How you can earn INR 1,50,000.00 per month from commodity trading
We discuss commodity Crude Oil. Its volatile and give on an average 50 points daily movement. Post updated on 03-04-2018.
MIS margin for Crude Oil Mini 10 BBL = inr1579 as on 03-04-2018 (updated)
Normal Margin For Crude Oil 100 BBL = inr31352 as on 3-04-2017 (updated)
MIS margin for Crude Oil 100 BBL = inr15676 as on 03-04-2018 (updated)
Intraday Target = Earn INR 10,000.00 with Investment less than inr20000.00 including margin money.
If trading in Crude Oil Mini this is equal to inr10000/10BBL(1lot) = 1000points
So, If we buy 10 lots (investment amount MIS inr15790 only) we need 100points movement in stock and that is very difficult to get in one trade that too daily. Also, to buy 10 lots we will have to time the market perfectly, market should be trending with good volume, otherwise it may make behave a bulk deal on the candlestick charts. Daily on an average between open, close, highs and lows, we can get minimum 20 points very easily in one trade and with some practice we can get 50 to 100 points also but it may require multiple trades. This is where Supertrend setting comes handy, else you can safely earn with standard 5 lots x 10bbl x 20 points = inr1000 and exit for the day.
Setting Supertrend for Crude Oil Trade - For Long Positions/or/short positions in crude oil for one complete contract period till target of inr 1,50,000 is achieved within 21 days.
So, now you get it once we enter the market we are not going to come out till the trend changes. Right you got it now. Let's see how we do it.
In the chart below we are moving from October to November 2017, On 23rd October we are in possession of 10 lots of crude oil mini bought at CMP 3498.52 at 3.00 pm we hold long position on our hourly hieken-ashi candlestick chart till supertrend gives a sell signal on 02-11-2017 at 5.00 pm at CMP 3608.51 Here, our gain is 10lotsx10bblx(3608.51-3498.52) = inr10,999.00 this profit we have booked in november 2017. Lets see how much more we made in november with help of next chart.
In the chart below we are in November 2017, On 2nd of November we sell of 10 lots of crude oil mini at CMP 3608.51, now we short our position as market seems has taken a down tend w.r.t to Supertrend, PSAR, Heiken-Ashi Candlesticks and also Stochastics, this we keep so we have no doubts. We short our position as quickly as possible on our 5.00pm candle itself, easily that makes a high of 3616 and a low of 3604 on that day we are able to short our position at 3610.52 luckily and we move on holding that position as long position on our hourly hieken-ashi candlestick chart till supertrend gives a buy signal on very next day 03-11-2017 10.00 pm market opens GAP-DOWN and does a DOJI on its first candle making me feel like "i should exit from trade immediately" but i wait for signal and it comes in the next candle I exit my short position (in all 10 lots) immediately at market price CMP 3556.71 Here, our gain is 10lotsx10bblx(3610.52-3556.71) = inr5381.00 (this amount I payout as I keep only inr20000 in zerodha account for trade) this is 2nd profit we have now booked in november 2017. Lets see how much more we make in november.
For our next trade we make a long position with 10 lots of Crude oil Mini in the same hour candle by placing limit by of 3550 but dont't get it , finally I quickly buy at CMP 3560.80 (market no limit) as I see a uptrend signal already given by all of Supertrend, PSAR (dot is below candle stick), Heiken-Ashi Candlesticks and also Stochastics on this hour's candle. Uptrend maintained on my hourly watch everyday , then on 8th november also I am at ease in the morning 10 to 11am oh! now uptrend only in many more days to come till we reach 4000 or more , I am making a guess as some news says opec wants crude oil price hike upto 70 dollers a barrel , so i make a guess $70xinr64 is approx 4480, so cool. At 12 pm again I feel like watching the charts , there I see number of bids going lower than number of offers in market depth, a very good signal of trend reversal in crude but it happens many times a day, so no problem but I feel like I must keep a watch as I have open my terminal and I have a feeling , you know, nothing happens, but i kepp watching every hour once till night and I exit at 3800 by placing a limit order for 20 lots and so make a short position at same time by selling my lots at same level. Here, our gain is 10lotsx10bblx(3800 -3560.8) = inr23920.00 (this amount I payout as I keep only inr20000 in zerodha account for trade) this is 3rd profit we have now booked in november 2017.
See calculations below for other profits booked on this November 2017 chart.
