May22 W1 P&L

May22-W1: One of the best weekly returns

Yes, I made it big this time. A weekly return of 4% is way above my expectations. The best part is that I did almost everything properly. I need such returns from time to time because no matter how good it gets, there will always be a few weeks who will take away a lot from me. Is 4% the best that this strategy can deliver? I don’t know. I have earlier seen weekly return above 6% also but unsure if I was doing it right back then.

More than 50% of the total return came from mean reversion trade which was deployed on Wednesday, and was held till Thursday. The surprise rate hike gave that wonderful opportunity. Luckily, my wife alerted me about it. I took the initial  trade but had to soon start averaging quickly. By the end of Wednesday, I was sitting on 22 lots. I was expecting to earn 50% of premium but Thursday open was a dream come true and I earned more than 90%.

The rest of the profits came through the standard strangle trading which I deploy. Most of them came on Wednesday via call options as the market was slipping in deep red. I did well to aggressively roll-in the strikes. I believed on my analysis. I now have started measuring price action which is helping in setting strategy on daily basis.

With such a return, I have reasons to believe that I am doing well. I must maintain the rhythm.

Net Profit (after deducting brokerage)Capital deployed (approx)Week’s ROITotal no. of weeks traded till todayAverage weekly  return till today
Rs. 61,938.65Rs. 1540927.704.02%42.12%

DISCLAIMER: I am not a SEBI registered adviser. All the information provided on this website is for educational / informational purposes only and should not be taken as investment advice.