Bank Nifty Futures today had a bearish engulfing day with the sector-wide sell-off. Since May 18th Bank Nifty futures is trading a broader range 17000- 22000 and Bank Nifty has broken the range on Tuesday followed by a bearish engulfing pattern.

Bank Nifty Daily Charts

Sector-wide sell-off is seen in this counter and formed a look above the balance and fail scenario. Any follow thro selling is considered as a potential positional trade setup. Among the entire pack ICICI Bank and IndusInd Bank is the largest loser for the day and lost more than 7%.

Except Bank Baroda, entire banking pack ended up in the negative mode.

Implied Volatility in Bank Nifty shot up and ATR volatility too elevated with ATR levels spiking above 900+ as shown below. And Intraday volatility is at its best with 700-1200 points of intraday fluctuations.

On the Newsfront, The Union Cabinet on Wednesday decided to bring all co-operative banks under the Reserve Bank of India through an ordinance.

This will ensure depositors under urban cooperatives and multi-State cooperative banks, which are 1,540 in number and have a depositor base of 8.6 crores will be protected. This measure will provide adequate control to RBI to supervise and to protect the depositors.

Government banks, including 1,482 urban cooperative banks and 58 multi-state cooperative banks, are now being brought under supervisory powers of Reserve Bank of India (RBI).

The Cabinet also approved a scheme to provide interest subvention of 2% for a 12-month period to small borrowers with loans up to ₹50,000 under the Shishu category of the Pradhan Mantri Mudra Yojana

Bank Nifty Market Profile Charts

From the Market Profile perspectie. Bank Nifty formed a strong Open rejection reverse completely engulfing the previous days value area with major resistance around 22400 levels.

Immediate short term resistance comes around 21700 and the next major support zone is 20500-20700 levels. Short term sentiment will turn down is the price starts accepting below 21700 levels in a very short term.

Sell on Rising markets is the theme one needs to play in a very short term positionally towards 20500 levels. Higher odds that today’s activity could result in both short term as well as a medium-term trend reversal.

This is a simple prototype Amibroker AFL Code for those who want to design a level based breakout system when the technical event occurs(For example ema crossover, MACD crossing zero or RSI crossing above a certain threshold).

System is designed in such a way that when a bullish technical condition occurs that high of the candle price will be used for buying price reference and when bearish condition occurs that low of the candle price will be used for selling price reference.

Long Condition

Short EMA = 13 EMA
Long EMA = 34 EMA

Look for Long Opportunity on the Positive EMA Crossover.
When the EMA Crossover happens, use the high of the candle as a buying reference and enter Buy on the breakout of the EMA candle crossover high reference.

Exit Long Condition

Look for Long Exit on the Negative EMA Crossover.
When the EMA Crossover crossover happens, use the low of the candle as selling reference and exit long on the breakout of the EMA candle crossover low reference

Amibroker AFL Code for the Simple EMA Crossover High-Low Breakout System.

Algomojo is a web-based trading bridge for sending orders automatically to the exchange. It is Indias first web-based trading bridge that comes at Free API cost for Algomojo users who open a trading account via Algomojo.

It is built by traders for traders to provide better trading experience with minimalistic user design.

Algomojo comes with Integrated all-in-one solutions (API, free & proprietary Strategies, Datafeed, Virtual servers, and end to end support at one single marketplace). It helps traders to simply their Algo trading and makes life easier for the traders.

Supported Partner Broker

Aliceblue

Features of Algomojo

Currently Algomojo supports Trade execution from Amibroker, Metatrader, Excel and Custom Designed Trading Platforms(Dot Net, Java, Python,NodeJS) via Algomojo API.

Watchlists

Supports lightweight watch-list with minimalistic design and easy to use interface to add symbols and multiple watchlists.

Dashboard to Track Funds, Positions, Orders, Holdings & MTM Profit/Loss

Manual Orders

One can place manual orders (Intraday,Delivery) and currently supports Limit Orders, Market Orders, Bracket Orders, Cover Orders.

AlgoMojo API

Algomojo comes with inbuilt API which also supports existing clients of partner broker with 7 days of free trial enabled by default.

Order Log

Order Log is provided to verify the timestamp and audit the difference between the executed trades and generated live signals in the trading software.

OrderBook : From the Orderbook one can get both the status(pending, executed, rejected) of manually punched orders and trading software-generated orders.

TradeBook : Tradebook shows executed orders.

Positions: Any open positions can be viewed in the positions section. One button square off is provided to close all the open positions and also positions can be closed on a symbol selection basis.

Positions also displays intraday and position MTM.

Holdings:

Demat account holdings can be viewed and managed under the holdings section.

Supported Trading Bridges

Currently algomojo comes with ready made bridge for Amibroker, Metatrader and Excel with minimal interface between the Algomojo and the Trading software.

