The Intraday Options Strategies Pro Traders Actually Use !! #Face2Face with Mr. Abhishek Kadam

Investment in securities market are subject to market risks. Read all the related documents carefully before investing. What is the logic of 79, 1 and 20? Actually, this is the holy grail of the market. Hello welcome. One more face-to-face. Systematic trading, algo trading, AI based trading. Are you enjoying? Are you getting to learn? Very good. I am enjoying a lot. You don't know. And if you have joined me for the first time in this video, what are you doing? Join permanently. Something good is happening here and it is happening right. How to do trading? How to do systematic trading? This is my theme for the last few days. I am trying to learn from people who are genuinely doing a good job around this theme. And join me in this journey. My name is Vivek Bajaj. I am in Calcutta. Now I speak very proudly in Calcutta, Bengal. Our Bengal is also changing. Before this, we used to speak fearfully. So we have come from Bombay, Maharashtra. Our friend who has seen a lot of face-to-face, was inspired by face-to-face, was motivated by people who used to come face-to-face. He started his trading career when he was in engineering college. And today he is doing good trading. Okay. Let's call our next face-to-face guest, Mr. Abhishek Kadam. Thank you, sir. Hello. Namaskar. Namaskar sir. Thank you so much. How are you feeling overall? I am welcoming you. It's been more than 5 years since I saw a face-to-face video. Thank you. I like it a lot. You know, many people come to me and say, Sir, my life's target is to come face-to-face with you. Actually sir. I like it a lot. Wow. People have made it a target. So you are very welcome. Thank you, sir. Because actually, when you come face-to-face, people know that you will come filtered out. You will not invite anyone. Like I said earlier, paid promotion is nothing else. You will filter, you will ask four places, if it is worth it, then only you can. So this thing is always a goal for every trader to come here. Thank you so much, sir. Thank you so much. Thank you. I try. See, we can only try as much as the filter can be at our level. There are people smarter than us who make us stupid. That's okay. We will be a little stupid. We also keep a ride because we are stupid too. Right? Let's go. Mr. Kadam, we will know a little about your journey, how it all started. You are a young guy. You are not as old as I am. You have completed engineering by now, but you have gained a lot of good knowledge in the market. So tell us everything about you and then we get into that beautiful presentation you have made. I enjoyed watching your presentation. Very structured. Thank you, sir. Sir, this presentation, you know, I would like to say thank you. My teammate, Aniket, who made this very beautiful presentation. He is also the speaker in a lot of, I mean, for the mutual funds. But he told me, I said, brother, this is not my job. I couldn't make it. He said, brother, I will make it for you. So always thank you for that. So we will go through this presentation. Friends, if you want to take the full essence of the presentation, you will have to wait till the end. There will be no entertainment. There is a serious discussion here. So you know that, right? Secondly, there is a disclaimer. We don't have any commercial relationship. We don't have any commercial relationship. Not now. I will tell you later, but not now. Okay. And for me, he is a trader. And he does trading, systematic trading. That is it. Beyond this, what are his services? What does he do? What will he do in the future? Especially what will he do in the future? It is not my responsibility. It is their responsibility. Understand this and it is your responsibility. Whatever you understand. Will you understand? Because we are SEBI registered. We come under the regulator. So we can't do anything wrong anyway. All right. Mr. Kadam, the show is yours. Thank you, sir. Let's start. Okay. So we will see this line. I have explained my small journey here. You must have seen it. I am a mechanical engineer, sir. So I am a mechanical engineer, first of all. I have done mechanical pass out in 2019. So, sir, I am coming from Maharashtra. And you know, in Maharashtra, in Marathi families, people are scared about stock markets. And if someone wants to make a career, people get scared. No no. I mean, a lot of things become problematic. I mean, people still don't understand. I mean, I know that the Gujarati, Marwadi and all the people, they have dominated the industry. But they don't have that belief system in Maharashtra. And I come from a small town in Mumbai, Maharashtra, from Kalyan. So I saw this in my journey. I mean, I tell you in my journey. Like in engineering days, I searched on Google that where money is made from, where the rich are made from. So there are a lot of 2-3 options. One of them was the option, like the real estate option came. Okay. So one option came, stock market. And sir, I didn't know anything about the stock market. Zero knowledge. Literally zero knowledge. Hello, my name is Vivek Bajaj. I have more than 20 years experience in stock market. And I can suggest you, if you are serious about stock market, download StockEdge app. It will really help you in your journey of wealth creation from stock market. So there were classes in our police station. So Dr. Ravi, something was his name. So I joined those classes. So to join the classes, dad asked a lot, what is this, who does this, etc. But mom supported at that time. At that time, I still remember, I had 18,000 rupees fees. It was raining heavily. And I said, no, no, I have to do it. So I used to go there. So you know, they sell dreams in the stock market. They sell dreams, a lot of lavishing. So they also sold us the same dream. For example, they told us that Infosys shares dividend is