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http://drupeenterprises.com
http://stockmarketq.blogspot.in/2016/01/tat-method-invention-for-dynamic-markets
.html
http://bradleysiderograph.com/turn-dates/nse-nifty/
https://ashismaji.wordpress.com/
https://www.youtube.com/watch?v=XlWPTmk8f3o
http://www.stableinvestor.com/2016/01/i-want-to-interview-you.html
http://zerodha.com/z-connect/zerodha/why-zerodha/opentrade-learn-following-startraders
http://www.vfmdirect.in/2016/01/start-investing-for-long-term.html
http://www.vfmdirect.in/2015/12/difference-between-scale-trading-and.html
http://www.investopedia.com/university/fiveminute/fiveminute8.asp#ixzz3vOhW2Ms1
http://www.chartkingz.blogspot.in/
http://www.chartkingz.blogspot.in/2016/01/hyderabad-workshop.html
I found that trading hourly breakout (for Intraday) is rewarding. Thanks for gui
dance, I started some strategy
But request your inputs to fine tune this...
Method:
1. Wait for 1st hour candle to complete.
2. If any of the following candle closes or breaks above the opening candle high
then LONG with low of that Breakout candle as SL.
3. If any of the following candle closes or breaks below the opening candle Low
then SHORT with High of that Breakdown candle as SL.
4. If it does not breaks either high or low then market is in sideways movement,
so do nothing.
5. Trail up SL to next candle high or low depending upon the trade and cover at
close..
Is it ok or any other filter or modification reqd...???
This is fine.
However develop a habit of watching how breakouts are dealt with by outsiders.
By an outsider, I refer to people who wait for a range breakout only to take a r
everse trade.
For eg., someone may feel last 2-3 day's high or low is critical..
these people will do nothing intraday but will jump in breakout happens.
Namasthe Master & Blog-mates.

Wish all Long life, Good Health, Peace & Wealth.
Day High :7428.50 Day Low : 7327.60

NS > Hr.JNSAR @ 7355 & < Todays JNSAR @ 7456
Continue SHORTs initiated around 7887 with SL @ 7456
Part book SHORTs around 7387 / 7437.
NS above Day Pivot @ 7309.
Note : As JNSAR SHORT is 14 days old, no fear of whipsaws.
Strict SL is a must for all trades whether Short or Long.
Day High : 7428.50 Day Low : 7327.60 Range : 101 Points Day Pivot : 7309 Hr Pivo
t : 7414
NS Currently hovering around 7411.
NS < Hr. Pivot @ 7414 & above Day Pivot @ 7309 indicating WAIT mode.
NS in BOD mode (changes 2 SAH < 7321) in Day T/F.
Strength continues Above Dev. DEMA @ 7380.
Weakness returns below Dev. Hr. LEMA @ 7386.
SAH = Sell And Hold
BOD = Buy On Dips
NS in BAH mode (changes 2 SOR < 7407 ) in Hour T/F.

NS changes to SAH < 7383 in Hour T/F.
BOD = Buy On Dips
SAH = Sell And Hold

BAH = Buy And Hold
SOR = Sell On Rises
NS breaks cluster Resistance1 @ 7336-7364 mentioned in Trade Table & nearing R2@
7420.
Weak below 7321 (Dev. DLEMA) , Strength above 7374 (Dev. Hr. HEMA).
NS crossed ND sirs Sell zone @ 7344 to 7377.
Broke above 7384. Reaching 7528 ?
Will Week Trend come to rescue of Bears ?
Next 230 minutes will decide.
NS breaks cluster Resistance1 @ 7395-7413 mentioned in Trade Table.

Weak below 7406 (Dev. DLEMA) , Strength above 7418 (Dev. Hr. HEMA).
NS in ND sirs Sell zone @ 7409 to 7438.
Will it go down to Buy Zone @ 7293 to 7264 ?
Next 205 minutes will decide.
Nifty trading range for : 22 - January - 2016

Previous close : 7,276.80
Buy Zone : From 7209.8 to 7176.3
Breakdown below : 7169.6 (stop loss for intraday longs)
Breakdown target : 7156.9
Sell Zone : From 7343.8 to 7377.3
Breakout above : 7384 (stop loss for intraday shorts)
Breakout target : 7528.6

Breakout above : 7411.7 (stop loss for intraday shorts)

Last traded price : 7,338.40
Breakdown occurred below 7342.3
SL for short positions : 7,470.90

Breakout occurred above 7443.8
SL for long positions : 7340.3

Buy Zone : From 7293 to 7264
Sell Zone : From 7409 to 7438

Breakdown occurred below 7357

Buy Zone : From 7387.3 to 7362.05
Breakdown below : 7357 (stop loss for intraday longs)

Breakdown target : 7415

Buy Zone : From 7486.3 to 7461.05


Buy Zone : From 7515.9 to 7492.65





Buy Zone : From 7521.35 to 7500.1

Buy Zone : From 7521.35 to 7500.1


Buy Zone : From 7558.85 to 7537.6




Buy Zone : From 7903.35 to 7881.85
Nifty trading range for : 31 - December - 2015