Strategy Library

Algomojo also comes with a free & proprietary strategy library for the traders to take advantage of the market trend and momentum in the market.

Datafeed

Datafeed section provides users to subscribe for NSE Cash, NSE Futures, NSE Currencies and MCX Futures and Options.

Supports various charting platforms like Amibroker, Ninjatrader, Excel both desktop and server editions.

we partner with Globaldatafeeds to distribute their products. 3 days of Datafeed Trial will be enabled to all the users of Algomojo to test run their strategies before live exection.

Virtual Private Servers

VPS servers or Virtual Private Servers are the primary need for the algo traders who want 100% uptime with sufficient Internet and Power Backup. One can directly subscribe for windows VPS servers

End to End Integration Support

One can get end to end integration support to configure, test & deploy trading strategies.

Following end to end support will be provided to the algomojo clients.

1)Integration of Algomojo Bridge for Autotrading.
2)Integration of Datafeed (Amibroker, Ninjatrader, Excel etc)
3)Integration of Windows VPS Servers.
3)Testing and Deploying the Trading Strategies.

And also in case the trader needs a custom trading strategy to be coded in Amibroker/Metatrader. On-demand Freelancing support will be provided to onboard the client with custom design strategies.

AlgoMojo API Documentation

AlgoMojo API documentation is comprehensive to know about the various functionalities supported by the trading platform. It helps traders to build their own execution logic.

Also the trading system designers using the interface of Python,NodeJS,Java..etc who want the complete set of API they can send their mailers to support@algomojo.com

Paper Trading

Paper trading before taking the trading strategy live. Expected to be released in Phase 2

Options Execution API

Placing ATM, ITM, OTM orders expected to be released in Phase 2

In case if you want to learn more about the AlgoMojo with indepth insights join our Introduction to Algomojo – Algotrading platform free course to know more about the Algomojo platform.

What is Stamp Duty?

Stamp duty is a kind of tax collected by the state government. Stamp duty is levied on the value of shares transferred. In India currently stamp duty is levied by various states and hence the rate of stamp duty varies from state to state.

The stamp duty is paid when a contract is created for the trade executed by a broker at the request of the client.

Some states brought about lower stamp duty to attract stock market activity to their state. This will no longer be possible.

What Changed with Stamp Duty Now?

The Finance Bill, 2019, has proposed certain amendments in the Indian Stamp Act, 1899 (the Act) bringing uniformity in the levy of stamp duty on securities whether through the physical or dematerialized form

New unified stamp duty rate to be charged to traders and investors at the time of trading in stocks, currency derivatives, and commodities. The new charges will come into force from 1 July 2020.

Who Pays the Stamp Duty Now?

Brokers were required to collect stamp duty from their clients and pay to respective state governments, now exchanges through which the transaction happens will do the job.

This reduces some amount of compliance burden on the brokers

Stamp duties to be collected by the stock exchanges or their authorized clearing corporations and the depositories on behalf of various State Governments.

No more stamp duty waivers on the transfer of securities and mutual fund units in dematerialized form.

Major Benefits of Unified Stamp Duty

•A unified rate will make it a level playing field.

When comes to Equity delivery trades stamp duty is now payable only by the buyers. Investors selling stocks won’t need to pay stamp duty. In the past, stamp duty had to be paid by both the buyers and sellers.

The stamp duty rate for currency and interest rate derivatives has been reduced from ₹200 per ₹1 crore to ₹10 per ₹1 crore

Stamp Duty on Off-Market Transactions

This is the first time that stamp duty has been introduced on off-market transfers done in Demat accounts. Off-market transactions include transfer of shares at the time of inheritance, gifts and transactions in unlisted securities and so on.

Unified Stamp Duty Biggest Threat to Prop Accounts

HFT Firms and Prop Trading Desk who generate 40+ percent of the exchange volume. A proprietary trader is basically an exchange member (broker) who trades on his own account.

Since a contract cannot be created by a broker involved in a trade for himself, many states currently impose a flat fee on the trade undertaken on the broker’s proprietary book.

The newer unified stamp duty provisions could bring a deeper surge in proprietary trading costs.

While trading the debit strategies measuring the risk-reward ratio matters a lot for the options trader. Though you might have a bearish opinion about the market. However, the overall objective of the trader is to maximize the gain and minimize the losses.

Generally, debit strategies have a better risk-reward ratio compared to credit strategies. Let’s look into the bear put spread HDFC Bank example where the view is HDFC Bank hitting 970 in the short term before this expiry. It is basically the view here is bearish from a positional point of view.

Any time decay could eat up the premium and hence to trade the view we need to mitigate the risk with the hedged position. Since the expectation is towards making a test towards sub-1000 levels.

