Author: shyam

About Us

Our Mission

The StockViz mission is to make modern investment practices and systems affordable to the average Indian investor to help people trade and invest better.

People

shyamShyam Sunder has over 10 years of experience in investment management, analysis and algorithmic trading. He worked at Merrill Lynch as a trader on their ABS CDS desk in New York. Having had to build his own tools specific to the Indian market to help manage his investments better, he founded StockViz to bring those tools to a wider investor base.


Dipanshu picCol Dipanshu Sinha, SM took premature retirement from the Indian Army as a Colonel in the Assam Regiment. Initially specialising as an Army Aviator, he has subsequently served with distinction in frontline infantry roles and has substantial experience in counter-insurgency operations earning his stripes with multiple tours of duty in Kashmir and various appointments in command and staff roles. A graduate of the Defence Services Staff College, Wellington, throughout his career he felt the absence of financial and tax planning information which was accentuated by peculiar service conditions and limited exposure to money management skills training in the regular professional courses. He has been one of the driving forces behind the conceptualisation and establishment of Stockviz and is a co-founder. Dipanshu is responsible for managing day-to-day operations, strategic planning, business development and oversight and policy advice for the firm’s investment activities.


Trading Services

We offer trade execution services through Composite Investments. Open a Demat account through StockViz and experience the difference!



Volatility Surface: RELIANCE

image

Volatility surfaces is an important trading tool for option traders. Here’s a vol chart of RELIANCE OCT25 options. Note the spike in IV around earnings announcement, the fall-off in IV above and below the ATM strike (800), the spike in vol and the dramatic drop in lambda due the “fat finger” trade on the 5th. [stockquote]RELIANCE[/stockquote]

Our option strategy model, however, is not flashing any profitable trades in this scrip right now, owing to the uncertainty around the trend of the underlying and the high IV around earnings season.

Enhanced by Zemanta

Weekly Recap

NIFTY.2012-10-08.2012-10-12

The NIFTY ended on a negative tone, drifting down -0.64% for the week.
Biggest losers were DLF (-9.57%), SIEMENS (-7.74%) and BHEL (-7.01%).
And the biggest winners were SUNPHARMA (+4.50%), JPASSOCIAT (+4.45%) and ULTRACEMCO (+3.73%).
Decliners eclipsed advancers 32 vs 18
fii.2012-10-08.2012-10-12Gold: +0.46%, Banks: -1.14%. Infrastructure: -1.50%

Net FII flows for the week: $1,345.00 mm (Equity) and -$20.21 mm (Debt)

 

Daily news summaries are here.

Setting Trailing Stop Loss Percentages

Using a Trailing Stop Loss (TSL) is one of the best ways to limit your downside and protect your winning trades. Instead of relying on your gut, here’s a straight-forward way to derive the appropriate TSL percentage for your trades.

ATR based TSL Percentage

ATR stands for Average True Range. It provides a measure of volatility that incorporates gap/limit moves. The range of a day’s trading is simply high – low. The true range extends it to yesterday’s closing price if it was outside of today’s range.1

To set a TSL percentage, just multiply the latest daily ATR value by 2 and divide by the previous close.

What you are doing here is simply attaching a risk tolerance level (2) based on the stock’s intra-day moves averaged over a period of time.

Example

technical analysis chart

For example, if you were trading [stockquote]COLPAL[/stockquote] today, you would set the TSL to

2 * 30.5/1,250.65 = 4.88%

You can use StockViz to set a TSL alerts for your trades. Read this to see how.