like this. So I went and saw. Yes, what is the matter? People are the owners of thousands of crores in the stock market. So I saw all this. So I said, wow. So then they taught us an instrument for trading, that is EMA. And what did they do in EMA? 5, 6, and 10. Selected EMA like this. And they gave it the color of the triangle. For example, white in the middle, orange on top, saffron on the bottom, which is our green. So they said that as soon as the Indian flag is straight, you buy it. If it is upside down, you sell it. So I was happy. I thought I got the mantra, Abhishek. Now don't take tension, now it's just a printing machine. So when the learning started, I said it's done. Now there is no tension. So then I used to be very smart. No, no, we will do services like this, we will do this, we will do that. But miserably failed. Because as soon as I used to buy EMA, it sold upside down. At that time, I did not understand what position sizing is, what is risk management. Most importantly, what is trading psychology? I did not understand anything, literally sir. So because of not understanding those things, I lost some kind of chunks into it. So I said, I can't ask for it at home. I am a student. So what to do? So somehow convinced mom and dad. And whatever was the small loss, sir, 1.5 lakhs to 2 lakhs. But at that time I took an oath that no. If you want to make a career, you have to make it in this only, sir. So this journey started from there. So it's not that easy, market. Markets are tested by the patient. I mean, I have seen in this small journey, that the market takes a test from your patience, that how long do you last. So the breakout that comes in terms of money, in terms of your trading, that comes after a time. That comes after a system of knowledge. So what did I do? After that time, I met a lot of people. How is trading? So I have a habit of asking people, how do you trade? How do you do it? Tell me. So anyone. I have also shown you the video of RS. I don't trade stocks. Still, there should be knowledge. So this was a habit from the beginning. So after that, after B.B. Passout, I did a job in a small company. After that, I got an opportunity. I will not take the name of the company in one of the securities, for the dealer. So when I did the dealer's job, then I understood one thing. So I did NISM Passout. I got an opportunity. Because mechanical engineers, they have a different profile. They said, Abhishek, you pass NISM. I passed NISM and started in it. So after starting, sir, I had as a dealer. So in that dealer, if I take 1000 or 2000 shares, one rupee or less, even half a rupee, then the dealer used to abuse me. As a dealer, he doesn't understand that you have to take this share at this rate. Sorry sir. Take it in the market. So I learned that, sir. Actually, I learned a lot. And at that time, maybe I will take the name. If you want to cut, you can do it. Mr. Mitesh Patel, whom you interviewed, he used to do in Reliance Securities. So he had a Baroda account. And I was in Reliance Securities in Mumbai. So what I used to see, the volume of our branch was 30 crores. And that person alone has a volume of 60-70 crores. So, they used to tell us to target. So, what will we target? He is doing it alone with our volume. So, always that branch is ahead. So, I said, what does he do? Then we had some access. So, I saw, what a great job he does. I understood that people do such a big job. But that was not my forte. Because, sir, I could not take a trade by looking at the screen or the chart. I used to get scared. And after losing that money, I could not take a trade. Literally, sir, my hands used to tremble. So, then your videos used to come. So, I remembered that you had taken a video of Jai Nifty Wizard. If I am not wrong. So, then there were some such platforms available, sir. Where we can put our rules and backtest. Okay. Yeah. So, I did backtesting on that platform. So, backtesting came in such a way that, Baba, this is your max drawdown. This is your strategy. So, what should you do? If there is a max drawdown, then I started making the system. So, I got a little confidence that such a system can be made. So, at that time, my salary was around 15,000 rupees. Okay sir. So, I said, I take 5 lakh rupees from my family. I have to earn 3 taka. 15,000 salary will be spent. I will connect with the market. I mean, I took this thought process, sir. Which is not 3% easy. Now I understand a lot of things that 3% is not easy. In such a scale. So, I started by taking 5 lakhs from my family. So, I started. I made a systematic strategy. Then I used to come and order at home every day. After ordering, I used to watch serials with my mother. Stop-losses used to run in the market. It was SLM then. So stop-loss. My mother said, okay. Stop-loss has gone or not? To see. Then to come again. So, in the day, we used to do TBS. We were time-based models. So, we used to do time-based selling. Go and sit there. Don't do anything. So, by doing this, 3-4. So, at that time, sir, the market regime was very smooth. There were very few manipulations like now. So, we used to get money. So, I understood. Okay, I am on the right track. So, then Twitter. Sir, Twitter is also a good teacher. I will say. Sir, you may have become a little inactive now. But Twitter is a very good teacher. So, at that time, I used to watch PNL. A lot of people used to post big PNLs. So, Twitter taught me a lot of things. I contacted a lot of people on Twitter. How do you do what I tell you? How do you apply in which firms? There are a lot of things, sir, literally. So, Twitter taught me a lot of things. So, one person from Twitter taught me that if you order by hand, then why do you hit by hand? Use a platform. Go there. There is a platform called MyAlgomet. Go there. Select your TBS time there. Put it. It will be done. I said, okay, this also happens. So, I said, okay. So, then he started with API. Sir, put execution etc. So, the system was automated. So, then I was doing this alone. So, it was always a dream big to do something big. So, I said, it's better than doing it alone. Like I have written here that in 2021, when I went alone for 6 months, I said, let's do something together. So, my engineering friends, like Prajol, Ashwin and my teammates. So, I will tell you one thing. The youngest person in my team is 22 years old. I mean, in terms of, he is managing more than FPI funds. 