HDFCBANK LTP : 1103 (Underlying Spot)

In order to trade this strategy one can initiate ITM Long Put Option of 30th July expiry i.e at 1120PE at 38.69 CE

And to reduce the risk of premium erosion, adding a hedge 1000PE (Shorting 1000PE July Expiry at Rs 8.65) one can reduce the net debit cost of the put option and also the max expected returns too improved as we are shorting 1000PE which is the also the expected target level.

Net Cost of Debit Spread = 38.69 – 8.7 = Rs 30
Max Total Loss = 30 x 550 = Rs 16500 per lot

Total Gain Anticipated at 1000: 15,000 to 38500
Max Possible Gain on Expiry: 38500

Strategy Break even Levels : 1070

Max Possible Risk reward Ratio : 1:2.33

Total Margin Required to execute on set of spread Rs 21,222 (approx)

Markets are trading calm compared to the Month of March, Apr, June 2020. Volatility cooled off and trading ranges get smaller and smaller. However, still, a reasonable intraday volatility persists in the markets.

Last 6 days of price action is contained mostly within 10660 on the downside and 10840 on the upper side. Monday’s price action ended with a clear failed auction with potential excess at the day high resulting in a Initial balance breakout failure.

Option writers for this series are expecting a 10600 – 11000 range for this expiry. Short term sentiment remains down for the last two trading sessions.

Monday session also ended with a balance breakout failure which ended with a potential trade setup towards 10660 levels in short term.

In Part 1 – We learned what is a sideways markets and the characteristics of the sideways markets. In this section, we are going to learn what are the major qualities required to trade the sideways markets.

What is more required during a sideways market is frequent evaluation of your strategy, keeping your emotional balance in check, and not getting into too many trades.

Five Major Qualities are required to trade the sideways markets.

1)Developing a strong balance trading rules which help traders to identify price based breakout failures (Look above the balance & Fail, Look below the balance and fail, Look above and accelerate, Look below and accelerate, etc)

2)Bringing the ability to distinguish the false breakouts with the stronger ones. Volume Price Analysis or Orderflow comes handy when identifying false breakouts)

3)Attitude to stay calm and non-impulsive as long as the clear breakout is not showing up. (This can come only by experience with market observation)

4)Focusing more on Price structure and context than the price along. Watching the price alone without the context makes one take emotional trading decisions.

5)Evaluating how other traders are behaving during the sideways markets and what is the level of frustration using tools like market profile.

It is too easy to get a view that can go wrong in a sideways market. However one should have a flexible mindset to flip their view when things are changing in the markets. Else adamantly holding to the view and not reacting to the stops or risk mangement often ends up in slow portfolio erosion.

Not only controlling your trading expectations but also the number of trades and looking to trade smaller trading opportunities are the key to be successful trading in a sideways market.

…….To be continued in part 3

In this tutorial, we are going to learn how to construct bearish hedge options for a price structure with crowded short term longs.

Crowded Short term longs in Hindustan Unilever witnessed from the Price Structure point of view and those crowded longs are reaching a kind of Euphoric state as the price started trading currently above 2320 levels.

Now lets try to understand the price structure and how one can build a trade setup with reference to the current market sentiment.

Since May month onwards one can see multiple layers of price compression followed by reaching the euphoric state with a gap on 17th July 2020. Price is reaching an extreme where short term trend reversals are possible as the multi layers of price compression is nothing but crowded short term traders reaching the euphoric state. Hence liquidation odds are possible with the given market sentiment. And also the trade inventory goes long to too long

In-Order to play for this Crowded Price compression setup one can consider using Slight OTM Puts hedged with x3 times of near OTM Short calls. Thing could bring some cushion for traders to manage the theta decay in the Put Options.

Spot Price : 2330

Entry

Buy 1 lot of 2300PE (near ATM Puts) – 30th July 2020 Expiry at 51.55/Lot

Hedge Protection

Short 3 lots of 2360CE (OTM Calls) – 30th July 2020 Expiry at Rs12.75/Lot
Buy 3 lot of 2500CE (OTM Calls) – 30th July 2020 Expiry at Rs45.15/Lot

Total Margin Required for Hedged Position : Rs1,88,000 (Approx)

Strategy Breakeven Point: 2375
Exit on Hindustan Unilever testing 2200 and 2100 levels.

Strategy Risk Level : Moderate Risk Level and Risk increases if Hindustan Unilever starts moving above 2375 levels.

The strategy has protection up to 2375 levels. If Nifty goes beyond 2400 levels it requires exit on the hedge until then, No strategy adjustment is required.

Algomojo is a web-based trading bridge for sending orders automatically to the exchange is partnering with Tradejini – Bangalore based discount broker to provide Free API based algotrading access to their trading clients who opens a trading account with algomojo.

Algomojo is a web-based automated trading platform with a minimalistic design built by traders for the traders.

