In last post, I shared a trade calculation in which main position gone wrong. I didn’t occurred loss in that trade as my hedging position has given good profit.
As i said in last post also, our loss is limited, if position goes wrong, this is due to Hedging. We exit main position at predetermined price, And the exit of second position (i.e. option bought as hedging) depends upon the trend. I exit simultaneously both positions, if main position in profit. And I exit the hedging position at predetermined target, if trend reversed & main position fall in loss. The hedging option recovers loss & sometimes it gives good profit than loss occurred in main position.
In last post I hav given example of live trade in CANBK MAY CONTRACT traded on 08 May 2023.
Lets see another live example. I have calculated it in BAJFINANCE MAY CONTRACT.
On 08 May 2023, our premarket levels are as below, for more details, you can see it in this post.
Now see the chart of Future contract below , which explains the trading positions.
As you see in above chart image, the trade is carried out on 09.40 AM. This is the main position (I Shortsold Fut), in this chart, you can see that the position has triggered the stoploss & exited it by short covering on 10.45 AM, & the hedging (i.e. ATMCE) exited after some move on 12.05 PM . which is shown in below chart.
Here is the summary of the trade.
The Lot size is 125 of BAJFINANCE FUT.
Trade in Main Position:
FUT SHORT @ 6503.50
FUT BOUGHT @ 6601.10
Loosing points = -97.60
Trade in hedging Position:
CE LONG @ 127.25
CE EXIT @ 262.05
Gaining points =134.80
Total points = +37.2
Profit = 4650/-
The summary is our position is not in loss, I got good profit, even trade in main position gone wrong.
I thought to share this trade with readers, because Its must that we should know the profit or loss when trend goes wrong.
All in all, My experiments with MUDRA Strategy is very good whether the main trade shows profit or loss the summary is position most of the times.
Thanks for reading, Happy Trading! Stay Profitable! enjoy!
- *NOT FOR TRADE.
- *T & C APPLY.
- © eaglemoney.in
- *Use this Strategy ONLY FOR paper trading.
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