the maximum loss and profit I am saying the opposite I will get maximum loss from the spread this is the probability diagram and if you understand then it is the best and its probability is 0.30% and to check my loss I will play with probability so I have a defined gain that I will lock When I was in school I used to think what was the use of studying all this the topic that needs to be covered and what I studied was share market there was no rain and only drought due to which the sugar was impacted you always know that what is your maximum loss and your maximum profit if overnight only there was an adverse change and there were huge losses and we have to know that this is the maximum loss with 1000 points if it was 9:15, then maybe it will be panic selling, which we have also done the theta always works in our favor and the spread is versatile the calendar gets covered and the second point people think that option sellers use a lot of money it becomes a disadvantage that such a lot of money is needed I sell my option then, so if I sell my spreads instead then I am taking the lot if you go far it will increase or decrease? we have limited risks so it covers that only and we thought what we will do with this money? such a lot of money was emptied you should take the amount that is suitable for you so you all will question and with all the brokers it is all the same this will be called algo trading right? it is not the normal system you can also do it manually it is not very difficult you won't be able to do scalping but swing trading is easy but yes if someone wants to do swing trading in options then they can do it very easily similarly, in spreads, the margin value is very less so much information retail traders are getting that they can make the best use of it there is a famous quote that if I tell you then I would have to kill you the issue is that the traders are coming so our EMI dependence is decreasing they are buying a high-value premium and they are selling a lower value premium in a debit spread your margin requirement is very low we have tried to tell you that options selling is profitable but blinded options selling should not be done many good traders have been my mentor we can start with white board, which is very basic anything can be an automative way of doing things risk of the strategy, the drawdown, and the profit has to be considered Gama, delta, and theta need to understand how it is affecting the strategy level the probability is 80-90%, the delta also comes at the moment you have to know where was the maximum time spent, which is an added advantage we can optimize all our parameters and play with our data what is the Sharpe ratio of your strategy web scrapping is that we have to bring the data on its own and so the strategy can be played the goal of testing is to record all the findings when I am talking about retail expiry, then I have seen 12-13 expiries we will check what is right and what is wrong in the strategy and then we will sign off we have done backtesting and we will see what is our strategy this is the snapshot of my intraday code everyone wants to know that how is that system tested this line is very important that whoever is doing intraday trading, should do backtest if 15 minutes are gone then it should be adjusted this is the time logic that after 9:25 the position should be taken we sort it and then cover it, so by 3:15 we need to sort and cover it it will take 2-3 months, then you can take AMI broker there are many courses and classes available for that, even I learned from someone this is a little high language, that you will learn in few months that should be the position sizing and we can check the parameters this is one of the codes that we are working on multiple time frame if you see nay trading booth then it says that you need to work on multiple time frames then we can see the opportunity for the minor time frame the percentage is really good despite that, there could be a big change in the annual result the ratio that we discussed can also be used on other platforms I am getting really inspired by this so I will start learning this so I have to think about how my entire portfolio will look so when the software is working it looks like this how much trading do you do in a day? in the US this trading has started using nanotechnology firstly, they have to manage their risk and reduce the risk when someone thinks they are too clever in terms of money then they are dumb so this is about strategy, but if someone doesn't have that technology then how should they focus on the strategy so scalping is only possible if you are using technology and if they are trading then they should trade more on options so now we will use deploy so based on the strategy we decide which platform to go for and then execute so this is our software and it is not available for retail the other variables should also be considered we will check the system and then monitor that system The way to appreciate this is to do a live and people will comment it was a great presentation, I really enjoyed it. It felt like I am giving the presentation the world is like you can do a 7-year journey in a year
2021-09-03 02:58
