Jan21W4 ROI

Jan22-W4: Mean reversal trade gone well

With less than Rs. 5 lakhs as trading capital, I did not plan to trade this week. However, the first 15 minutes candle of January 24th tempted me to take a positional trade. I took strike of 16450 PE which was very very far OTM.

I did not expect that any management would be required but the market kept falling till 2 PM or so. During this time, I kept adding positions. I obviously ran out of money quickly despite taking hedges. I rolled in the strike and ran out of money again.

With Wednesday being a holiday, the options started deteriorating fast and I was able to close the position in profit. Almost same story unfolded on Thursday as the market opened very week. I took some mean reversion trades which paid well.

Overall, I felt uncomfortable with limited capital availability but this much capital should be good enough for any such opportunities in future also.

So I traversed through the following candles during the week:

Net Profit (after deducting brokerage)Capital deployed (approx)Week’s ROIAnnualized ROI for this weekTotal no. of weeks traded till todayAnnualized  return till today
Rs. 19,358.26Rs. 498349.543.88%625.5%3378.08%

The following is breakdown of week’s positions

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.

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