On Sell Signal 08/11 we had sell 10 lots @ 3800 and shorted our position, again buy signal 3814 but again sell signal oscillated and could do nothing as i did not want to sell at 3814 so I exit at 3800 and book Zero profit. I am out of market till next day.
On 14 again I short position at 3789 and hold it till 3701. Here I gain 10x10x(3789-3701)=inr 8800 (payout).
Then on the same day I make a buy position at 3715.10 next day I get a sell signal as market is gap down I have to book loss to take a new position in down trend , but I believe in news and I feel market is now sideways and leave my position at 3715.10 intact and wait for some gains, on 22nd I sell at 3768.06 Here, our gain is 10lotsx10bblx(3786.06 -3715.10) = inr7096.00
Then I do one more short trade between 27 and 29th sell limit @3792 to buy limit @3715 booking inr7700.00 profit.
That;s all for november 2017. The total is inr63,896.00 .
You can to use , Supertrend, PSAR, Heiken-Ashi Candlesticks and also Stochastics to judge your trades. Use hourly charts , if you want half hourly chart but not less for crude oil , to get long trades on trending crude. Keep in touch of some news in the webpages like www.oilprice.com so you can make a guess of current price in INR. Look out for daily trend of crude and its pivot on www.earnometer.com That is about all, please. Now as I said study more in depth below technical.
Supertrend is a ATR Based Trailing Stoploss Trading strategy. Supertrend is a trend following strategy for system traders which makes money in a trending market and losses in sideways market.
Green Up Arrow represents Buy Signal (in most of the trading platforms)(I use zerodha/upstox both)
Red Down Arrow represents Sell Signal (in most of the trading platforms)(I use zerodha/upstox both)
(I use both because Zerodha I practice only for intraday and upstox use for positional trades)
Green Lines Represents Trailing stop for Longs on the close of candle (not intraday stoploss)
Red Lines Represents Trailing stop for Shorts on the close of candle (not intraday stoploss)
Fix a filter of 200 EMA (a yellow line) to act as another supertrend filter to remove some of the noise in the trading signals
1) Signals are non repainting means Buy and Sell Signals are decided based on the close of the candle.
2) Time left feature is to added to track how many seconds left for the candle to close.
3) Multitimeframe Dashboard tracks the Supertrend Signals across different
4) Sentimental Dashboard which track the sentiment in the market. for more details about how to use the info about the market sentiment view
Create a Multi-time-frame Dashboard on your Trading Chart
Multi-time-frame Dashboard tracks the Trading Signals (P/L Reports, Trailing Stops, When the Signal Arrived, What price the Signal Arrived) across different time-frame 5min, 15min and 60min. If you are a amibroker user and would like to have this strategy on your machine download the AFL code for Supertrend, Multi-time-frame Dashboard from any website resource.
& 200 EMA Filter how can we do it?
Supertrend is a long/short based system trading concept. however by introducing supertrend with 200EMA filter we can filter out some of the unwanted noise in the system. If you want to learn how to trade supertrend with 200 EMA filter, wait for my next post.
We Buy – if super-trend buy signal continues and candle above 200 EMA
We Exit Buy – if super-trend shows a exit signal
We Short – if suptrend sell signal continues and candle below 200 EMA (Red Arrow)
We Exit Short – if supertrend shows a exit signal
Also, create your own sentimental dashboard by watching market depth that shows number of bids and number of offers, its a great way to get the trend of the markets!! Watch total quantity of bid and total quantity of offer , - and if quantity of bids > quantity of offers crude oil markets tends to trend upwards , keep a watch there is going to be a upward break-out. Similarly, vice-versa happens.
So, Increasing reading indicates the possibility of market moving in uptrend and decreasing value indicates a possible downtrend.
One can also adopt 15min to capture very shorter term movements in the markets(short term intraday especially for holding position ranging between 15min – 2 hours). However 60 min sentimental will give more clarity about the trend for any day (This for traders holding their position anywhere ranging from 1 hour – 8 hours). And Daily Sentimental Mood will give more clarity about the carry forwarding positions to next day and gain about 100 points movement when you get the requisite experience.
So, creating your sentimental idea make sense more for discretionary traders who wants to enter the trend at the earliest and exit closer to the top however it does not benefit much for System Traders/Charting.
What is the Timeframe Shown required in Charts also depends on how much points you want to gain and how long you want to hold. 30 minute chart on an average is best for any trade intraday, long , short , etc.