Algomojo comes with Integrated all-in-one solutions (API, free & proprietary Strategies, Datafeed, Virtual servers, and end to end support at one single marketplace). It helps traders to simply their Algo trading and makes life easier for the traders.

Attend the live webinar this Saturday 25th July 2020 to get to know more about Algomojo Trading Platform

Can Existing Tradejini Customers use the AlgoMojo Platform?

All the existing Tradejini Clients can access the Trading Platform without API access at zero cost. And 7 Days of Free Trial is provided for the existing tradejini clients to access the algotrading platform

However to access the free API clients needs to open a trading account via algomojo in Traditional Plan.

Features of Algomojo

Currently Algomojo supports Trade execution from Amibroker, Metatrader, Excel and Custom Designed Trading Platforms(Dot Net, Java, Python,NodeJS) via Algomojo API.

Watchlists

Supports lightweight watch-list with minimalistic design and easy to use interface to add symbols and multiple watchlists.

Dashboard to Track Funds, Positions, Orders, Holdings & MTM Profit/Loss

Manual Orders

One can place manual orders (Intraday,Delivery) and currently supports Limit Orders, Market Orders, Bracket Orders, Cover Orders.

AlgoMojo API

Algomojo comes with inbuilt API which also supports existing clients of partner broker with 7 days of free trial enabled by default.

Order Log

Order Log is provided to verify the timestamp and audit the difference between the executed trades and generated live signals in the trading software.

OrderBook : From the Orderbook one can get both the status(pending, executed, rejected) of manually punched orders and trading software-generated orders.

TradeBook : Tradebook shows executed orders.

Positions: Any open positions can be viewed in the positions section. One button square off is provided to close all the open positions and also positions can be closed on a symbol selection basis.

Positions also displays intraday and position MTM.

Holdings:

Demat account holdings can be viewed and managed under the holdings section.

Supported Trading Bridges

Currently, algomojo comes with a ready-made bridge for Amibroker, Metatrader, and Excel with the minimal interface between the Algomojo and the Trading software.

Strategy Library

Algomojo also comes with a free & proprietary strategy library for the traders to take advantage of the market trend and momentum in the market.

Datafeed

Datafeed section provides users to subscribe for NSE Cash, NSE Futures, NSE Currencies and MCX Futures and Options.

Supports various charting platforms like Amibroker, Ninjatrader, Excel both desktop and server editions.

we partner with Globaldatafeeds to distribute their products. 3 days of Datafeed Trial will be enabled to all the users of Algomojo to test run their strategies before live exection.

Virtual Private Servers

VPS servers or Virtual Private Servers are the primary need for the algo traders who want 100% uptime with sufficient Internet and Power Backup. One can directly subscribe for windows VPS servers

End to End Integration Support

One can get end to end integration support to configure, test & deploy trading strategies.

Following end to end support will be provided to the algomojo clients.

1)Integration of Algomojo Bridge for Autotrading.
2)Integration of Datafeed (Amibroker, Ninjatrader, Excel etc)
3)Integration of Windows VPS Servers.
3)Testing and Deploying the Trading Strategies.

And also in case the trader needs a custom trading strategy to be coded in Amibroker/Metatrader. On-demand Freelancing support will be provided to onboard the client with custom design strategies.

AlgoMojo API Documentation

AlgoMojo API documentation is comprehensive to know about the various functionalities supported by the trading platform. It helps traders to build their own execution logic.

Also the trading system designers using the interface of Python,NodeJS,Java..etc who want the complete set of API they can send their mailers to support@algomojo.com

Paper Trading

Paper trading before taking the trading strategy live. Expected to be released in Phase 2

Options Execution API

Placing ATM, ITM, OTM orders expected to be released in Phase 2

In this tutorial, we are going to look into a mild variation of Double Diagonal Spread to take a neutral to the bullish view. Double Diagonal Spread is a 4 legged option strategy and nothing but a combination of bull call diagonal spreads and bear put diagonal spreads which is more of a neutral approach towards trading.

Let see how we can take a mild bullish bias with a slight variation in Double Diagonal Spreads.

Lets get some primer on Diagonal Spreads and Calendar Spreads before jumping into the actual trading strategy example

A calendar spread is a strategy involving buying longer term options and selling equal number of shorter term options of the same underlying stock or index with the same strike price

A Diagonal spread is a strategy involving buying longer term options and selling equal number of shorter term options of the same underlying stock or index with the different strike price

A Double Diagonal Spread is a neutral approach combining two strategies Bull Call Diagonal Spread + Bear Put Diagonal Spread and here is the sample payoff graph. It can also be viewed as short strangle in a short month options contract (For example . current month contract) hedged with long strangle on both sides in the long month options contract (for example next month contract.)

