Manual

Calculations

Stoploss and Target

They are calculated based on your stoploss profile settings. alt text *(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

  • Intention: We don't get into a larger position sizing due to greed

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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

  • Bought BANKNIFTY 15^th^ SEP 40500 CE x 100

  • Sold BANKNIFTY 15^th^ SEP 40500 CE x 100

    Trade Count: 1

Case 2

  • Bought BANKNIFTY 15^th^ SEP 40500 CE x 100

  • Sold BANKNIFTY 15^th^ SEP 40500 CE x 50

  • Sold BANKNIFTY 15^th^ SEP 40500 CE x 50

    Trade Count: 1

Case 3

  • Bought BANKNIFTY 15^th^ SEP 40500 CE x 100

  • Bought BANKNIFTY 15^th^ SEP 40500 CE x 50

  • Sold BANKNIFTY 15^th^ SEP 40500 CE x 150

    Trade Count: 1

Case 4

  • Bought BANKNIFTY 15^th^ SEP 40500 CE x 100

  • Sold BANKNIFTY 15^th^ SEP 40500 CE x 50

  • Bought BANKNIFTY 15^th^ SEP 40500 CE x 150

  • Sold BANKNIFTY 15^th^ SEP 40500 CE x 200

    Trade Count: 1

Case 5

  • Bought BANKNIFTY 15^th^ SEP 40500 CE x 100

  • Sold BANKNIFTY 15^th^ SEP 40500 CE x 100

  • Bought BANKNIFTY 15^th^ SEP 40500 CE x 150

  • Sold BANKNIFTY 15^th^ SEP 40500 CE x 150

    Trade Count: 2

Case 6

  • Bought BANKNIFTY 15^th^ SEP 40500 CE x 100

  • Bought BANKNIFTY 15^th^ SEP 40600 CE x 50

  • Sold BANKNIFTY 15^th^ SEP 40600 CE x 50

  • Sold BANKNIFTY 15^th^ SEP 40500 CE x 100

    Trade Count: 2