09 Oct 2024 Algo Trading Live Demo |Algo software India | Trading For Beginners Share Market Zerodha

Summary

The speaker discusses the performance of their trading algorithm and market movements on a Wednesday, with a focus on the Bank Nifty expiry. They explain the challenges faced due to market volatility, which led to both call and put stop losses being hit. Despite this, they managed to recover some losses through strategic positions. They also highlight specific chart patterns and technical analysis, emphasizing key support and resistance levels. The speaker ends by inviting viewers to subscribe for more trading content, including strategy videos and live market insights.

Takeaways

• 📉 Today's market was highly volatile, with both call and put stop losses hit quickly.
• 📊 The performance of the automatic trading algorithm (algo) resulted in losses due to the volatility.
• 📈 Bank Nifty is showing strong support at 44 weeks, indicating that it may not fall significantly from here.
• 📉 The daily chart shows resistance, but the support zone is still holding up, which may lead to sideways movement or a rise.
• 💡 Bank Nifty's last low was 5379, and it didn’t break below it, so the support remains intact.
• 📉 The 50400 level is seen as the downside target, with the market potentially ranging between 51000 and 5400.
• 🛑 The algo performed poorly due to the sudden volatile moves, but the user managed to avoid significant losses by selling Bank Nifty calls and puts.
• 💼 In Zerodha, an ongoing trade in HDFC Bank is still at around 14000, with expectations of movement towards 1700-1800.
• 📉 The market started with a big upward candle but quickly reversed after 11:30 AM, leading to losses.
• 📊 The user discusses strategies for weekend trading videos and learning materials to share with subscribers.

Q & A

What was the key focus of the video?

The video focused on the performance of the speaker's algorithm in the stock market, specifically discussing the Bank Nifty's volatility, the performance of his trades, and the strategy he used.

How did the speaker describe the market's volatility on that day?

The speaker mentioned that the market was highly volatile, with both the call and put stop-losses being hit within seconds, indicating a sudden and rapid movement in both directions.

What was the speaker's analysis of the Bank Nifty weekly chart?

The speaker observed that the Bank Nifty was taking support on the weekly chart and believed that it was unlikely to fall significantly from the current levels due to strong support.

What trading strategy did the speaker use with Bank Nifty on that day?

The speaker sold both call and put options, anticipating a sideways market. He sold a slightly more expensive call and a cheaper put to ensure a positive outcome even if the market moved slightly downward.

What was the performance of the speaker's algo trading system on that day?

The speaker's algo trading system experienced a loss due to the high market volatility, with stop-losses being hit on both sides. Despite this, the speaker remained optimistic as it had been performing well in the past days.

What are the support and resistance levels identified by the speaker in the Bank Nifty chart?

The speaker identified 50,400 as the support level and 51,200 as the resistance level. He mentioned that the market was likely to move within this 600-point range unless there was a clear breakout above or below these levels.

What was the speaker's outlook for the Bank Nifty after the day's trading session?

The speaker expected a continued sideways movement in the Bank Nifty as it had not broken key support or resistance levels. He anticipated that the market would stay within the range until a breakout occurred.

What was the speaker's current position in HDFC Bank stock?

The speaker had a position in HDFC Bank and mentioned that the stock was around 14,000. He was expecting it to rise to the 1,700–1,800 range if it gained momentum.

What future strategy did the speaker plan if his current trades resulted in losses?

If the current trades led to losses, the speaker planned to make a December trade using a similar strategy, expecting to recover the losses and achieve profits in the long term.

What was the speaker's advice regarding market losses and profits?

The speaker advised viewers to accept occasional losses, as profits would follow in the long run. He emphasized that consistent strategies would eventually lead to profitable outcomes.