Calculations
Stoploss and Target
They are calculated based on your stoploss profile settings.
*(Default Risk/Reward: 1.5)
Position Sizing
- Let’s start trading with Risk/Trade 4%.
- You can risk 4% of your capital in a single trade.
- Stoploss and Target for an individual trade are calculated based on stoploss profile settings.
- Upon buying NIFTY 20^th^ APR 17800 CE option, following window appeared.
- Target Price is indicative in nature, if price reaches that level, trade won't be exited automatically.
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Quantity can be reduced manually, if quantity is increased Buy button will be disabled
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Intention: We don't get into a larger position sizing due to greed
Trade Management
- When all positions of a strike price are squared off trade is complete.
- Trade counting is segregated based on strike price.
- Let's understand the logic of trade counting by using different trading cases as follows:
Case 1
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Bought BANKNIFTY 15^th^ SEP 40500 CE x 100
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Sold BANKNIFTY 15^th^ SEP 40500 CE x 100
Trade Count: 1
Case 2
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Bought BANKNIFTY 15^th^ SEP 40500 CE x 100
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Sold BANKNIFTY 15^th^ SEP 40500 CE x 50
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Sold BANKNIFTY 15^th^ SEP 40500 CE x 50
Trade Count: 1
Case 3
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Bought BANKNIFTY 15^th^ SEP 40500 CE x 100
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Bought BANKNIFTY 15^th^ SEP 40500 CE x 50
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Sold BANKNIFTY 15^th^ SEP 40500 CE x 150
Trade Count: 1
Case 4
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Bought BANKNIFTY 15^th^ SEP 40500 CE x 100
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Sold BANKNIFTY 15^th^ SEP 40500 CE x 50
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Bought BANKNIFTY 15^th^ SEP 40500 CE x 150
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Sold BANKNIFTY 15^th^ SEP 40500 CE x 200
Trade Count: 1
Case 5
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Bought BANKNIFTY 15^th^ SEP 40500 CE x 100
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Sold BANKNIFTY 15^th^ SEP 40500 CE x 100
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Bought BANKNIFTY 15^th^ SEP 40500 CE x 150
-
Sold BANKNIFTY 15^th^ SEP 40500 CE x 150
Trade Count: 2
Case 6
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Bought BANKNIFTY 15^th^ SEP 40500 CE x 100
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Bought BANKNIFTY 15^th^ SEP 40600 CE x 50
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Sold BANKNIFTY 15^th^ SEP 40600 CE x 50
-
Sold BANKNIFTY 15^th^ SEP 40500 CE x 100
Trade Count: 2