Algorithmic Signals for Swing Trading NIFTY Options
Swing Trading Signals for the NIFTY Index in India
The NIFTY 50 Index in the Indian Markets is the equivalent of the Nasdaq 100 in the U.S. Markets. The NIFTY Index Options and Futures are highly liquid, with daily Volumes running into the hundreds of thousands of contracts, with some Strike prices having Open Interest of even more. The Bid-Ask spreads in the Near-term expiries are also very tight for a large Index. This makes the NIFTY Options an ideal trading instrument in the Options market.
U.S. and Indian Options Markets
Some readers may be aware that I have been an Options educator, trader and creator of Proprietary strategies in the Options markets in the U.S. through my company www.OptionTiger.com, as well as my Udemy channel which has over 65,000 students and over 10,000 Reviews with a 4.5 Star rating out of 5. Due to personal reasons, I now spend more time in India, and have been looking at the Indian markets. Over the past few months, I have learnt a lot about the Indian Markets, particularly the Options market. Where there are significant differences between the Options market in India, and the Options market in the U.S., I have been pleasantly surprised by some of the technical infrastructure in the Indian markets. Automated and Algorithmic trading at the retail level is one of them, and there exists a robust infrastructure in this area.
Automated Trading and Proprietary Algorithms
Using similar techniques for Swing trading in the U.S. markets, OptionTiger India is now launching an Automated Trading service starting with NIFTY Options. The style of trading and trade alerts will be of the SWING type, with trades lasting from a few days to a few weeks. At any point, when profit targets are achieved, we’ll exit. But the real start of this service is – IT CAN BE FULLY AUTOMATED in retail customer accounts, which means trades will be opened and closed in your accounts without any need to look at your account. This technical framework has been setup already, and the service will launch in the first week of January.
The Algorithm itself considers various parameters like Price action indicators (Moving averages, MA crossovers, a Proprietary RSI indicator that is highly customized to maximize profits in winning trades, as well as Momentum, Volume and Volatility). Once the Algorithm generates the Buy / Sell signals, trades will be executed in every customer account that is part of the service. Customer accounts are confidential, and OptionTiger has no visibility into individual accounts. Customer accounts are also highly configurable to suit individual account sizes and Risk tolerance. The Number of Contracts (Lots in India), Maximum risk exposure to any one trade and many such parameters are available to each customer to configure on their Dashboard.
ALGORITHMIC AUTOMATED TRADING FOR NIFTY OPTIONS VIDEO
This video below describes the Algorithmic Signals, the Swing trading approach as well as other details. Please contact indiaoptiontiger@gmail.com to know more about this service. We will also be frequently updating this Blog post. The next set of posts will be focused on the Algorithmic signals itself, and will demonstrate the ability to make consistent profits.
Welcome to OptionTiger India !
Hari Swaminathan – OptionTiger India.
