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.

Directionless and Riskfree FNO Trading Strategy

45 sec read

Strategy Selection


 

Strategy Performance by Underlying

Strategy Performance by End-Date

Strategy Summary

Buy 5 Lots of OCT 5200 CALL : 66.60
Buy 5 Lots of OCT 4800 PUT : 92.00
SELL 5 Lots of NOV 5000 CALL : 220.60
SELL 4 Lots of NOV 4800 PUT :  155
Buy 1 Lot of Nifty Future at CMP: 4967

 
Position Will be Closed on or Before OCT,2009 Expiry
 
Maximum Loss Risk Involved in the trade  : 0.07% i.e Rs 250
Maximum Profit Potential : Infinity
Return if Nifty remains unchanged : 6.74% i.e Rs 23,311
 
 

During OCT Expiry

If Nifty closes at 4300 – Profit Rs 820×50
If Nifty closes at 4400 – Profit Rs 802×50
If Nifty closes at 4500 – Profit Rs 761×50
If Nifty closes at 4600 – Profit Rs 680×50
If Nifty closes at 4700 – Profit Rs 551×50
If Nifty closes at 4800 – Profit Rs 325×50
If Nifty closes at 4900 – Profit Rs 460×50
If Nifty closes at 5000 – Profit Rs 447×50
If Nifty closes at 5100 – Profit Rs 270×50
If Nifty closes at 5200 – Loss Rs -0.09×50
If Nifty closes at 5300 – Profit Rs 144×50
If Nifty closes at 5400 – Profit Rs 263×50
If Nifty closes at 5500 – Profit Rs 370×50
If Nifty closes at 5600 – Profit Rs 471×50
If Nifty closes at 5700 – Profit Rs 567×50
If Nifty closes at 5800 – Profit Rs 672×50

All the above values are approx figures

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 and BankNifty 90 min charts update for 16th…

Nifty turns to sell mode on 90 min charts with trailing resistance coming near to the 5500. Similarly Bank Nifty too in sell mode...
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Nifty and BankNifty 90 min charts update for 15th…

Nifty turns to buy mode with cloud supports coming near to 5460-5470 zone. And Bank Nifty still in sell mode with resistance near 10900....
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Nifty Week End Review

Nifty week end review on daily and 90 min timeframe and Nifty Option Details
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31 Replies to “Directionless and Riskfree FNO Trading Strategy”

  1. Hi, Pls can you eloborate how the maximum loss risk is limited to 0.07% (Rs.250) ??Have you considered commission expenses also??Please reply.. Also please specify which software ar you using for getting option charts??

  2. Commision Expenses are not included in this strategy. Iam using Options oracle to generate this strategy.

  3. @BoopaThe Trade is between 25 SEP 2009 to 29 OCT 2009And trade can be close anytime before 29 OCT Expiry. If Nifty is exactly at 5200 at OCT 2009 Expiry you maximum loss is Rs 250Else Possibly you would be in profit regardless of nifty direction

  4. 5200 we will be in loss.total premium cr. 45500loss in 5200 call(assuming 4800 ce oct rate)=275*50*5=68750.gain in nf=235*50=11750loss in nov 4800pe(assuming 4600pe oct)=40*50*4=8000thus, (45500+11750)-(68750+8000)=-19500correct me if i m wrong

  5. SIR,YOUR GANN CHART STUDY IS OFF THE MARK. YOU RECOMMENDED THAT TATA STEEL AROUND 415 WAS HEADING TOWARDS 300.I TRUSTED AND SHORTED TISCO THAT CAUSED ME GREAT LOSS.

  6. @SukhlalGANN lines are the Stop Losses for your trade.When tata steel closes below the GANN Support line 420. I thought that probably it would test the next support zone of 300. But it surpassed above 420 i.e above the GANN line which denotes that the stock is out of bearishness. Which probably also makes the trade fail

  7. Some Problem with the strategy tool. Looks some problem with the strategy. Now Option oracle is showing 5% risk 🙁

  8. hi buddy why should you select 5 lots is there any reasons for it?, and buy oct call at 5200,4800 put how did you determine that values and the same as sell at nov 5000 call and 4800 put?