Is Supertrend a Intraday Trading Strategy?
No Supertrend is a carry forward strategy and not a intraday trading strategy. If you are trading supertrend then you have to carry forward your position every day, every week.
How Intraday players can take advantage of this strategy?
Sentimental dashboard helps the people in Trading Decision on how to play the intraday trend.
What is the Profit of this Trading Strategy in the Past?
From the past historical data, profit ranges between 38-44% in the long run for different trading instruments after brokerage, slippage and other taxes. However if you are planning to trade this strategy back-test the strategy from your end to understand the nature of the trading system.
What is the maximum continuous losses the trading system can yield?
After backtesting in Nifty / MCX Futures / Zerodha 30 minute Chart data it is inferred that till to date 3-5 consecutive losses are possible and and may vary for different timeframes and different trading instruments.
How to Enter and Exit?
Entry should be based on the completion of the close of 30min Bar Candle. Trade should be executed with 5secs once the 30min candle complete. Trade should not be executed before the completion of 30min bars.
How to Trading using the Multitimeframe Dashboard?
Multitimeframe dashboard is shown here to observe what is happening in the other timeframe. However Supertrend is not a multitimeframe strategy and higher timeframes often involves higher risk. Its better to stick with 5min timeframe for a better risk control in long term.
More to come, still discussing among friends !!
Calculate profit loss from charts below based on Supertrend.
Dear Friends,
I like discount brokerages not just because it helps save money but because its also a great innovative concept based on foundation called honesty ...
I used Zerodha Trading Platform Now? You'll love it to :-
Join Zerodha trade on their simple kite platform.
To join click on my referral link here
https://zerodha.com?c=ZK8607
I quote this site "That said, we also realized there is this small community of traders who are extremely talented and passionate. But, the biggest problem they face are: Not enough trading capital. A client with Rs 1lk returns 10% in a month which is brilliant, but that is just Rs 10,000, which in today’s world, is not enough to survive trading full time (more than 90% of our traders have less than Rs 1lk in their account). To earn more, he starts over trading taking bigger risks, and eventually ends up making a loss. Most of the times before blossoming into a great trader, the career ends."
Read more at
https://zerodha.com/z-connect/zerodha/why-zerodha/opentrade-learn-following-star-traders
So, if my blogs help you and if you wish to join Zerodha do it by using my link below it will be of help ...
https://zerodha.com?c=ZK8607
If trading in Crude Oil this is equal to inr10000/100BBL(1lot) = 100points
So, If we buy 1 lot (investment amount MIS inr15676 only) we need 100points movement in stock and that is very difficult to get in one trade that too daily. Daily on an average between open, close, highs and lows, we can get minimum 10 points very easily in one trade and with some practice we can get 50 to 100 points also but it may require multiple trades. This is where Supertrend setting comes handy, else you can safely earn with standard 1 lots x 100bbl x 10 points = inr1000 and exit for the day.
We have reached nowhere so far. Then the question is how can I make inr 10,000.00 per day in atleast 15 trading sessions , so that my monthly income from this trade is inr 1,50,000.00
Technically we can now guess how to do it mathematically by multiple trades, now we all know its very tiring to do multiple trades sitting in front of terminal all day.
Hey, so we need more investment? Yes, maybe. But 1st lets do some back testing based on premise as mentioned below. Read very carefully.
So, now you get it once we enter the market we are not going to come out till the trend changes. Right you got it now. Let's see how we do it.
In the chart below we are moving from October to November 2017, On 23rd October we are in possession of 10 lots of crude oil mini bought at CMP 3498.52 at 3.00 pm we hold long position on our hourly hieken-ashi candlestick chart till supertrend gives a sell signal on 02-11-2017 at 5.00 pm at CMP 3608.51 Here, our gain is 10lotsx10bblx(3608.51-3498.52) = inr10,999.00 this profit we have booked in november 2017. Lets see how much more we made in november with help of next chart.