154 is managing all. I mean, he manages everything on his desk alone. He will sit alone. If you want, you can visit Sir Kalyan anytime. I mean, I built it with him. He joined when he was 20. And he met me in the gym. So, he is interested. So, this is how the journey started, sir. So, when we met the college friends, we started in the engineering industry. Then gradually, doing decent work. The experience has increased well. A lot of good people know. So, knowledge sharing keeps happening. So, what have I done? I will tell you in the next slide. Whatever pillars have come in my work, whoever wants to make their career in the stock market, whatever pillars have come so far, I will share them. Because they can also change in the future. I mean, they can increase. Good journey. Thank you, sir. So, let's come to AlgoTrading. I have written here, Pillars of AlgoTrading. According to me. These are the pillars for me. So, the most important thing is strategies. Strategy is one of the pillars. Which is basic. Everyone knows that it is a pillar. But I have seen a lot of people, they come to the markets and they feel like come, press the strategy and go. Until you observe the markets, you cannot evolve. I mean, even if our podcast is going on today, I still observe the markets. Even now I have a new habit of watching GIFT NIFTY. What will happen next day? In the whole GIFT NIFTY. I can't trade. I have a habit of watching it. What will happen tomorrow? What will change in which basket? What are the things changing in the markets? So, we always say in strategy that you observe the markets. If any strategy is made, it will not last a lifetime. You will have to change with it. You will have to change from time to time. We started with a very simple strategy. Now we are doing different. Maybe we will do something more ahead of this. So, this is what I have written. Try to observe the markets. Make a rigid rule around observation. We have a paper on our desk. There we say that whatever you observe, write it down. For example, I observed the market from RSI. Now we have a tech team where we do backtest. But earlier it was not like that I observed this, I thought of working in this premium. So, we have observed the market and learned it. So, strategy is one of the main core pillars that you should have. But if you have rule-based trading, then you can really do a decent trading. I mean, whether you have a strategy or not, there should always be a rule-based strategy. There should be some rules of that strategy which can be important for you. I mean, it is important to implement. For this, I wrote the first slide. Simplicity is ultimate sophistication. Sir, we make the strategy very complex. I mean, I have seen that many people make such a complex strategy. Sir, I will show you in the coming slide what returns can be made and I mean, this is the disclaimer that whatever I will show in the future, don't implement it, do your own research. Just for the education purpose only. But some people will implement. Yes, why not, sir? Be careful. What you are doing or not doing is not our responsibility. Let's move ahead. So, the next slide is risk management. It is one of the core pillars, sir. So, in risk management, I mean, I have made a strategy. We will do this with sir. First, we will look at the pillars. After that, we will come to a strategy. We will make the strategy. After that, we will do its backtest. Instead of doing the backtest, I have done the backtest. After that, what is the position sizing? Position sizing is very key for me. My whole structure depends on position sizing. People who pay very little attention. I will show you how any strategy goes up to 10% drawdown and how it comes down to 2% drawdown. I will show you in the next slide. So, risk management. I have written that your most important factor is max SL of the day. Even if your strategy comes positive at the end of the day, but your day loss should be defined. That is the most important factor. Max loss for the month. For example, now your drawdown is 2% or 3%. If you hit 2%, this is the basic rule. You know your max loss for the month. After this hit, I have to stop. I have to go back to the drawing board and then come back. After that, the risk reward is the main important factor. There are many people who sell options from a distance. There is a risk reward of 0.5 to 0.8. But your minimum risk reward should be 1 is to 1. If you have 70% accuracy. Here it is written, avoid huge position sizing. We get a lot of news that there is a big theta. It is wrong to earn money with big positions. Here I have written a dialogue of Rakesh Jhunjhunwala sir. Risk no more that you can afford to lose and risk enough that win meaningfully. Risk no more that you can afford to lose and also risk enough so that win is meaningful. Nice. This is a dialogue of Rakesh Jhunjhunwala sir. Risk no more that you can afford to lose and also risk enough so that win is meaningful. Risk no more that you can afford to lose and also risk enough so that win is meaningful. The next pillar is optimization. We have made a strategy and also risk management. After that, we will come to the next slide. After that, we will come to the next slide. Why position sizing is important for me? By using position sizing, we have also utilized the unprofitable strategy. There is