Buy Zone : From 7853.25 to 7831.75

Buy Zone : From 7885.95 to 7864.45


Buy Zone : From 7880.15 to 7857.65

Buy Zone : From 7812.55 to 7788.3

Buy Zone : From 7817.45 to 7793.2



Buy Zone : From 7717.45 to 7695.2


Buy Zone : From 7806.35 to 7787.35


Breakout target : 7724




Buy Zone : From 7826.15 to 7807.15
Nifty trading range for : 27 - November - 2015

Buy Zone : From 7835.3 to 7811.05

,
(Bear Grip)
50
7755
(Resistances) : 7771-7990, 7815

, 7755
(Support
.
50
7749
7714
, 7714
7769
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Hello Rashmi,
I see that you are searching for the perfect method to trade using JNSAR. Please
find below a detailed response sent to one of the JN Friends 4/5 months back.
There are multiple methods members present here trade using the JNSAR trading me
thod. When JNSAR was introduced by Ilango sir..it was a plain vanilla method wit
hout filter and any confusion. Closing above todays JNSAR stay long. Closing belo
w todays JNSAR stay short. During the dayon trigger of JNSAR take the trade..above
it longbelow it short.
Its US who diluted the system loading it with humonguous amount of confusion wit
h filters.
Chose your methodtrade using it consistently
=============================================
Good Morning ,
Have been on the blog for close to 3 years now and have seen traders applying th
eir own set of rules/guidelines to trade based on JNSAR ( Nifty alone ). Below m
ethods most of them. You can chose what is best for you / your style / comfort l
evel. What ever you chose ensure that you stay TRUE to your method and never dev
iate. I can firmly say thatwhich ever method you chose follow profit would be any
where between 50% to 80% + in 1 year.
1. Trade using plain JNSAR ( no filters ) : Go long above JNSAR number OR Revers
e and go short below JNSAR during the day and Carry your positional in the side
of JNSAR based on the closing above OR below daily JNSAR. Advantage is that, the
oretically you dont incur loss during Intraday whips on the JNSAR number and loss o
nly Gaps against the SAR the next day. This was the PRIMARY method introduced by
Ilango sirusing plain JNSAR. Next all methods are derived by JN followers.and inc
reased the methods complexity.
2. JNSAR using filter : Folks when trading with plain JNSAR with no filters, wer
e severely whipsawed in extreme intra-day phases and wanted to improve OR protec
t trades in the direction of SAR. Hence started applying filter during the day s
ay0.4% of Nifty value ( base @ 5000 = 20 points ) . These 20 points were applied
1 on one side only starting with the day JNSAR is triggered and then the next 2
days. Example : JNSAR triggered at 5417 to shorts, hence long SAR will be 5417 +
20 points for today. You go long at 5437 and go short at 5417 for whole of day
1. 2nd day JNSAR at 5430. Long SAR = 5450 and short SAR is 5430. Day 3 JNSAR at
5440. Long SAR is 5460 and Short SAR is 5440. Carry trade based on daily only.
3. JNSAR using filter for both sides : Next version is members applying JNSAR wi
th filter on both sides.Example : JNSAR triggered at 5417 to shorts, hence long
SAR will be 5417 + 20 points for today. You go long at 5437 and go short at 5397
for whole of day 1. 2nd day JNSAR at 5430. Long SAR = 5450 and short SAR is 541
0. Day 3 JNSAR at 5440. Long SAR is 5460 and Short SAR is 5420. Carry trade base
d on daily closing.
4. JNSAR using filters ( one side OR 2 sides ) and managing it for day closing u
sing next days JNSAR. Members further innovated the method that if Nifty is closi
ng below ( if in longs ) OR above ( if in shorts ) tomorrows JNSAR we should chan
ge our position / align with JNSAR direction for tomorrow.. Example, Nifty is cl
osing at 5420 and todays JNSAR is 5417 but tomorrow;s JNSAR is 5430. Based on tod
ay, its Long. Based on tomorrow its Short.
These are broadly the JNSAR trading methods adopted by JN blog members but inevi
tably the confusion remains in the 4th scenario how positions should be managed
using todays and tomorrows number. This is where members have confused themselves
ON what SHOULD have been done previous day when there is an adverse GAP of 100+
points against the SAR. 2013, we had a 130 point gap down against JNSAR where pr
evious day price closed above previous day JNSAR but below next days JNSAR and op
posite of this also happened in this year starting.
Transcript
https://www.dailyprofithunter.com/live-training/live/video.aspx
First a little about me. I started my career working at a large global investmen
t bank. This was in 2007, and I work in the currency derivatives team. While I w
as there, I learnt the sophisticated trading strategies, that they used to make
consistent profits. These are not the strategies that most retail traders use. T
he type of strategies the banks used was very consistent. In fact we rarely lost
money. In a given week, we were probably make money four out if five days. And
over the course of a year, we would not lose money in a single month. That was e
xtremely rare. And the type of strategies that we were using at the bank were ve
ry different to what most retail traders used. These strategies were consistent,
they didn t have huge winners but they made money regularly and they made money
over time, all the time.
After leaving the banking industry, I partnered with equity master, this was in
2010, and our first product offering was called Lucrative Derivative Report for
those of you who may remember it. And then soon afterwards, we founded the Daily
Profit Hunter. The Daily Profit Hunter really cemented our goal and our vision
and this vision was to bring profitable trading opportunities to retail traders.
So right now we have two products at the Daily Profit Hunter. We have Alpha Tra
der which is authored by me and then after that we launched Swing Trader which i
s authored by my excellent colleague Apurva. Following these two products, I now
wish to bring you our latest endeavor and this is the income at will strategy.
So remember this is all about bringing profitable trading opportunities to retai
l traders. These are trading strategies and opportunities that really the profes
sionals use primarily and we want to bring it main stream. We want everyone to h
ave access to these.
So in addition to working at the Daily Profit Hunter, I am also pursuing a PhD.
I have been doing that for about 3 years now and it is through my research that
I discovered the income at will strategy. So I do research at primarily algorith
mic trading. My main area is finance but I specifically focus on using historica
l data to generate profitable trading strategies.So over the last over a year an
d a half or so, I have been heavily focused on about options, learning how to tr
ade options, and how to make consistent profits from doing so.
Now I would like you to imagine a trading strategy that does the following four
things. first imagine a trading strategy that almost always makes money. Imagine
a trading strategy that generates income at extremely low risk. Imagine a tradi
ng strategy that profits regardless of market conditions. Imagine a trading stra
tegy that earns you income at will. This is very much like the strategies that t
hey used to use at the banks. If the market is volatile we make money, if the ma
rket is calm we make money, if the market is go up we make money, if the market
is down well you get the picture. That is the goal with this Income At Will stra
tegy. A trading strategy that meets these four criterion.
So I tested this strategy using historical data. Suppose you start with an inves
tment worth...in late 2010, you can see what would that have been worth over the
course of the last five years. The draw downs are almost nonexistent. These are
a few of them; there are a few tiny little drops. There are lots of very very s
mall ones, but you can see the trend is just up. It is almost like a straight li
ne. This is what I mean by strategy that is just so consistent, and it is low ri
sk. Look at the drawdown s they are practically nonexistent. This is a that stra
tegy generates consistent income at extremely low risk. I really think that this
picture is more about how low risk the strategy is, rather than how much money
it is going to make. Of course it is going to make a lot of money. You are start
ing with a 100 and you are going to end close to 220 over the course of five yea
rs.
So here from statistics, to help you understand, what is behind that graph, so t
his strategy, the Income At Will strategy is profitable from 202, are out of 254
weeks. So roughly four out of five weeks it is profitable, it is profitable 58/
59 months...remember I told you the professionals, every single month they would
make money and that is what this strategy does. And it is profitable for five y
ears in a row. And to the actual numbers, we generate a 25% average annual retur
n on capital, that is virtually riskless.
So of course you are probably wondering how do we of this. Allow me to introduce