Double Diagonal Spread Payoff Graph

Now in order to take a mild bullish approach at the same time hedging the positions on both sides, one can consider going for a Bull Call Calendar Spread + Bear Put Diagonal Spread for the increased width in the profitability spread as shown below

Modified Double Diagonal Spread Payoff

Strategy is composted of 4 legged strategy with a holding period till current month expiry hedged with next month long options on both the sides as shown below

Actual Position

Sell 11200 Puts – Jul 2020 Contract at Rs173/lot
Sell 11500 Calls – Jul 2020 Contract at Rs 27.05/lot

Hedge Position

Long 11100 Put – Aug 2020 Contract at Rs 299/lot
Long 11500 Call – Aug 2020 Contract at Rs 158.90/lot

Lower Breakeven Levels – 11045
Upper Breakeven Levels – 11723

Risk: Downside risk and Upside risk protected on both sides

The strategy is built to manage up to 680 point range ie 11045 – 11723 levels

Exit on Trigger of Stops to reduce the risk further.

Nifty Index Downside stop-loss for Exiting Bear Put Diagonal Spread: 10950
Nifty Index Upside stop-loss for exiting Bull Call Calendar Spread: 10750

Margin Required : Rs 47904/- (approx)

What if Analysis for holding the spread till July 2020 Expiry

QuantZilla is a 75+ hours of immersive coding mentor-ship program on designing trading systems, converting trading ideas into indicators and trading strategies, automating the trading systems.

Starts on August 03, 2020 | 06.00 – 09.00 p.m IST

What you will be learning in QuantZilla?

QuantZilla is classified into two categories

1)QuantZilla Basics: It is designed for traders who are noncoders and want to design their own trading systems or indicators, alerts, Trading Dashboard etc with zero coding experience.

2)QuantZilla Advanced: QuantZilla Advanced is designed for Automated Traders or Coders who want to learn various execution techniques, multi-legged options execution, hedging techniques etc. Prior Programming experience is a must or they should have already attended Quantzilla Basics.

Quantzilla – Module 1 – Introduction to Quantitative Trading Development Platforms

1)Introduction to Quantitative Analysis
2)Investing Vs Trading
3)Quantitative Trading Systems
4)Trading System Development
5)Introduction to Amibroker
6)Features of Amibroker & Datafeed
7)How to Scan in Amibroker
8)How to Explore in Amibroker
9)How to Backtest in Amibroker

Quantzilla – Module 2 – Introduction to Amibroker AFL Coding Development and Basic Amibroker Functions

1)Basics of Amibroker AFL Programming.
2)Understanding AFL Editor & Code Snippets
3)Amibroker identifiers, constants, operators
4)Amibroker Built-in Functions (Plot, PlotShape, LastValue, Cross, EMA)
5)How to Plot Trading Signals

Quantzilla – Module 3 – Building Scanners and Exploration for Trading & Investing Opportunities

Building Simple Scanners (Exploration)
Understanding Filter Variable, Addcolumn function, Addtextcolumn function
Customizing Scanners & Formatting Scanner output
Real-time Scanners
Difference between IIF, WriteIF, IF functions
How to Write Nested IIF Functions
Live Examples on Exploration (Live Coding)
How to compare Current data with past datasets

Quantzilla – Module 4 – Understanding Trading System Development Functions

Where to Get the Complete list of Amibroker Built-in Functions Understanding Valuewhen Function
Understanding Barssince Function
Understanding HHV, LLV, Highest, Lowest, Highestsince, LowestSince Understanding Param Functions & Controls
Understanding Classical Indicators Built-in Functions (MACD, Bollinger, ATR, CCI..etc)
Understanding Exrem Function
Building Simple Donchian Channel Breakout Strategy

Quantzilla – Module 5 – Strategy Creation and Portfolio Backtesting

Building Your First Trading Strategy
Understanding Basic Building blocks in a trading strategy
Backtesting your trading strategy
Portfolio level backtesting
Backtesting Ema Crossover, Supertrend Trading System
Backtesting Vlintra V5 – Nifty & Bank Nifty 5min trend following system

Quantzilla – Module 6 – Measuring Key Performance Indicators (KPI) Metrics

CAGR Overview
Equity Curve and Drawdown
Maximum Drawdown and CAR/MDD
Risk-Adjusted Return
Sharp Ratio and Sortino Ratio
Payoff and Profit Factor
Recovery Factor
K-Ratio

Quantzilla – Module 7 – Creating Intraday Trading Strategies and End of Candle Execution Trading Strategies

Different Backtesting modes available in Amibroker
Creating your Backtesting Template
Applying Stops and Targets to your Trading Strategy
Building First Intraday Trading Strategy
Building End of the Candle Execution Strategies
Basic optimization techniques

