How I managed my losing trade to end in Profit !

April 17th, 2020 was a difficult day for most traders as the market opened with a 3% gap up & fell after that and again rallied in the 2nd half.

In this article, I will be sharing how I managed my trades and turned my losses to profits.

Final MTM Profits.
  1. I had carried overnight 20 lots sell of 8400 PE sell & 9500 CE sell
  • 1500 8400 PE at 110
  • -1500 9500 CE at 114

Net Credit was 224 points

In the morning when the markets opened it was around 265 points due to gap up of 3%.

MTM — 60 K at 9:20 A.M.

2. I waited for 15 mins and my plan was to go long above 1st 15 min high to defend the position( Gap Strategy). But the market broke 15 min low & losses started to narrow. At around 11 am, the trade was at breakeven.

3. At 11:15 am, Markets were not going anywhere so as per my intraday theta eating strategy sold 8800 and 8900

-750 8800 PE at 147

-750 8900 PE at 159 in the same quantity as 9500 CE as the view was neutral

And booked profit in overnight 8400 PE at 79.

4. 15 mins later at 11:30 am, Market, hit a new day low so sold additional 9400 CE at 200 as I was slightly bearish as per my systems

The current position was:

  • 750 8800 PE 147
  • -750 8900 PE 159
  • -1500 9400 CE at 200
  • -1500 9500 CE (Overnight position)

5. The market was falling and my 9400 CE was at 165. I was in 20K profit :) As I had short positions, I Kept buy StopLoss on 9400 CE at 196 ( Above 20 MA in 5 min chart ) The SL got triggered at 2:20 pm when markets rallied.

6. As per my intraday system, my stance changed to bullish & was expecting a short-covering rally I sold 9000 PE & 9100 PE (kept pyramiding)

Open positions now:

  • 1500 9000 PE at 198
  • -1500 9100 PE at 194
  • -750 8800 PE at 147
  • -750 8900 PE 159
  • -1500 9500 CE (overnight)

7. At 3 pm, I was in 1 L + profit. As rally seemed strong, I bought 9300 CE +3000 qty (pyramiding) with a 20 point SL as I had profit cushion of additional sold PE.

I take risks only when I have a profit cushion.

“ Be aggressive when on winning streak & defensive if losing”

8. 3:15 pm (Time to close intraday shop) I don’t take any signals after 3:15 pm.

Booked profits in -:

8800 PE at 106

8900 PE at 128

9000 PE at 167

9. Rest Carried for Monday-

-1500 9100 PE

3000 9300 CE

-1500 9500 CE

That’s how I managed my trades without being emotional after morning loss and just doing what the market is saying.

To conclude I would like to say that Just follow your systems & manage your risk. That’s the only way to successful trading.

Happy Trading!!

Quant | Algorithms | Options | Trading