options. Now if you have been reading our Daily Profit Hunter articles over the
last couple of weeks, you will know that we will be talking a lot about options
. It turns out options are massive market. It is actually bigger than the stock
market. And here is one statistic that I think really encapsulates how big this
market is. The market Nifty index options, and that is preview, that is what we
trade. The market Nifty index options, is the largest options market in the worl
d. You heard that right; it is the largest options market in the world. It is la
rger than the options on the S&P 500 index in the US which is the largest stock
market in the world. So there is more option trades in India on the Nifty than t
here are on the largest US exchange. So that is how big this options market is.
So what are options? Options are derivative securities that have limited risk an
d unlimited reward potential. So if you buy an option, you pay a premium and sup
pose you buy a call option, you will make money if the underlying stock goes up,
if the stock goes down, you will just lose the premium you paid. The risk is li
mited. With the put options you are going to make money if the stock goes down,
if the stock goes up, you are going to lose the premium you paid, again limited
risk. Now if you are not familiar with how options work, I suggest that you go t
hrough some of the Daily Profit Hunter articles that we published over the last
two weeks, have focused a lot about what options are and how they work, so they
are very useful if you are not familiar with this terminology. But trust me it i
s not that difficult. What I love about options is that they provide us with the
wealth trading strategies. And these are strategies that cannot be probably be
executed with just futures or stocks. Going back to that graph, you saw how stea
dy the income increase was. You saw how steadily we made money. Your stock portf
olio is not going to look like that, your future in stocks are futures, your equ
ity curve is not going to look like that. You are going to have big drawdown, it
is inevitable. But with options we can do better.
So what do we do is that we generate income with options. And here is a big secr
et that all professional option traders know. Options are overpriced. What this
means is that options cost a little bit more than what they are actually worth.
Now I am not going to go why this is the case, I will come later. But what this
means is that you can make consistent profits by writing options, writing and se
lling options is the same thing, so when I say write an option, I mean sell an o
ption. You can make consistent profits by writing options instead of buying them
. And what the Income At Will strategy does, is we write option in the Nifty ind
ex. But we do in a way that generates income with minimal risk. At first glance
you might be thinking that writing options is a risky proposition. At the first
glance you are probably right. If you just go out tomorrow and write a call opti
on in the Nifty index, you are exposing yourself to a lot of risk. But like I sa
id options provide us with a wealth of strategies. You can trade spreads, you ca
n trading straddles, strangles, all kinds of options strategies and do so in way
that minimizes risks and that is what the Income At Will strategy does. We writ
e option in the Nifty index and we generate income with minimal risk.
This is a trading strategy that generates an income by writing options in the N
ifty index. This chart here is the cumulative return of the equity curve from th
e Income At Will Strategy. The Income At Will Strategy is extremely low risk and
it generates solid consistent returns. It is like a straight line going up. The
re are a few loses but they are typically small and they are nothing compared to
the overall trend. So last time I talked about my motivation for bringing you t
his strategy, and I talked about the big picture about this strategy; the low ri
sk the consistent returns.
Today we are going to dig a little bit deeper. We are going to dig into how exac
tly this strategy works. The nuts and bolts of this strategy.
How does the Income At Will Strategy work.We write the options on the Nifty inde
x to generate income and I developed a proprietary algorithm to do the following
. First it scans the market to detect which options are then most overpriced. I
told you, that options are generally overpriced. Today I will tell you a little
bit more about that. But what we do is we look at all the available options on t
he Nifty index, we find out which ones are the most overpriced. Next we choose a
call and put combination that minimizes risk. And finally we sell both the call
option and the put option at the same time. Once we find the most overpriced op
tion, we are going to sell a call and put option at the same time. We are going
to do so in a way that minimizes risk and by minimizing risk I mean that the gai
ns from the call would offset losses from the put and vice versa. And we are goi
ng to sell both of these options together. It is called either a straddle or str
angle. So we are going to be doing strategies that are straddles and strangles.
The main difference from the usual strategy is that in our case we are going to
be holding them for very short periods of time. And we have a method to determin
e what is the right straddle or strangle to sell. Which are options are the most
overpriced.
Now let us look at actual trade examples. Here is the first trade example and th
is is an example of a trade that did very well for us. Trade was opened on the 8
th of June and closed on the 10th of June, so two days later, this is all this y
ear so this is recent trades. Over that time the Nifty index hardly moved, it in
creased just by 9. So this was the day we did very well. So let us look at what
exactly happened? So on the 8th of June we sold a June Nifty 8,000 put, so this
means we sold the put option on the Nifty index with strike price of 8,000 that
expires in June, at the same time we sold the call option on the Nifty index wit
h strike price of 8,200 also expiring in June. So remember since we are selling
options we make money if the options fall in price. So the put option we sold it
at 101.65 and when we closed it we bought it back at 79.75 and this made us a p
rofit of 21.9. With the call option we sold it at 81.9, two days later it was tr
ading at 62.85, we closed the position and that earned us 19.05. And as I said t
he Nifty index hardly moved over these two days and that is an ideal scenario fo
r us. So the total profit from this particular trade is Rs 5,142. This assumes y
our trading two lots that are worth 75 and the transaction costs are included. S
o transaction costs are Rs 1,000 rounded for both the trades. That is actually a
conservative estimate so that is mainly to cover the bid ask spread as well as
the commission that you would pay. But like I said it is on the high side so cha