Quantzilla – Module 8 – Creating Intra-Bar Execution Strategies and Multi Timeframe Functions

Building Non-Repainting Strategies
Building Intra-Bar Execution Strategies (Limit Order)
Understanding Multi timeframe Functions

Quantzilla – Module 9 – How to Send Trade Alerts in Amibroker

How to Send Alerts to Output Window
How to Send Voice Alert
How to Send Sound Alert
How to Send Popup Alert
How to Send Alerts to Smartphones using Push Bullet
How to use AlertIF, Say, PopupWindow, SendEmail, Play sound function
How to Configure Gmail SMTP and How to Install SSL Addon tool for sending Email Alerts using Amibroker
How to use ParamTrigger & Param Toggle Function and what are the core differences between the two.
How to use Javascript, VB Script inside Amibroker AFL

Quantzilla – Module 9 – Introduction to Optimization, Smart Optimization, Walk Forward Testing & Monte Carlo

What is Optimization? and How to Perform Optimization?
Exhaustive Optimization Vs Smart Optimization
Smart Optimizers SPSO, TRIBES, CMA-ES
What is Curve Fitting and How to Avoid Curve Fitting
What is Walk Forward Testing? and the Importance of Walk Forward Testing
Monte-Carlo simulation for Strategy Validation
Importance of Slippage Handling and other Transaction Cost Analysis

Quantzilla – Module 10 – Introduction to API, Automated Trading & How to Send Automated Orders

What is API?
How to Create API from Algomojo
What is Algomojo (Web Based Algo Trading Platform)
How to send Automated Orders using Broker API
How the Orders form Amibroker is sent via Broker API to Exchange
Amibroker Configuration Settings for Automated Trading
Video Links to Learn more about Algomojo Free API

Quantzilla – Module 11 – Introduction to GFX Functions and Designing Trading Dashboards

Amibroker Low-Level GFX Functions
How to use the Set the font, Set the GFX background mode
How to use GFX Pen, Brush
How to understand co-ordinates
How to draw a Dashboard with Profit and Loss
Difference between Last value and Selected Value Function
Using the Status function to retrieve the pixel width and height
Difference between Barcount and Barindex
What is Quick AFL? How to turn off Quick AFL
How to use advance looping
How to plot trailing stop using the Advance loop method

Quantzilla – Module 11 – Introduction to Advancelooping

Introduction to Advanced Looping
How to use Advance looping to plot Supertrend
Different Phases & Flags used in Advance looping to plot the Supertrend trailing stoploss

Quantzilla – Module 12 – Stoploss and Target Handling

How to apply stop loss, profit target, N-Bar stop, Trailing Stop in Amibroker using Backtester Settings
How to use Applystop Function in Amibroker (Types, Modes of Stoploss)
How to plot initial stoploss

Quantzilla – Module 13 – How to Debug in Amibroker and File Operations?

How to apply trace & tracef functions
How to use Amibroker AFL Debugger
Debugging Settings, Settings Breakpoints & Watching Variables
File Operations in Amibroker
Reading CSV,TXT files data using Amibroker
Exporting CSV,TXT files data from Amibroker Database

Quantzilla – Module 14 – File Operations and How to Backtest Pair Trading Strategies

How to Backtest Pair Trading Strategies in Amibroker
Introduction to Correlation & Co-Integration Functions
Unit Root Testing
Augmented Dickey-Fuller (ADF) Test

Quantzilla – Module 15 – How to backtest multi legged option strategies

What are the challenged faced while coding multi-strike options backtesting
What are the solutions to fix multi-strike options backtesting
Sample code walkthrough and how to create a template for Multi-Strike Options Backtesting
How to Create a Portfolio of Symbols for Options Backtesting
Ideas to implement the backtesting for multiple years of Options data

Quantzilla Execution Strategies – Module 1

What is Quant Trading?
How Amibroker can be used for Automated Trading
Basics of Amibroker Features
Understanding Tick Charts Vs Minute Charts and Range Bar Charts
Different Types of Automated Trading

Quantzilla Execution Strategies – Module 2

Learn to Code Trading Strategies using Amibroker
How to Design a Trading System
Creating an Intraday Breakout Trading System using Amibroker
Creating a Position Breakout Trading System using Amibroker
How to Send automated Orders using Amibroker

Quantzilla Execution Strategies – Module 3

How to Create Bracket Order & Cover Order Trading Strategies.
How to trail the stoploss using Order Modification Trading Strategies.
How to Create Pair Trading Strategies using Amibroker

Quantzilla Execution Strategies – Module 4

Implementing Slicing of Orders in Amibroker for Large Orders
Introduction to Slippages and Slippage Handling with Algos
Strategy Optimization, Walk forward and Monte Carlo

Quantzilla Execution Strategies – Module 5

Option Basic Terminologies
Option Payoff Graph
Options Pricing
How to Send Option Orders using Futures/Spot Charts

Quantzilla Execution Strategies – Module 6

Understanding Options Greeks
Understanding Vertical Spreads, Calendar & Diagonal Spreads
Automatic Scalping the Spreads.