a very good video in which they have said that if your position sizing is correct and if the market is wrong then if the position sizing is intact if I am not wrong, right? So, position sizing matters a lot. I don't look at returns. Position sizing is very important for me. This is heart for me. I have given a small formula here. The formula of position sizing is here. For example, my risk amount is 2000 rupees. This is very basic. That's why I have said simplicity is ultimate sophistication. My risk amount is 2000. After that, I have one more thing which is very important that if you have no idea about the market, then you should not buy anything. If you have no idea about the market, then you should not buy anything. You should not If my SL point is 20, then I will trade 100 quantity. If my setup is made in which my SL point is 10, then my risk amount is 2000, so I will trade 200 quantity. So this formula, according to your position sizing, according to your result, according to your backtesting, will keep changing step by step by step by step. So this position sizing is a very important factor for me, sir. Yes, optimization. So sir, we have made a tool now, which is in the process, which our tech team has made. What we do in that, we have made so much data in that, why AI is also important, I will tell you in the coming year. If you have a strategy, so you, like people, the basic rule is that our strategy's drawdown should be 2x, so we stop that strategy. So what we have done, we have made such a tool, in which what we will do, if any strategy goes to 2x drawdown, earlier we used to do it manually. Now what we have done, in that tool, we pick it up, put the trade file, and tell it to optimize the AI. So AI says, what should be done at what time, which indicator should be used with which parameter, means literally everything is changed. I mean, I am also a tech guy, I am a mechanical engineer, but now slowly, it will have to evolve with the process. So optimization, this thing, this is very important. If you want to do it today, with AI, you can do a lot of things. Okay, your strategy, like what do we do a lot of times, sir, we have made a strategy, so we say, I do this, I do it better, we keep doing it. So what happens to me a lot of times, I make 5 different variants of a strategy, then I get confused, what should I do now? Everything looks good, then someone will say, no, everything will be in 5, no, AI, we go and ask AI, brother, you tell, which is one of the best strategies, why is it, and some changes will have to be made in it or not. I mean, normally, nowadays, the cloud of Anthropic, if you take its sonnet version, then it tells you everything, sir, so even a lot of people, who are in my friend circle, they implement the strategy from the side of AI, by putting an EPI, so it has reached this time, so this optimization, that if anyone is not performing your strategy, then you are better than stopping it, you ask him, why is it not working? and make it workable, execution, so execution is also a pillar for me, because you are trading with a size, and if you want to trade with a big size, then you have to make it workable, okay, so in the end, you have to make it workable, and if you want to make it workable, then you have to stop it. So, the implementation of the strategy is done by AI, and you have to stop it. So, the implementation of the strategy is done by AI, and you have to stop it. So, execution is the key, because trading with 10 lakhs, and trading with 10 crores, is a totally different game, okay, and if the same size gets bigger, then it becomes more difficult, so execution is the key, so now sir, we have given in execution, in execution, now a lot of options have become available, if you trade with API, then you, sir, should I take the name of symphony, can I take it? Say, say, no issue, no, no, easily, yes, so, now a lot of APIs have become available, like multi-trade, symphony API, which we use, everything that we run, runs with XTS symphony API, after that, normally, if you are a coder yourself, then you can do this execution, through python, through C++, and you can also make your own platform, it's all up to you, a lot of third-party vendors are available, sir, I have tried a lot in the market, I fail at many places, I learn, then I go to another place, but now, touchwood, we have made our own team, so execution is the key, so execution is the key, so execution is the key, so execution is the key, so execution is the key, so execution is the key, so execution is the key, so execution is the key, so we are shifting to our own execution, so we are shifting to our own execution, because we cannot do it directly, because there are a lot of problems, because there are a lot of problems, making strategies, the problems, but we shift slowly, but we shift slowly, from here to next, next one year, we will totally shift to our own OMS, and RMS, this is it, sir, you also talk a lot on these terms, that is, trading psychology, so sir, there are five quotes by Mark Douglas, which are my favorite, I have written them, okay, so because sir, whatever strategy you make, if the mindset is not there, what will you do, so a lot of people give up very early, so a lot of people give up very early, or think of the market in a different way, or think of the market in a different way, so the book, trading in the zone, which is my favorite, which is my favorite, anything can happen, which is my favorite, anything can happen, like today, like today, the trade deal is happening, the trade deal is happening, the Iran war is stopping, we don't know, anything can happen, what I have in my hand, my position sizing, and my where, so while going today, I am taking my where in control, value at risk, value at risk, if someone tells me, give me the top 5 concepts of the share market, give me the top 5 concepts of the