nces are you will actually be getting a little bit more than that.
Let us look at another trade. So here was trade that also made us money but less
money than the previous trade. So this trade was open on the 1st of July and cl
osed the following day the 2nd of July so we sold a July Nifty 8,300 put. So thi
s was a put option on the Nifty index with a strike price of 8,300 expiring in J
uly and then we sold a July Nifty 8,500 call. So this is a call option on the Ni
fty index with a strike price of 8,500 expiring in July. So we sold the put at 1
17.25 and closed that position at 84.95 . We sold the call at 86.9 and closed th
at out at 102.6 this gave us a gain of 32.3 on the put and the loss of 15.7 on t
he call. So altogether including transaction costs we make a profit of 1490 from
this trade. That I as good outcome. Always the period Nifty increased by 58 we
just a fairly significant move sometimes a move like that will result in gains,
sometimes it will result a loss. It does depend on which combination of options
you are holding. So here is an example that lost money for us. We opened this tr
ade on 8th of July and closed it on the 9th. so we sold the July Nifty 8,400 put
. We sold that at a price of 115.25 and then we closed the trade at 148.55 givin
g us a loss of 33.3. We also sold the July Nifty 8,500 cal, we sold that at 92.6
5 closed that at 73.5 that gave us a gain of 19.15. And over this period of Nift
y index what was down by 61. So for this trade the losses on the put were greate
r than the gains from the call so it made a loss of 3,123. Now in both this exam
ple and the previous one you saw that eh gains from the one option of the offset
losses from the other. They were moving in the opposite direction. So in this c
ase the put loss money call made money, previous trade it was the opposite and t
he t is kind of how this low risk part of it is generated. That gain from one te
nds to offset losses from the other.
So let us look at how the strategy did this year. Supposing you started with a 1
0 lakhs portfolio and traded two lots, these are the kind of returns you would h
ave earned in the first six months of this year. So in January you earned Rs 14,
000, in February 44,000, in March 36,000, in April 32,000, in May 28,000, in Jun
e 32,000. So you can really get an idea of just how consistent this strategy is.
In this case we have made money in all of these six months. Some months are mor
e some months are less that is going to happen but consistent gains. So it is re
ally attractive. I think I am really happy with the way this trading strategy ha
s turned out. Just because I really like the fact that it is so consistent. What
you will notice here and you saw this in the trade examples, each trades the ga
ins and losses are quite small. We are talking of Rs 5,000, Rs 3,000, Rs 1,000 s
mall gains and losses on a daily basis. But it adds up and you can see that here
, it adds up. Again there are no home runs there are no sixes, there are no big
winners. This is steady singles, ones and twos and you know, making a century fr
om that. consistent steady returns.
So I would like to spend a few minutes talking about why options are overpriced.
So this strategy sells only options. And it turns out that this is generally th
e most profitable thing to do. So let us think about why options are overpriced
to begin with. And actually it is very intuitive. So we know that, if you buy an
option, you face a limited risk, unlimited rewards scenario. An option buyer ca
n only lose a premium paid but can potentially make unlimited reward. Option sel
lers on the other hand face the opposite scenario. Option sellers face limited r
eward potentially unlimited risk. So it is very clear the option sellers are tak
ing more risk than option buyers. One thing that I true in all financial markets
is that you get compensated for taking risks. And when it comes to options, it
is option sellers that are the ones taking risk and they are compensated for doi
ng so. So how does this compensation occur? A compensation comes in the form of
overpriced options. Alternatively this means that the majority of options lose m
oney. So if you just look at the prices of a bunch of options today, on an avera
ge most of them will lose money. Some will gain, some will lose but if you were
to take the total gains and losses from all the options over time you will find
that they consistently lose money. So that is the underlying rationale for why t
his strategy works.
Now I know option selling can seem daunting. The idea of unlimited risk. But tha
t is why we develop this Income At Will Strategy because we are able to do this
at very low risk. By trading both call and put options and by trading regularly,
trading every day or every two days, we are able to keep the risk really low. S
o that is how we can take advantage of overpriced options.
Option Master is an e-learning course that teaches you exactly how this strateg
y works. So in addition to creating this strategy I have also created an e-learn
ing course. And in this course I am going to teach you how this strategy works a
nd not just this strategy, I am going to teach all about options and how to make
money trading options. Here is the best part. No prior experience is required,
just an enthusiasm for learning to trade options. So this is going to go from be
ginner to professional, if you had experience that is great, then you will be ah
ead of the curve, if you have no experience with the options that is completely
fine. This course is going to take you from beginner to professional.
So the Option Master course is divided into four modules. And each of these modu
les takes you through the steps that you start as a beginner and end as a profes
sional. So the first module is the Beginners Guide Tool Options. This is where w
e go through how options work and the various types of training strategies you c
an do with options. Next we go onto Intermediate Options Trading. Here we go a l
ittle more in depth. We learn about the breeks, we learn about the implied volat
ility. Again if you have not heard these terms don t worry about it. but these a
re important, it is with these things and with these tools that you can make a l
ot of money from options. The third module is Advanced Income Generating Strateg
ies. So here we are really use our arsenal that we built up to learn how to gene
rate income and do it in a way of low risk, that is the advanced portion. Final
module is the Professional Options Trader. The last one is the final leap, the f
inal leap to the point where you can actually create any option trading strategy
you want to whatever level of sophistication you want and really learn not just
how the Income At Will Strategy works but how to create a strategy that is as g
ood as that one or maybe even better.
Final part of the Income at Will Master Series.