Quantzilla Execution Strategies – Module 7

Scalping the Spreads using Amibroker
How to Create an Expiry Day Automated Scalping System using Amibroker.
How to Create Multi Legged Option Trading Strategies

Quantzilla Execution Strategies – Module 8

Portfolio Trading Strategies
How to select Portfolio of stocks
Evaluating portfolio & strategy performance
Risk Management: Risk evaluation & mitigation, risk control systems
Position Sizing & Kelly Criterion

Quantzilla Execution Strategies – Module 9

How to Implement Straddle & Strangle using Amibroker
How to Implement Gamma Scalping using Amibroker

Quantzilla Execution Strategies – Module 10

How to Implement Automated Butterfly & Iron Condors using Amibroker
How to Implement Hedged Futures Trading Strategy
What is an Options Trading Adjustment
How to Implement Option Trading Adjustments
Best Trading & Coding Practices

We are doing 2 hours of live session on Introduction to Algomojo Platform for Automated trading where we will be discussing How to set your trading desk, trading requirements, and cost involved in setting up Automated trading.

Timings : Starts 25th July 2020 – 8p.m IST

What is the Agenda?

1) Introduction to AlgoMojo Platform
2) Cost Involved in Setup up Trading Platform
3) How to Automated Send Orders from the Charts
4) How to Deploy your trading system live

Algomojo is a web-based trading bridge for sending orders automatically to the exchange. It is Indias first web-based trading bridge that comes at Free API cost for Algomojo users who open a trading account via Algomojo.

Flood of new retail traders flocking into the stock market and most of the brokerage firms across the world reporting surge in trading accounts.

Does it feel like 2008? Obviously not. A recent surge is people are started seeing stock markets as an alternative income as the interest rates are reducing and frequent lockdown brings the risk of job loss.

Small-time investors might tasted the success of profits from their sofas due to the recent uplift from the stock prices.

It it a Herd Mentality?

Could be the starting point of herd mentality. Everybody knows that the herd mentality push the new investors and traders to get into dangerous ideas and risking their money in penny stocks and other dangerous trading instruments.

The number of newbie investors trading during the pandemic is surging, with mobile trading app Robinhood adding 3 million new accounts in the first quarter alone.

Thanks to the gamification of trading mobile apps which draws too much of novice investors/trader’s attention.

we know how this frenzy retail flocking story ends. It might look like it is easy that even a common man can dive into stock markets and make money and at the end the herd crowd will become the prey to those professional big money players!

In this tutorial, we are going to learn how to reduce the risk in a bearish strategy at the same time effectively use the margin using (Hedged Bear Put Spread). Currently Nifty is trading around 11200 levels in spot and expiry is around the corner. However Nifty hits the major supply zone (Resistance zone) 11000-11400 as shown below where institutional selling pressure is expected at higher prices.

Nifty CMP : 11202.85 ( as on 29th July 2020 Closing)

If you are very new to price action based studies it is recommended to start with the free course to get some of the basics of Institutional Orderflow and Price action.

Trading Sentiment on wednesday trading session turned negative which could be the starting point of short term correction with positional sell side odds.

As you are well aware bear call spread is one of the low risk trading strategy that can be practiced when the market expectation is on the downside. And for the downside target one can use the recent freak low around 10800 levels.

With the given scenario one can go with Bear Put Spread hedged with OTM Call Options to defend the upper range 11400 levels.

Strategy : Bear Put Spread + Sell OTM Call (Hedge to offset the time decay)

Actual Position

Sell 2 Lots of 10800PE – 06th Aug 2020 Expiry – Rs28
Buy 2 lots of 11250PE – 06th Aug 2020 Expiry – Rs 151.05

Hedged Position
Sell 1 lot of 11500CE – 06th Aug 2020 Expiry- Rs 37

When to Execute this trading strategy.

If price holding below 11250 levels or even starts accepting below 11200 levels in the upcoming sessions.

When to Exit?

Exit on Target 10800 levels (Freak Low)
Exit on Stops 11500 levels

Strategy is designed to protect the downside loss upto 11500 levels. Risk will accelerate beyond 11500 levels.

Max loss up to 11500 levels till holding 06th Aug Expiry – Rs15645/- per set

Max Returns Possible : Rs51,855/-

Total Margin Required : Rs 1,59,000 (approx)

What if Scenario on Expiry

In the last webinar, we discussed Introduction to Algomojo Platform. In this Webinar, we are going to discuss how to send option orders using Algomojo platform.

