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  • Manu Bhatia System

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    Chetan Sharma
    326 views3 pages
    This document outlines a trading system that focuses on identifying breakouts from predefined daily highs (PDH) and predefined daily lows (PDL) to generate trending moves. It describes selling options when a breakout occurs in favor of the trend to benefit from time decay if the trend continues or the option consolidates. Key aspects include waiting for the price to spend 20-30 minutes in the previous day's range before validating a setup, defining a breakout as a 5-minute candle closing above or below the PDH/PDL, and placing the stop loss behind the nearest pivot point in the option rather than the index.

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    Manu Bhatia PDH PDL Notes from Webinar

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    This document outlines a trading system that focuses on identifying breakouts from predefined daily highs (PDH) and predefined daily lows (PDL) to generate trending moves. It describes selling options when a breakout occurs in favor of the trend to benefit from time decay if the trend continues or the option consolidates. Key aspects include waiting for the price to spend 20-30 minutes in the previous day's range before validating a setup, defining a breakout as a 5-minute candle closing above or below the PDH/PDL, and placing the stop loss behind the nearest pivot point in the option rather than the index.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    326 views3 pages

    Manu Bhatia System

    Uploaded by

    Chetan Sharma
    This document outlines a trading system that focuses on identifying breakouts from predefined daily highs (PDH) and predefined daily lows (PDL) to generate trending moves. It describes selling options when a breakout occurs in favor of the trend to benefit from time decay if the trend continues or the option consolidates. Key aspects include waiting for the price to spend 20-30 minutes in the previous day's range before validating a setup, defining a breakout as a 5-minute candle closing above or below the PDH/PDL, and placing the stop loss behind the nearest pivot point in the option rather than the index.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 3

    MANU BHATIA TRADING SYSTEM

    SYSTEM

    PRE DEFINED

    TRADING EDGE

    IS THE DIFFERENTIATOR BETWEEN WINNING AND LOSING ( DIFFERENCE BETWEEN TRADING AND GAMBLING)

    TRADING EDGE = (%Avg Winners *Avg Win)-(%Avg Losers *Avg Loss )

    PDH & PDL AE REACTION POINTS

    BREAK OUT FROM PDH /PDL - CREATE TRENDING MOVES

    SELL OPTIONS IN FAVOUR OF TREND

    IF TREND MOVES - THEN PREMIUM + TIME DECAY


    IF CONSOLIDATES - THEN TIME DECAY
    D GAMBLING)
    RULES

    PRICE SPENDS ATLEAST 20-30 MINUTES IN PREVIOUS DAY RANGE


    IF PRICE OPENS OUTSIDE PDR THEN SETUP IS NOT VALID
    IT SHOULD BREAK OUT FOR THE FIRST TIME BREAKOUT IS TERMED AS CLOSING OF 5 MIN CANDLE
    BO CANDLE ON 5 MIN TF IS IN DIRECTION OF BO/BD
    60% OF CANDLE BODY+WICK IN FAVOUR OF BO/BD

    TRIGGER
    CHOOSE STRIKE PRICE OTM FROM BO / BD POINT
    AT CLOSE OF BO CANDLE, SELL PE IN CASE OF PDH BREAK AND SELL CE IN CASE OF PDL
    KEEP SL BEHIND NEAREST PIVOT ( OR TURNING POINT) OF THE OPTION AND NOT OF THE INDEX
    CLOSE AT SL OR EOD

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