  9. Current Maximum Loss will be -5.64%Return if unchanged will be -1.84%What is meant by Lower breakeven and upper breakeven then?Please advise. Thanks

  10. rajendran can u pls re-correct the bugs cause while implementing it in the directionless-and-riskfree-fno-trading-strategy which u posted on september 2009!! so that like me a small trader and newbie would beniefit a lot!! and earn a decent income !! pls help us by correcting the startergy or if u find its not much correct then pls provide as such type of startergy for regular income !! pls support us!!! thanks ganesh

  11. Rajendran Sir, Can you guide for some Risk free option Strategy which may not give profit for 6 months in a year and give a decent profit for 6 months in a year

  12. Since you have to close positions at expiry of October 2009 series, you would be required to buy back the November 5000 call & November 4800 put which you had sold. How can you project profit or loss from the strategy without knowing what will be price of these options when you buy them back on October expiry?

    Price of these November options will depend on where nifty spot is trading on October expiry. Also it is to be noted that decay in time value of November options may not be substantial during October as whole November would still have to go.

    Please respond.

  13. Rajandran Sir,

    Could you Please Explain the above strategy as it’s sound interesting and will be helpful for all of us. I am trading from last 2Years in F&O some month profit but some in loss, not a stable income actually I am looking for small gain but no risk strategy or Very Low risk Strategy as like you shown above.
    So that I cound earn in any directional mkt without predict.

    Thanks

  14. I read your direction less and risk free strategy I like it now nifty future cmp is 9118 if buy 5 lot of 9300call of current month sell 4 lot 9100 next month buy 5 lot 8900put current month sell next month 8900put 4 lot and buy nifty future cmp 9118 can I use this strategy for profit

  15. what you get after investing 6 lacs is rs 4000 max per month. ie rs 50000 per year which amounts 8%. not worth calling a strategy

  16. can we make profit in f&o without any loss with your risk free f & o trading strategy

  17. I THINK APPROX. 1.5 % CAN BE MAKE EASILY IF WE ARE TAKING AN RISK APPETITE OF 5 % LOSS OF TOTAL CAPITAL AND SOME ARE TAKING IN 75 % AS COLLATERAL WHERE YOU CAN PARK IN MUTUAL FUNDS AND 25 % IN CASH.

    AND SIMULTANEOUSLY WE ARE GETTING DOUBLE RETURN 1.5 % ON TOTAL CAPITAL AND RETURN ON MUTUAL FUND AS WELL.

    APPROX. RETURN PROVIDER ARE AVAILABLE IN MARKET. PERFORMING WELL.

  18. SIR CAN U PLEASE EXPLAIN THE PROFIT AMOUNT AT ANY PARTICULAR NIFTY LEVEL

    Buy 5 Lots of OCT 5200 CALL : 66.60
    Buy 5 Lots of OCT 4800 PUT : 92.00
    SELL 5 Lots of NOV 5000 CALL : 220.60
    SELL 4 Lots of NOV 4800 PUT : 155
    Buy 1 Lot of Nifty Future at CMP: 4967

    Position Will be Closed on or Before OCT,2009 Expiry

    Maximum Loss Risk Involved in the trade : 0.07% i.e Rs 250
    Maximum Profit Potential : Infinity
    Return if Nifty remains unchanged : 6.74% i.e Rs 23,311

    During OCT Expiry

    If Nifty closes at 4300 – Profit Rs 820×50
    If Nifty closes at 4400 – Profit Rs 802×50
    If Nifty closes at 4500 – Profit Rs 761×50
    If Nifty closes at 4600 – Profit Rs 680×50
    If Nifty closes at 4700 – Profit Rs 551×50
    If Nifty closes at 4800 – Profit Rs 325×50
    If Nifty closes at 4900 – Profit Rs 460×50
    If Nifty closes at 5000 – Profit Rs 447×50
    If Nifty closes at 5100 – Profit Rs 270×50
    If Nifty closes at 5200 – Loss Rs -0.09×50
    If Nifty closes at 5300 – Profit Rs 144×50
    If Nifty closes at 5400 – Profit Rs 263×50
    If Nifty closes at 5500 – Profit Rs 370×50
    If Nifty closes at 5600 – Profit Rs 471×50
    If Nifty closes at 5700 – Profit Rs 567×50
    If Nifty closes at 5800 – Profit Rs 672×50

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