Income at Will is a trading strategy where we write options on the Nifty index
to generate income and then our back test results we ve generated a 25% average
annual return on capital. This is fantastic, because we re able to do this with
extremely low risk and how do we do this? Well, I ve developed a proprietary alg
orithm that scans the market and analyzes all the options trading on the index a
nd it finds which options are the most overpriced and then we sell those options
and then from there we generate the consistent steady returns. And just a littl
e bit more recap on our back test results, so in our back test which spanned abo
ut five years we were profitable 202 out of 254 weeks, so that s about 80% of we
eks. We were profitable at almost every single month and profitable five years i
n a row. So, as I said a 25% average annual return on capital that s virtually r
iskless. Now one thing I d like to clarify, what do I mean by return on capital.
Return on capital is not the margin you need for the individual trades, this is
not return on margin. This is your return on the full portfolio. This is your r
eturn on the portfolio, the part of money that you allocate to this particular s
trategy and that s the number we really care about.
Here again is the cumulative return from the back test of the Income at Will tr
ading strategy over the last five years. As you can see here, it s low risk cons
istently upwards and it s really an ideal trading strategy and I think there s a
lot we can do with this, there s a lot we can learn from this and it s a fantas
tic opportunity to trade options and generate regular income.
So one interesting question I got, why do we bother writing options when we can
earn similar returns from a stock portfolio? So, as I said we generate a return
of about 25% on capital. Now chances are if you invest in a long term stock port
folio you could probably expect to earn returns in that region where you may exp
ect maybe 20%, 25% from your stock portfolio over the long term. So if that s th
e case then why bother with options in the first place? So there are two parts t
o this answer. The first is that this is not intended to be a replacement for yo
ur stock portfolio. So I am in no way suggesting that you should abandon your st
ock portfolio and do this instead, rather this is a good addition to your overal
l portfolio. It is going to give you returns, it is going to diversify your over
all portfolio, reduce your total risk and at the same time increase your return.
The second difference between the 25% a year from writing options versus the st
ock portfolio is that the drawdowns in the writing options are much smaller. So,
if you saw in our back test results we were profitable about 80% of weeks and h
ere they are every single month. Now that s not going to happen with the stock p
ortfolio. Even if your stock portfolio is returning you 20-25% a year, you are g
oing to have losing months, you re going to have losing years as well. So, by wr
iting options you can actually be able to generate much more consistent returns
and much more consistent income. The downside of course is more work. So when yo
u re trading your long term stock portfolio you make your trades and then you do
n t really have to worry about it, you don t really have to do too much once you
ve bought your stocks, whereas with writing options you have to trade a lot mor
e frequently especially if you want to generate returns like that. So in pitchin
g this strategy I want you to know that it has got great potential to be really
good for your portfolio, but you need to have an interest in trading, it s going
to require you to trade reasonably regularly, I ll talk a little bit more about
that later and you should be prepared for that.
Next question, what are the margin requirements for writing options, how much ca
pital will I need? So the margin for writing options is around the same, is goin
g to be the same as the equivalent margin for a futures contract. So based on th

