Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Can i trade in options using Ichimoku cloud?

50 sec read

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

Should i give weightage to lower or higher timeframes?

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

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Nifty 90 min charts update – 24 Jan 2010

Chart shown here is 90 min charts of Nifty recently with Buy signal with cloud supports coming near 5697. Position should be reversed if...
Rajandran R
6 sec read

Nifty maintains the hourly sell signal for 19 August…

Nifty maintains the hourly sell signal with resistance place at 5435 zone. And also spot nifty is holding the GANN Support zone 5410-5415 zone....
Rajandran R
14 sec read

5 Replies to “Can i trade in options using Ichimoku cloud?”

  1. dear rajandran,how about selling say,a 5200 put and a 5600 call,n waiting till expiry.if the mrkets take a turnaround in either direction,v cn always change our positions to suit ourselves.afterall markets cannot runaway 300-350 points in a day,unless something unusual happens.
    regards n thanks,rashmi

  2. it wud be really helpful if u give ur views regarding the riskd and rewards of such a position.

  3. Hi rashmi, hope I can help you on this. This trade has maximum risk and maximum profit is (48.85*50)-brokerage. 5648.85 is the upper side protection and lower side protection is 5151.15. Maximum profit when nifty is at 5200. This kind of trade is very very risk, you can make good money for almost 9 to 10 months in a year, but in case if the market moves very volatile on one side(up or down), you may lose all your profit in just one or two months. Try trading options strategies which are based on non-directional movement of nifty. Happy trading options 🙂

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