share market, which everyone should know, I will definitely add the value at risk, I will definitely add the value at risk, in this simple language, what is your value at risk, if you look at it from the point of view of the portfolio, how much money can you spend in a certain time period, in a certain time period, if you look at it from the point of view of the portfolio, how much money can you spend baton, when, for, what day it is, what everything is going, what everything is going on, whether for two days, whether for six months, for a year, for which time you are measuring it. Secondly, what is your confidence level, this is a very important concept of statistics, the more you want to work in confidence, the more the value of the wire will be different 99% confidence, 95% confidence, the less you work on confidence, the value of the wire will be different And third, how much are you ready to take the Loss how much is the quantum of risk you are carrying in your position either intraday or overnight. I know that if that lower circuit opens, that upper circuit will also open, I am ready to lose this money So anything can happen If you want to earn money from trading, you are not really afraid, you are not afraid when you get the confidence, the courage is the key. After that sir, when you genuinely accept the risk, you will be at the peace of mind So the whole thing happens smoothly. So trading is a simple probability game, as I said, that risk management is the key, in which your 1 is 2 1.5 or whatever is slowly this is slowly moving towards the path. So this is the path of trading How much algo trading helps to manage this psychological negativity around psychology? Most important algo trading like anything can happen, it's a universal truth. Yes yes. So when you are doing algo trading, if you want to put this in the model that anything can happen, then how will you introduce it? Anything can happen or how can you do it through algo trading? First of all, how many errors can come? Execution error, it can come, my server can get down, API can fail, anything can happen. For that, for me, like NSC also came, NSC was a very good model for me. So I was very happy with it. I was very happy with it. I was very happy with it. I was very happy with it. It was a very good model for me. I was very happy with it. I could also talk with my friends as well. I was very happy with it. It was a very good model for me. It was a very good model for me. It was a very good model for me. It was a If I have taken an option of Rs. 20 in front of it, then my maximum loss can be Rs. Accordingly, my position sizing is set. And accordingly, the wire is visible in my big account. So this is within your options. How much premium you have brought home in the net, that is your risk. But if someone is trading in the future, how will he remove the wire? Through synthetic futures. Synthetic futures are in the options, right? No, means by buying futures, he will protect from the put. Suppose I have bought the futures of an ICICI bank. Now how will the wire come out? Sir, if you have taken the future of an ICICI bank, then why am I calling it a synthetic future? Whatever future I have taken from the ICICI bank, then I will put buy a put of 10% or 20% ahead of it. So my value at risk has been managed, sir. Okay okay. So you will always hedge? 100%. Even intraday, even positional, hedged. And options give you an advantage that you can hedge. So you never do pure speculation in futures? I don't have the courage, sir. I need peace of mind. So your every trade will have hedge as it adds to the peace of mind. That's what you are saying? This difference will only be of the broker-to-broker. First, the position of the sell will go. Within a second, my buy position will stand. Somewhere, there are a lot of problems in rule selection, there are marginal errors. So now we do buy first and then sell. But first it will go to the system. So you will encourage people to do spread trading? 100%, sir. Not do blank option buying and selling. That's what you are saying? 100%, sir. Even if you sell options, your value at risk should always be managed. Because anything can happen to you. Anything can happen, sir. Anything can happen. If Trump, our US guy, says that I will put a bomb on Iran again, then I don't know. For example, I will give you today's example. XYZ, if you want, I can show you. But the risk will be seen there. But still I will tell you. So what did we do in that? Assume that my X amount of money is made. So if I cover the wire in that, then I have seen my 10 TK wire. So how much will I close when I go down, it is in my thought process. If I have XYZ money, my money has been made. After that, I covered the wire. So how much of this will fly, my thought process is ready. My money can go this much. If there is a gap down or gap up on Monday, I am ready for that. Position sizing is intact. There is no problem. 20% of any big account is allocated in this strategy. End. So I will say in the coming time, why do we do so much for positional? I mean, what things do we do to see our peace of mind? So value at risk is an important factor. Many people say that there is a cost in hedges. Sir, there is a cost in hedges, but it will come one day, which will save you. It can come anytime. We don't know. It can come anytime. Just like there was a tariff at that time. Sir, at that time, I think the market is always discounted, sir. I mean, the market knows everything. I mean, 100%. So at that time, there was a short covering, and the market was closed up. And all our puts were sold. We had covered a very small quantity. Even then, sir, there was only buy in front of my put. The market opened. We made decent money into it. But still, that 5% sir, I saw people's accounts were closed. The people who had worked so hard, 10% to 8% sir, what will we do? And on such a big scale, you know what will happen, but still. So risk control is the main factor, sir. Wow. I think what I wanted, Abhishek to talk about this more, because actually, this is the holy grail of the market. Risk management. There is nothing else. This moving average strategy, RS strategy, my strategy, I have told you all for free. Now you are making money or not, you think about it. Maybe you are not making money, I am making money. Because my risk management is very solid. The sooner a person understands this, the sooner he becomes a mature trader. Actually sir. People struggle, they are not able to trade for 5 years. Why? Because they don't do post mortem. They don't analyze old trades and see that there was a problem in my risk, there is no problem in my strategy. Because the best strategy, the top hedge fund in the world, its accuracy is only 40%. 