What is the 9 20 trading strategy? (2024)

What is the 9 20 trading strategy?

The 9:20 AM short straddle strategy offers traders a dynamic approach to capturing potential profit from market volatility in the early trading hours. By selling both a call and a put option with the same strike price and expiration date, traders position themselves to profit regardless of the market's direction.

Does 9 20 strategy work?

9.20 Straddle is a popular trading strategy in Nifty Options. The strategy involves a very simple execution process and can be easily automated and doesn't involve much of the complexity and it comes with only one vulnerability. Yeh, it can be gamed with stop hunting.

What is the 9 20 rule in trading?

9:20 straddle refers to selling at-the-money ATM ( at-the-money) options at 9:20 AM and closing the trade after 3.15 PM. This strategy involves selling naked ATM call and put options. The loss in this strategy is unlimited loss and limited profit.

What is the 9 20 EMA trading strategy?

The 9 and 20 EMA's are a great combination to help give trading signals for entries and exits. The 13 EMA can also be used; it can be used in conjunction with the 9 and 20. If the 9 ema is over the 20, the price is bullish. If the 20 is over the 9, the price is bearish.

What is the 9 30 trading strategy?

The 9/30 trading strategy is a trend-following strategy that uses two moving averages — a 9-period EMA (exponential moving average) and a 30-period WMA (weighted moving average) — to spot trading opportunities when there is a pullback.

Is 920 straddle profitable?

The average capital requirement for this strategy is 0.9 lakhs. As you can see that the overall profit is 5.34 Lakhs in Indian Rupees which is 593% of the capital.

What is the 1 3 2 strategy?

The 1-3-2 structure supposedly appears as a tree. The strategy profits from a small increase in the price of the underlying asset and maxes when the underlying closes at the middle option strike price at options expiration. Maximum profit equals middle strike minus lower strike minus the premium.

What is the #1 rule in trading?

Rule 1: Always Use a Trading Plan

A trading plan is a set of rules that specifies a trader's entry, exit, and money management criteria for every purchase. With today's technology, test a trading idea before risking real money.

What is the 5 3 1 rule in trading?

Intro: 5-3-1 trading strategy

The numbers five, three and one stand for: Five currency pairs to learn and trade. Three strategies to become an expert on and use with your trades. One time to trade, the same time every day.

What is the golden rule of trading?

Let profits run and cut losses short Stop losses should never be moved away from the market. Be disciplined with yourself, when your stop loss level is touched, get out. If a trade is proving profitable, don't be afraid to track the market.

What is the best EMA number for day trading?

A 9 or 10-day moving average period is the best-moving average for intraday trading. However, 21-day EMA can be also used for day trading but you have to apply another technical indicator in combination with moving averages crossover to know the trend reversal.

What EMA is most effective?

Experts suggest that using 15-minute EMA is most effective for intraday trades that are carried out during periods of high market volatility. To interpret the 20 EMA, you need to compare it with the prevailing stock price.

What is the 12 50 EMA strategy?

This strategy uses the 12 day and 50 day Exponential moving average (EMA). Trading rules: Buy when EMA 12 crosses above EMA 50 and Price is above EMA 12. Sell when EMA 12 crosses below EMA 50.

What is the most powerful pattern in trading?

What is the 3 5 7 rule in trading?

The strategy is very simple: count how many days, hours, or bars a run-up or a sell-off has transpired. Then on the third, fifth, or seventh bar, look for a bounce in the opposite direction. Too easy? Perhaps, but it's uncanny how often it happens.

What is the simplest trading strategy ever?

In closing, trading horizontal levels with price action signals is the primary technique that I use to analyze and trade the market. It is essentially the “foundation” of my trading strategy and I believe it truly is the “simplest trading strategy in the world”, as well as the most effective.

What is 1% straddle strategy?

A straddle is a neutral options strategy that involves simultaneously buying both a put option and a call option for the underlying security with the same strike price and the same expiration date.

Which is best straddle strategy?

- Straddle based strategies are best used when you expect a rise or drop in volatility of the underlying. - A long straddle takes advantage of a sudden increase in volatility or vega, which can happen during times of an uncertain event.

Which is cheaper strangle or straddle?

In a straddle you are required to buy call and put options of the ATM strike. However the strangle requires you to buy OTM call and put options. Remember when compared to the ATM strike, the OTM will always trade cheap, therefore this implies setting up a strangle is cheaper than setting up a straddle.

What is the 5 3 strategy?

The 5-3-1 rule in Forex is a trading strategy based on three key principles: choosing five currency pairs to trade, developing three trading strategies, and choosing one time of day to trade.

What is the 1 2 1 option strategy?

The basic butterfly can be entered using calls or puts in a ratio of 1 by 2 by 1. This means that if a trader is using calls, they will buy one call at a particular strike price, sell two calls with a higher strike price and buy one more call with an even higher strike price.

What is the 33% rule in trading?

Divide the total lot volume you have traded by the number of executed trades to find your average lot size. So your trades must be between 0.5 and 4 lots. Any trades that fall out of the range will be removed at time of withdrawal plus you cannot have 1 trade make up more than 33% or more of your profit.

What is the 25k day trading rule?

What are the PDT rules? PDT rules come from the Financial Industry Regulatory Authority (FINRA). Under the PDT rules, you must maintain minimum equity of $25,000 in your margin account prior to day trading on any given day.

How much money do day traders with $10000 accounts make per day on average?

With a $10,000 account, a good day might bring in a five percent gain, which is $500. However, day traders also need to consider fixed costs such as commissions charged by brokers. These commissions can eat into profits, and day traders need to earn enough to overcome these fees [2].

What is the 70 30 trading strategy?

The strategy is based on:

Portfolio management with 70% hedge and 30% spot delivery. Option to leave the trade mandate to the portfolio manager. The portfolio trades include purchasing and selling although with limited trading activity. Optimisation on product level: SYSTEM, EPAD, EEX, periods, base, peak.