e new lot size, some of you may already know this,but the lot size for Nifty ind
ex options and futures is going to be going off from next month from 25 to 75. S
o based on the new lot size, which is what we ll be trading, the option requirem
ent for a single contract is about Rs. 50,000, that s for the Nifty index and I
think that s assuming about an 8% margin. So it s pretty sizeable, it s a pretty
large amount of money and how much capital will you need to trade this strategy
, well you certainly need to keep a lot more capital in your account than just t
he margin requirement. The margin requirement is just kind of where you need to
place the trade, but then on a daily basis and you know this if you ve already t
raded futures you may be post additional margin if the trade goes against you an
d so on. So practically speaking I ve been showing you examples of returns assum
ing a 10 lakh portfolio and this is what we recommend for this particular strate
gy, writing options can sometimes lose money if there s a short move in the mark
ets. So you do need to have a trading portfolio that is a considerable size and
our recommendation is that you have 10 lakhs of capital for this strategy. 10 la
khs of capital means you re going to trade two lots at the same time, so for eve
ry contract you re trading two lots and that s what we recommend. Now it is poss
ible for you to do the strategy with 5 lakhs instead of 10 lakhs and with 5 lakh
s you just trade one lot instead of two lots. So these are the numbers that are
important to know. 10 lakhs is our recommended amount and you trade two lots of
each contract when you have a 10 lakh portfolio, 5 lakhs is the absolute minimum
and with the 5 lakh portfolio you just trade one lot and then you can kind of g
o up as well, if you have 15 lakhs you can trade three lots, if you have 20 lakh
s you trade four lots and so on, but we re recommending 10 lakhs.
So another question I got, what is the maximum drawdown? The maximum drawdown is
really saying when did we have large losses in our back test results. So typica
lly this strategy is going to lose money when the markets are very volatile. So
if the market suffers a sharp correction or a sharp drop then you re typically g
oing to have a loss. Now for you to have a loss it basically needs to be a situa
tion where the market moves a lot over a very short period of time. So if there
is a market correction, but it happens over a couple of months then you can stil
l make money from this strategy. It is only when the market correction is very s
harp acquiring over just a few days that the strategy can lose money. So in our
back test results the maximum drawdown occurred over a one week period and this
was in August 2011, the markets were very volatile at that time and we lost abou
t 2.7% of our total capital in about a week and this is roughly about Rs. 27,000
if you re trading a 10 lakh portfolio. Over that period the Nifty index fell 7%
, so over about a one week period there was a very large fall in the index 7% an
d that was the time our drawdown was the biggest. So the good news about this st
rategy is that the drawdowns don t necessarily last very long, the reason being
is that suppose there s a large fall in the markets, following that the option p
rices typically go up even more, so the implied volatility seem to go up once th
ere is a large drawdown and so the options become even more overpriced when the
markets are volatile. So that kind of mitigates the effect a little bit, but yes
typically if there s a large market move in a very short space of time that s w
hen we will tend to see our largest drawdowns and 2.7% is obviously significant
for such a short period of time, but it is not huge and simply because we are al
locating quite a lot of capital to this strategy and I said that before. Even th
ough the margin requirements for one contract are only 50,000, I m telling you t
hat you should have 5 lakhs per contract that you re going to trade, so that s a
lot more. That s just simply because you want to be able to weather these storm
s easily, you want to be in a situation where even if you have a large market cr
ash that the impact to your overall portfolio is small. Even with this you can s
till generate steady consistent returns on your total portfolio.
Next question, how do we manage risks when there is a six sigma market move? I r
eally like this term because I m a fan of data analysis and statistics. So, a si
x sigma basically means an event that s extremely unlikely, something that happe
ns once in a while, let s say there s a huge fall in the markets, what happens i
n that situation, how do we manage risk when there is a six sigma market move. S
o think of this as being a situation where the market falls by maybe 5-10% in a
single day. Very rare, but it does sometimes happen. So my answer to this is the
re are two parts to it. The first is that if the market would move by that much
in a single day, we re going to lose money, there s no way around that. The fact
is that when you re writing options you are essentially selling insurance to ot
her people and that insurance is going to matter when there s a six sigma move.
So, other people are buying this insurance from you and if there s a very large
move in the markets then you re going to have to pay out because you ve sold the
insurance. That said, these moves have been very rarely. The whole reason we se
ll options in the first place is because we are able to capture a large premium
from the fact that these options are overpriced and the overpriced options come
from the fact that people are insuring against these six sigma moves that very r
arely happen. So this is the risk that we re taking, this is the risk that we ta
ke when we write options. We take the risk that there is going to be a very larg
e move in the markets and we earn a compensation for this risk in terms of this
regular income. There is no free lunch in finance, every trade involves risk, tr
ading strategy involves risk and this is kind of the risk we are insuring agains
t, but there is good news on this front as well and that s because I alluded to
this earlier too that when there s a very large market move on the day that move
occurs you re going to lose money, but afterwards you tend to actually make it
back. I ll tell you why. After the large move typically the implied volatilities
become extremely high, so your options become way overpriced following a large
market move. So actually there are strong gains to be made. If there s let s say
a 10% drop in the markets on a single day you may lose big that day, but afterw
ards the option prices become very high and you can actually make a lot of it ba
ck by selling options from that point onward. So that s the short answer. We can
t protect against every single thing, we re selling protection in fact and that
s how we make money, but despite the fact that these large market moves can occ
ur, this strategy actually is able to bounce back from it very quickly.
Final question, how often do we trade and how are losing trades closed out? So t
his trading strategy trades very frequently and in the back test results we trad
e about on average three times per week. So a week is five trading days, so we g
ot about 60% of all days. How we close out trades is essentially we tend to trad
e options on a daily basis and if a trade goes against us we will typically clos
e it out the following morning. So someone asked me about, do you use stop losse
s for options, typically we don t do this, we don t trade, we choose the options
to trade based on what the index is doing, not the actual option prices. So for
example if we re deciding what option to buy and what options to sell we re goi
ng to look at the index and the value of the Nifty index and use that to determi
ne whether we hold the trades or whether we close the trades. So typically what
is going to happen is that let s say you ll enter a trade on a particular day, i
f the market movement is very small on that day that s good for us, we ll make m
oney, we ll typically hold the same trade the following day and the trade will k
eep going. If on the other hand we make a trade and there s a move against us we
ll typically be closing it the following day and we ll be taking a new trade ba
sed on the new level of the Nifty index. So in terms of closing trades out we wi
ll basically be closing our losing trades within a day. So it s very short, it s
very quick and we need to do this in order to keep the risk low. This is the ke
y feature of the trading strategy, you have to trade quite regularly. As I said,
losing trades are typically not held more than a day, very, very rarely.
I m going to show you how to claim OptionMaster, it is worth Rs. 25,000. I m goi
ng to show you how to get this for free. I d like you to first answer this quest
ion. Would you prefer spending time just learning the strategy or would you pref
er to start benefiting from it right away? So I told you I can teach you this st
rategy and you can certainly spend the time learning it. However I m also going
to give you the opportunity to benefit from this strategy right away. I am now i
ntroducing my all new recommendation service, it s called Asad Dossani s Income
Alert. Income Alert is a recommendation service where I pick trades based on my
proprietary strategy to deliver income at will.We have the courses above, so you
can learn how the strategy works, how to do it yourself, even before you do tha
t you can start benefiting from it right now.
So what do I do in Income Alert? We re trading options on the Nifty index and th