60% of the time they are wrong. But they still generate 30% CAGR over a period of 30 years. Why? Because they have money management and risk management. This is 100%. And this clarity is necessary because telling Algo that this is my risk parameter and you trade according to this, this is not an easy thing to do. You can train the strategy of Algo. If the moving average is cross over, then take it. But when to take what position, when to increase the position sizing, when to square up, that is the main art which you get to know while doing it. Actually sir, you said a very good point that those who understand risk management, they have matured. So my next point is also the same. I will tell you in terms of, this is about AI, as I said, in the coming time, we will talk about that too. Okay, this is one of my pillar, connections. This is actually a pillar. The reason is, if you are not a person who talks, if you don't talk to people, if you are not connected with people in the market, then somewhere you are not able to grow. Sir, like now in 5 years, I follow a lot of people on Twitter, on Instagram and on this. I saw that after 5 years, they are not existing. Literally, there are a lot of people like this. I saw that they are not existing. I said, how? Somewhere I said, in survival, maybe I have won. But I said, connections, that he understands. Like now, like till last year, we are doing just zero DT trading. Zero DT trading. This concept became very famous in the US and slowly, its fire spread all over the world. Zero DT trading means that the contract is expiring today and today you are trading for that contract. By the way, in India, zero DT trading has been going on for a long time. Since the derivatives of options and futures came, if you are trading on the day of expiry, then technically you are doing zero DT trading. But this became more prominent when weekly contracts came. And in weekly, in every day, there is a contract available. Sometimes Nifty is available, sometimes Bank Nifty, sometimes Sensex. There is a contract available in which you can trade actively. So, essentially, every day, you are trading in new contracts, in options. The concept is interesting. Some people make good money by doing this. But, definitely, there is a risk in this. Because the time value in this, its role becomes very high. Because if the options are expiring today, then technically the time value in it is zero. And, if you work in the right direction, then you can make money in it that day. If, then people can call me friends or trading mates. So, we used to say, brother, what are you doing? So, these will be friends. What are you doing? I am doing this, this is going on. When a connection is made, it becomes a very big pillar. Okay, do one thing. Now, there is a positional strategy. You deploy a little in it. You do research on it. Do one thing. Now, option buying is going on. You put option buying too. So, there are opportunities. You understand this after sitting with very good people, after sharing the stage. But, only with the profitable one, not with the gurus. Your network is your network. Network actually. True true. I just want to add one thing to this. You said that the old people do not exist. See, there are two types of people. Because I have done so much face to face. I also know the old people since 2018. Yes. I am meeting new people. Now, you are on our new list. There are two types of old people. One is, who had never been a trader. He was giving money in the market and enjoying it. Yes. Right. One is, who actually worked and made money. That second category, now he finds Twitter or any such networking noise. Because in the beginning, you have a desire to stay in connection with a lot of people. Right. But, as you mature, as you reach an age, right, you are very young, I have reached an age. After a point of time, you don't want to meet many people. Actually. Because you have made your circle. Yes. You want to live in that circle. So, those who mature in the market, they become very limited. So, you won't see any activity in Twitter. But, if you talk to offline people, they have really grown. Beyond Twitter. That's why they are not in Twitter. So, let's not make this assumption that you are not on Twitter. It was earlier. It is a failure. It is not a failure. It has also become super successful. That's why Twitter is not relevant for it. Okay. Because actually, sir, now you, I know you are generational. Right. You are the second generation. If I am not wrong. Can I get a stock exchange? I really wanted to go. Where is it? Let's see. But, due to time. So, come today. It is 11 o'clock. Come. There is time. Let's go to the stock exchange. Okay. Tea and toast. What do you eat? Tea and Malai toast. Okay. We will enjoy. It will be fun if you go. The flight is at 11 o'clock. Yes, 11 o'clock. So, sir, now you are the second generation. At that level, I mean, you reach at that level, where your connection, you are connecting with the elite people only. So, you