In the chart below we are in November 2017, On 2nd of November we sell of 10 lots of crude oil mini at CMP 3608.51, now we short our position as market seems has taken a down tend w.r.t to Supertrend, PSAR, Heiken-Ashi Candlesticks and also Stochastics, this we keep so we have no doubts. We short our position as quickly as possible on our 5.00pm candle itself, easily that makes a high of 3616 and a low of 3604 on that day we are able to short our position at 3610.52 luckily and we move on holding that position as long position on our hourly hieken-ashi candlestick chart till supertrend gives a buy signal on very next day 03-11-2017 10.00 pm market opens GAP-DOWN and does a DOJI on its first candle making me feel like "i should exit from trade immediately" but i wait for signal and it comes in the next candle I exit my short position (in all 10 lots) immediately at market price CMP 3556.71 Here, our gain is 10lotsx10bblx(3610.52-3556.71) = inr5381.00 (this amount I payout as I keep only inr20000 in zerodha account for trade) this is 2nd profit we have now booked in november 2017. Lets see how much more we make in november.
For our next trade we make a long position with 10 lots of Crude oil Mini in the same hour candle by placing limit by of 3550 but dont't get it , finally I quickly buy at CMP 3560.80 (market no limit) as I see a uptrend signal already given by all of Supertrend, PSAR (dot is below candle stick), Heiken-Ashi Candlesticks and also Stochastics on this hour's candle. Uptrend maintained on my hourly watch everyday , then on 8th november also I am at ease in the morning 10 to 11am oh! now uptrend only in many more days to come till we reach 4000 or more , I am making a guess as some news says opec wants crude oil price hike upto 70 dollers a barrel , so i make a guess $70xinr64 is approx 4480, so cool. At 12 pm again I feel like watching the charts , there I see number of bids going lower than number of offers in market depth, a very good signal of trend reversal in crude but it happens many times a day, so no problem but I feel like I must keep a watch as I have open my terminal and I have a feeling , you know, nothing happens, but i kepp watching every hour once till night and I exit at 3800 by placing a limit order for 20 lots and so make a short position at same time by selling my lots at same level. Here, our gain is 10lotsx10bblx(3800 -3560.8) = inr23920.00 (this amount I payout as I keep only inr20000 in zerodha account for trade) this is 3rd profit we have now booked in november 2017.
See calculations below for other profits booked on this November 2017 chart.
On Sell Signal 08/11 we had sell 10 lots @ 3800 and shorted our position, again buy signal 3814 but again sell signal oscillated and could do nothing as i did not want to sell at 3814 so I exit at 3800 and book Zero profit. I am out of market till next day.
On 14 again I short position at 3789 and hold it till 3701. Here I gain 10x10x(3789-3701)=inr 8800 (payout).
Then on the same day I make a buy position at 3715.10 next day I get a sell signal as market is gap down I have to book loss to take a new position in down trend , but I believe in news and I feel market is now sideways and leave my position at 3715.10 intact and wait for some gains, on 22nd I sell at 3768.06 Here, our gain is 10lotsx10bblx(3786.06 -3715.10) = inr7096.00
Then I do one more short trade between 27 and 29th sell limit @3792 to buy limit @3715 booking inr7700.00 profit.
That;s all for november 2017. The total is inr63,896.00 .
You can to use , Supertrend, PSAR, Heiken-Ashi Candlesticks and also Stochastics to judge your trades. Use hourly charts , if you want half hourly chart but not less for crude oil , to get long trades on trending crude. Keep in touch of some news in the webpages like www.oilprice.com so you can make a guess of current price in INR. Look out for daily trend of crude and its pivot on www.earnometer.com That is about all, please. Now as I said study more in depth below technical.
Supertrend is a ATR Based Trailing Stoploss Trading strategy. Supertrend is a trend following strategy for system traders which makes money in a trending market and losses in sideways market.
Green Up Arrow represents Buy Signal (in most of the trading platforms)(I use zerodha/upstox both)
Red Down Arrow represents Sell Signal (in most of the trading platforms)(I use zerodha/upstox both)
(I use both because Zerodha I practice only for intraday and upstox use for positional trades)
Green Lines Represents Trailing stop for Longs on the close of candle (not intraday stoploss)
Red Lines Represents Trailing stop for Shorts on the close of candle (not intraday stoploss)
Fix a filter of 200 EMA (a yellow line) to act as another supertrend filter to remove some of the noise in the trading signals
1) Signals are non repainting means Buy and Sell Signals are decided based on the close of the candle.
2) Time left feature is to added to track how many seconds left for the candle to close.