Timings : Starts 1st Aug 2020 – 8p.m IST

Topics Covered in the Webinar

1)How to Place ATM Options Orders
2)How to Place ITM Options Orders
3)How to Place OTM Options Orders
4)How to Place Futures Vs Hedged Future Orders and Margin Requirement for Hedged Futures

Algomojo is a web-based trading bridge for sending orders automatically to the exchange. It is Indias first web-based trading bridge that comes at Free API cost for Algomojo users who open a trading account via Algomojo.

The most important thing is taking a view and riding with options strategy is the breakeven level. Faster the breakeven levels better the odds of risk-reward ratio. Diagonal Spreads has a faster breakeven with controlled risk and limited reward.

Trade Expectation: Nifty to touch the freak low 10800 as explained in the How to Design a Bearish Hedged Bear Put Spread article. Nifty has been hovering around psychological reference around 11000. Any Acceptance below 11000 can test towards 10800 and 10750 respectively.

Bearish Put Diagonal Spread

Bearish Put Diagonal Spreads are used to take a mild bearish view with limited risk and limited reward. Where the main position is the long dated option. In this example 11050PE Put Long 13th Aug 2020 expiry considered for long dated option which is hedged with short dated option by shorting 11750PE Put short 06th Aug 2020 expiry to create a Put Diagonal Spread.

Buy 11050PE – 13th Aug 2020 – Rs 173.70/lot
Short 10750PE – 06th Aug 2020 – Rs 12.70/lot

Lower Breakeven : 11017

Profit Expectation : 10K – 13K

Max Profit Potential: 13,432 per set

Max Downside Risk : 12071

Margin Required : 22,071 (Approx)

What if Scenario on Expiry

In this webinar, we will be discussing the basics of how the option price is getting influenced by various factors and how to measure it using option greeks and the usage of option greeks on a day to day trading life.

Who should Attend

Beginners Who are new to Options and Who want to know the basics of Option Greeks.

Date : 8th Aug 2020, Timings 8p.m – 10p.m IST

What are we going to discuss in the webinar?

1) Understanding the Black-Sholes Model
2) Understanding Option Greeks (Delta, Gamma, Theta & Vega)
3) How to Apply Option Greeks Practically
4) How to use Options Greek Calculator
5) How to Prepare for Next Week for Nifty and Bank Nifty (Short term Market Outlook)

Starting this 5th September we are doing 94+ hours of an immersive mentorship program with live market trading for options traders who want to bring the expertise of market profile into their options trading. Visit here for the complete agenda

In this webinar, we will be discussing the basics of auction market theory, how the buyers and sellers interact in the markets, and how we can visualize the auction using tools like market profile.

Who should Attend

Beginners Who are new to Market Profile and Who want to know the basics of Auction Market Theory.

1) What is Auction Market Theory
2) How Market Profile is connected to Auction Market Theory
3) How to read Market Profile Charts?
4) Difference Between Reading Price Charts Vs Price Distribution Charts
5) Market Profile Basic Terminologies
6) How to take a short term outlook using Market Profile for Next Week

This tutorial helps programmers to make use of Amibroker to leverage Python Functions using AmiPy – 64-bit Amibroker Plugin

Requirements
1)Amibroker 6.3 or Higher ( 64-bit)
2)Python 3.8 – 64 bit (Standalone. Not Conda or Anaconda Install)
3)Numpy Library.

This solves the legacy way of Connecting Amibroker with python using the COM Server method.

Thread and Link to Download AmiPy

When the whole world went for a lock-down and economy brought to the brink of the collapse entire global equity markets saw a V-shape recovery except the Indian Banking Sector.

Somehow long term investors are not confident enough about the growth story in the banks after Covid-19. Even on the Monthly charts, it is hard to visualize any long term activity happening on Nifty Bank Index despite the steep recovery in Nifty.

Even before the COVID-19 pandemic, they were constantly in the news for all the wrong reasons. Year to Date still the Index is down by more than 33% and failure at the faster rate put the sector under serious trouble from investing perspective.

Poor credit offtake, Rising Bad Debts & NPAs, Continued operational interference due to COVID-19 are the fundamental reasons attributed to the fall and made the investors stay risk-averse in this sector.

Bank Nifty Weekly Charts

The weekly timeframe is consolidating and withholding negative sentiments spells trouble from the medium timeframe perspective. Immediate Medium-term resistance formed around 22500 levels. For any medium-term turn around Bank Nifty index have to break above 22500 levels

Nifty Bank – Daily Timeframe

Bank Nifty ended with sideways mode post the March 2020 crash and thus far only the extreme volatility got faded to a fair extent in the last 5 months. However no signs of investing money flocking to the Banking sector.

Overall Short term and medium-term outlook for the Banking sector holds trouble. One of the Cautious times if you are an investor/short term investor in this counter.