know that that's why it doesn't matter to you who is there, who is not, or who has become very big. Actually, There are a lot of exposures. I go there and sometimes I say, OK, OK. Because I wasn't in their connection for a long time. I also had a small circle. So after that, I told them, OK, OK, I'm doing this. Really? I said, man, if you can't change yourself, change is the only constant. You can't move forward, sir. And you said a very good point, sir, that there are a lot of people who enjoy money, who are giving you the market. And he is a trader. Like, sir, I tell you, at night, like I said, it's become a habit to watch EFNIFTY. Positional strategy is working very good. It's going on at the moment. So after watching it, what will happen tomorrow? What will our strategies perform? Or at night, OK, we have to do something different. So always think about the markets. What can we change? So that obsession is there, which you said, it's in the second type of traders, that yes, we have to do this and constantly do it. Because as a trader, we can still grow. Yeah absolutely. So, sir, yes, now sir, let's come, OK, yeah, OK, OK, sir. Sir, this meditation, this is a pillar for me, OK, sir. And it is a very good pillar. Many people may not recommend it. They will say, this is Gyan, but meditation is the key. I tell you the reason for that, sir, I mean, I used to do a lot of meditation, but I couldn't be consistent. I tried a lot of big ones, like Isha Foundation, or Escon Foundation, or Shri Sri Ravi Shankarji. So I tried meditation for all of them, but I was constantly feeling somewhere, I was not able to complete it, or somewhere it was going in a different way. Then I introduced one of the meditations, by the Ray Dalio sir, he said, so he said a video, I would like to play that video in front of you. Will you play? Yes. I will give the link of this video, by the way, below this video, so that if you want to watch it, you can watch it later. No, I am not able to hear. OK. But definitely, I will give the link of this video below. Sure. Tell the meaning of this. Yes. So, sir, he has said only one thing, he has said that 80% of my life's success has come from meditation. Wow. And this is available, Ray Dalio sir, he is not small, the Bridgewater Associate, we know that, he is a billionaire. So I said, how can a person go and say 80% that he has earned money from meditation, I mean, I always think about business, how to earn money. I said, how can he say this? So his principle is a book, the principle of, so I saw that, I said, no man, something will happen, so I searched and he said, they do the Transcendental Meditation, people asked him, that too, sir, like you, I mean, a lot of people do it on YouTube, so he said, I do Transcendental Meditation, TM, I searched on Google, after searching on Google, I saw one, I did it there, I did it in Bombay, so I went to Parel and finished the meditation, then I started following it, so it was a lot of fun, I mean, we say that we don't sit with ourselves, so I sit with myself for half an hour, and in myself, thought process, most importantly, creativity increases, so this thing, I will recommend, sir, Even for an algo trader? Huh? Meditation is required, even for an algo trader? 100%, why not, sir? Why? Because discussion trader wants more peace, an algo trader is already in peace. Yes, sir, but there is peace, but creativity should come, creativity. Because sir, algo trading is not like that, you put rules, evolve into the market, sir, which regime changes, since I started, Bank Nifty's expiry was there, Nifty's expiry was there, lots changed, then Zero DTI came, then Everyday Zero DTI came, after that Midcap and everything, expiry got over, Nifty Sensex came, today Nifty Sensex got exchanged, so if I didn't evolve, then maybe, I wouldn't have been able to sit here with you, sir. So what are you making money in now? Huh? What is going on now? What is going on now? I didn't understand. What is going on in the market now? Like where is money being made? Sir, money is being made in the index now, but the proportion to index, you don't have to deploy a single strategy, like, till last year, as I said, I used to do only Zero DTI, okay, money was made, then money started going, then the time came, the big institute, Jane Street, okay, after the arrival of Jane Street, the premiums used to double, 100 for 200, so the premiums used to burst, after that, I saw that time too, then I said no, so while learning it, it came to this level, like in the coming presentation, now we are making money in this, let me show you, okay, time is the money, that's why we do the option selling, okay sir, so like what I did now, what we do now sir, currently we are doing this, what we do is, all DTI, Sorry, did I interrupt you in the middle? Why do I feel that I interrupted you? No right? No, no, no, I mean, I will recommend, you do the meditation, you will see the difference yourself, that how changes are coming in my lifestyle and life cycle, I am getting creative, and I am able to do a lot of new things, okay, and you watch that video, of Redolio sir, you will understand, how important it is, that's all I wanted to tell you, got it, okay, so, now as you said sir, what is going on, so sir, the slide in front of you, this is what is going on for me, means, all DTI, we do intraday, 79%, okay, in which major fund is deployed on 0 DTI, okay, 20% is positional selling, option selling, and 1% option buying, which I have just introduced, which I don't want to recommend now, but, now see sir, I will tell you one thing, 79% which is there, that is my 0 DTI strategies, okay, 0 DTI, 20% is positional, that runs all days, and the 1% option buying, that is 50% in intraday, and 50% in positional, so, 1% option buying, as I have put, so sir, I cannot have more than 1% loss, and I have set the position sizing in