HSVashishtha’s journey in Derivatives market – told by Shivang !

In a recent “spaces” on twitter, @shivang_ran was hearing about @hsvashistha16’s journey in the derivatives market. A compilation by him ↓

1️⃣ How he started his trading journey?

Started in 2011 with a simple  plan of making money by trading in stocks. He came in the markets with capital which didn’t even belong to him.

Started off with the equity segment. Faced initial losses. Made some money in b/w but was in losses on a net basis.

2011-2013: Lost around 5-6L in the market, which was his max limit then.

2013: Got a job in the broking industry. This is where he got an exposure of the market.

2013-2015: Worked as a dealer. Didn’t enjoy the work there. This was also the time he got his NISM certification.

2015: Quit his job and got into the Pharma Industry.

2016: Returns to the markets. Once a trader, always a trader. Was trading with small amounts during this time.

2016-2019: Struggling period. Returns were not at all consistent.

April 2020: Left his job. Had a capital of 20L. April 2020-October 2020, faced almost 15L loss.

He has grown his account from 5L – 4Cr in a short span of time. Which is really remarkable.

Selling and buying(both) are a part of his arsenal.

Since 2019, he has been an intraday BNF trader. Sells strangles primarily and also scalps in between when a delta move is visible.

He has been a profitable trader since FY19.

Believes just trading strangles can’t generate such sort of returns. Also does directional selling. Buying. Scalping.




2️⃣ What’s his process?

In the morning, looks for global scenario. Looks for near term, medium term and long term trends of the the market.

Homework includes looking at important supports, resistances of BNF. Previous day close and also previous day trend.

3️⃣ Strangle Selling

Makes strangles in the morning. Buys options wherever the market starts to trend. Aim is to keep the losses in check when there is a delta movement.

Usually his strangles are not open throughout the day. But, he keeps his strangles open on Thursdays.

Doesn’t do option buying on Thursdays.

Really quick with his execution.

4️⃣ Analysing Option Chain, OI Data

OI keeps changing. What is important is how you react to that data. If you are stuck in the position, you are not going to make money.

Look at the entire picture and then form a view.

5️⃣ Price Action

5m Time frame

Uses moving averages(50,100,200). Has no hidden indicators.

Also, checks higher time frames(15min, 30min).

6️⃣ Option Buying

Takes small trades and targets small points. Only does ATM buying.

Doesn’t deploy more than 5% of his capital in one trade while buying options.

7️⃣ SL

Never puts SL in the system. Has a mental stop loss.

Tries not to loose more than 2% of his capital in a single day.

When he is extremely sure about the move, that’s when he will take the trade.

Really focused while doing scalping.

If it is going against him, to a certain extent he keeps it, and then exits it.

8️⃣ Return Expectations

4-5-6% on a monthly basis

That’s a wrap!

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