3) Multitimeframe Dashboard tracks the Supertrend Signals across different
4) Sentimental Dashboard which track the sentiment in the market. for more details about how to use the info about the market sentiment view
Create a Multi-time-frame Dashboard on your Trading Chart
Multi-time-frame Dashboard tracks the Trading Signals (P/L Reports, Trailing Stops, When the Signal Arrived, What price the Signal Arrived) across different time-frame 5min, 15min and 60min. If you are a amibroker user and would like to have this strategy on your machine download the AFL code for Supertrend, Multi-time-frame Dashboard from any website resource.
& 200 EMA Filter how can we do it?
Supertrend is a long/short based system trading concept. however by introducing supertrend with 200EMA filter we can filter out some of the unwanted noise in the system. If you want to learn how to trade supertrend with 200 EMA filter, wait for my next post.
We Buy – if super-trend buy signal continues and candle above 200 EMA
We Exit Buy – if super-trend shows a exit signal
We Short – if suptrend sell signal continues and candle below 200 EMA (Red Arrow)
We Exit Short – if supertrend shows a exit signal
Also, create your own sentimental dashboard by watching market depth that shows number of bids and number of offers, its a great way to get the trend of the markets!! Watch total quantity of bid and total quantity of offer , - and if quantity of bids > quantity of offers crude oil markets tends to trend upwards , keep a watch there is going to be a upward break-out. Similarly, vice-versa happens.
So, Increasing reading indicates the possibility of market moving in uptrend and decreasing value indicates a possible downtrend.
One can also adopt 15min to capture very shorter term movements in the markets(short term intraday especially for holding position ranging between 15min – 2 hours). However 60 min sentimental will give more clarity about the trend for any day (This for traders holding their position anywhere ranging from 1 hour – 8 hours). And Daily Sentimental Mood will give more clarity about the carry forwarding positions to next day and gain about 100 points movement when you get the requisite experience.
So, creating your sentimental idea make sense more for discretionary traders who wants to enter the trend at the earliest and exit closer to the top however it does not benefit much for System Traders/Charting.
What is the Timeframe Shown required in Charts also depends on how much points you want to gain and how long you want to hold. 30 minute chart on an average is best for any trade intraday, long , short , etc.
Is Supertrend a Intraday Trading Strategy?
No Supertrend is a carry forward strategy and not a intraday trading strategy. If you are trading supertrend then you have to carry forward your position every day, every week.
How Intraday players can take advantage of this strategy?
Sentimental dashboard helps the people in Trading Decision on how to play the intraday trend.
What is the Profit of this Trading Strategy in the Past?
From the past historical data, profit ranges between 38-44% in the long run for different trading instruments after brokerage, slippage and other taxes. However if you are planning to trade this strategy back-test the strategy from your end to understand the nature of the trading system.
What is the maximum continuous losses the trading system can yield?
After backtesting in Nifty / MCX Futures / Zerodha 30 minute Chart data it is inferred that till to date 3-5 consecutive losses are possible and and may vary for different timeframes and different trading instruments.
How to Enter and Exit?
Entry should be based on the completion of the close of 30min Bar Candle. Trade should be executed with 5secs once the 30min candle complete. Trade should not be executed before the completion of 30min bars.
How to Trading using the Multitimeframe Dashboard?
Multitimeframe dashboard is shown here to observe what is happening in the other timeframe. However Supertrend is not a multitimeframe strategy and higher timeframes often involves higher risk. Its better to stick with 5min timeframe for a better risk control in long term.
More to come, still discussing among friends !!
Calculate profit loss from charts below based on Supertrend.
Life is simple, so you just keep it simple, dont complicate it.
Dear Friends,
I like discount brokerages not just because it helps save money but because its also a great innovative concept based on foundation called honesty ...
I used Zerodha Trading Platform Now? You'll love it to :-
Join Zerodha trade on their simple kite platform.
To join click on my referral link here
https://zerodha.com?c=ZK8607
I quote this site "That said, we also realized there is this small community of traders who are extremely talented and passionate. But, the biggest problem they face are: Not enough trading capital. A client with Rs 1lk returns 10% in a month which is brilliant, but that is just Rs 10,000, which in today’s world, is not enough to survive trading full time (more than 90% of our traders have less than Rs 1lk in their account). To earn more, he starts over trading taking bigger risks, and eventually ends up making a loss. Most of the times before blossoming into a great trader, the career ends."
Read more at
https://zerodha.com/z-connect/zerodha/why-zerodha/opentrade-learn-following-star-traders
So, if my blogs help you and if you wish to join Zerodha do it by using my link below it will be of help ...
https://zerodha.com?c=ZK8607
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