is recommendation service is purely for Nifty index options. We re going to impl
ement the same trading strategy that these back test results have shown you and
as I said the back test results have delivered regular income five years in a ro
w with a 98.3% success rate, that s the monthly success rate. So you can get acc
ess to what we ve been talking about so far with my Income Alert recommendation
service. I will send you Income Alerts whenever I see a money making opportunity
. You re going to get multiple recommendations every week. As I said to you earl
ier this strategy trades on average about three times per week, sometimes it s m
ore, sometimes it s less, so there might be weeks where you trade all five days,
there might be weeks where you just trade one day, it all depends on what oppor
tunities are there at the time. As I said in this strategy we look for the most
overpriced options. So sometimes that will change on a day to day basis, sometim
es it will be the same and each alert will have the exact details you need to ma
ke a trade. So I m going to tell you exactly how to make a trade, what instructi
ons to follow, what exactly to trade.
And now I am going to show you a way to join a select group of traders who will
become the "Early Bird" Founder Members of Asad Dossani s Income Alert. So I am
all set to start making recommendations using my Income at Will strategy.There a
re huge benefits to doing so, so let me outline these. The first thing you ll do
if you sign up now, you will get regular Income Alerts delivered to your Inbox.
So as I said you ll get these trading alerts telling you what exactly you shoul
d trade, what options you should trade in order to generate income. So in the Op
tionMaster course I have some parts of the course which are specific to how to t
rade these recommendations, so that s why we are giving a little bit of time, bu
t you re going to get these Income Alerts starting the 26th of October and then
you ll get them indefinitely going forward. Again, you re going to get absolutel
y free access to OptionMaster worth Rs. 25,000 where I will teach you everything
there is to know about this strategy and not only this strategy, but any Option
s Trading strategy you might want to try and I have another special benefit if y
ou become an Early Bird Member, I m going to be holding an Options Trading Works
hop in Mumbai, it is going to be in January next year and you re going to get a
reserve seat for this and that will be in person.
For the attention of ATR followers:

Buy Zone : From 7716.25 to 7693.25

Buy Zone : From 7871.7 to 7849.95

Buy Zone : From 7916.45 to 7896.95
Nifty trading range for : 30 - October - 2015

Buy Zone : From 8072.75 to 8053.25



Buy Zone : From 8127.2 to 8095.95
Nifty trading range for : 30 - September - 2015


Buy Zone : From 7783.25 to 7738.75


Buy Zone : From 7566.05 to 7521.55


Buy Zone : From 7887.8 to 7846.05
Nifty trading range for : 31 - August - 2015

Buy Zone : From 7918.45 to 7876.7


Buy Zone : From 7717.35 to 7680.1
Buy Zone : From 7806.2 to 7768.95


Buy Zone : From 8309.85 to 8286.85



Buy Zone : From 8416.35 to 8393.35

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March on to 9999999: 8100000 visits required.

Namasthe Master & Blog-mates.

Day High :7428.50 Day Low : 7327.60

NS in BAH mode (changes 2 SOR < 7407 ) in Hour T/F.

SAH = Sell And Hold

NS breaks cluster Resistance1 @ 7395-7413 mentioned in Trade Table.

Nifty trading range for : 22 - January - 2016

Breakdown below : 7206.9 (stop loss for intraday longs)

Nifty trading range for : 20 - January - 2016

Previous close : 7,435.10

Nifty trading range for : 19 - January - 2016

Nifty trading range for : 19 - January - 2016

Nifty trading range for : 18 - January - 2016

Nifty trading range for : 18 - January - 2016

Nifty trading range for : 15 - January - 2016

Nifty trading range for : 15 - January - 2016

Breakdown target : 7415

Nifty trading range for : 14 - January - 2016

Nifty trading range for : 14 - January - 2016

Nifty trading range for : 13 - January - 2016

Breakout above : 7580.7 (stop loss for intraday shorts)

Nifty trading range for : 13 - January - 2016

Nifty trading range for : 12 - January - 2016

Nifty trading range for : 12 - January - 2016

Nifty trading range for : 12 - January - 2016

Buy Zone : From 7521.35 to 7500.1

Nifty trading range for : 11 - January - 2016

Nifty trading range for : 11 - January - 2016

Nifty trading range for : 8 - January - 2016

Sell Zone : From 7609.3 to 7629.8

Nifty trading range for : 1 - January - 2016

Nifty trading range for : 31 - December - 2015

Nifty trading range for : 30 - December - 2015

Breakdown target : 7815.75

Nifty trading range for : 29 - December - 2015

Nifty trading range for : 28 - December - 2015

Nifty trading range for : 24 - December - 2015

Sell Zone : From 7914.45 to 7938.7

Nifty trading range for : 21 - December - 2015

Last traded price : 7,835.15

Nifty trading range for : 21 - December - 2015

Nifty trading range for : 18 - December - 2015

Previous close : 7,844.35

Nifty trading range for : 11 - December - 2015

Nifty trading range for : 11 - December - 2015

Nifty trading range for : 10 - December - 2015

Breakout above : 7673.3 (stop loss for intraday shorts)

Nifty trading range for : 4 - December - 2015

Nifty trading range for : 4 - December - 2015

Nifty trading range for : 27 - November - 2015

Nifty trading range for : 19 - November - 2015

(Resistances) : 7771-7990, 7815

Kindly follow the step to login into your account.

So of course you are probably wondering how do we of this. Allow me to introduce

is inevitable. But with options we can do better.

Final part of the Income at Will Master Series.

g to be the same as the equivalent margin for a futures contract. So based on th

So what do I do in Income Alert? We re trading options on the Nifty index and th

For the attention of ATR followers: