Question : Can i trade in options of these 50 scrips using cloud only , will it be profitable to do so ? should i use hourly or daily charts for the same .? thanks in advance. – Jitin
Reply : As of now i hadn’t backtested with options. Right now iam exploring it with nifty futures(min nifty too) and studying the risk level
when compare to profits. Though the strategy is boring and simple so far the strategy is money making.
If you want to trade based on Ichimoku alone in futures there is one more extra rule its nothing but choosing the right timeframe for your trade and limiting your profits by booking it w.r.t to the timeframe.
And one more thing Time frame should be taken based on your profit requirement… The risk in the trade will increase if you are opting for higher timeframe. I request you to follow the below readings for more clarity in opting a time frame
For Example if you are trading with 5 min charts you should limit your profits to 10pts in nifty by booking your future contract
For 15 min charts – 15-20pts
For hourly charts – 50-75 pts
For Daily Charts – 150-200pts
More over Stop loss is the cloud itself. Which needs to be followed and respected each and every time