such a way, that it becomes uncorrelated from each other, okay, so sir, this formula is my cue, I will tell you, like this current month, is very volatile for the 0 DTI traders, it is very volatile, positional traders have earned a lot of money, last month, was a very smooth month for 0 DTI, but, positional traders have survived, the month before that, why did I get this cue sir, because I evolve in the process, I said that I did not make it and left it, I see, I track a lot, what is not happening, why it is not working, so this formula is working fluid, and where did I get this formula sir, I have an institutional friend, you can say, he is like, at the very highest post, so he took out some data, and told me that, Abhishek, you are dependent on 0 DTI, you only do 0 DTI, what will you do if it stops tomorrow, you should think something, so he took out the data, see, these are all profitable traders, what do they do, see, they do option buying, they do positional trading, they do 0 DTI, I said yes, this is true, you said, so, this thing he said, so then I said, till then I was not changing sir, I was constant, a man's self-confidence is there, no, I will make money in 0 DTI, alpha is there, it is not like that brother, if you do not evolve, then you will not be able to move forward, so basically, to make different market regimes adaptive, you are creating kind of a portfolio of strategies, that if this does not work, then it will work, if that does not work, then it will work, ultimately, you are interested in making money, exactly, you have not written that I will only do 0 DTI, exactly, it is a good diversification strategy, like an investor thinks that he has to put money in three sectors, that if one sector goes bad, then my money should not be spent, in his own way, but what is the logic of 79, 1 and 20, yes, very good question, he has come, let him see on the side, see sir, I am asking all the questions, you are saying that the answer is in the next slide, so I will be quiet once, no, because you have all the answers later, no sir, like here, because sir, you are absolutely right, why did I say 20% positional, you know, because sir, I have a loss of 79%, I can stop it in intraday, that brother, the fund that I have run of 80%, suppose I have a loss of 0.5% intraday, I will stop it, but 20% positional, I only have VAR in my hand, value at risk, and its drawdown is also increased, so I have to do its position sizing in such a way, that there is no difference in my entire portfolio, that's why we are doing the 20% of the positional, and the 1% option buying means, suppose sir, whatever 1% option I have bought, if it becomes 0, then my capital will not go above 1% anyway, I will explain it a little mathematically to you, that suppose someone has a capital of 1 crore, so you are saying, 79 lakh worth of margin option selling, exactly, ok, 1% means you can buy an option of 1 lakh, that much money can be spent, and 20% means, 20 lakh worth of options positional, perfect, so you typically spread the position, spread trading is a very relevant concept in the market, especially for the options trader, what happens in that is, you carry the position, like if you feel that the market is fast, then you can make a call option spread, you can make a put option credit spread, there are different ways, the advantage in that is, you know the house to be built, this much can be built, and you also know the payoff of coming, so you can manage the risk very calculatedly, if you talk about risk adjusted return, or how much can be spent and how much can come, if you believe in that thinking, then I think spread trading is very important, and since options trading has come to India, since monthly options have come, the serious people do spread trading more, just take the call, just take the put, or send it, This brings a different level of risk to the system, but spread trading is a far more calibrated risk that people can take in the market. Let's spread ahead, I will show you by opening an html file in front of you that how much difference it makes in terms of return and in terms of basket. If you just change the position sizing a little, or I have learned from this platform, that's why I am giving the strategy here. But I will honestly say that you do your own backtest, do your own research. Don't run behind this strategy, understand the thought process. If I am a trader, then what is my thought process, what have I learned? So the thought process is the most important factor. That I am also learning from someone and implementing it. But I have taken the thought process from them, I have not taken the strategy that it came, gave and left. It's not like that, like sir also said that he has openly shared what he has given. But how you can utilize it, in which way you can do it, it's all up to you. Very good. Thank you, sir. Give me some tea. Call for tea. Let's start the video recording. I am calling for tea, I didn't say anything special. You also drink tea. Order it. So sir, the allocation of the strategy. Okay. Like a single entry strategy. I got hungry seeing this. The one on the right side, like on the left side, it was more of a digital representation. On the right side, you didn't get the digital representation. You put the whole plate. So sir, this is the creativity of the team. Single entry strategy. Sir, how much will you eat, you will get bored somewhere. Okay, if you have multiple entry strategy, if you have more food to eat, then there will be satisfaction in eating. That's right. Okay sir. So he has given such a strategy allocation. There, I go to Oberoi Mall, there is a Rajdhani. Rajdhani. Rajdhani. Yes, he gives thali. Yes. Very yummy. Great. And in the summer, he also gives mango juice. Sir, I have brought something for you, that's why. You brought for me? Yes. So sweet of you. Thank you. I said, what can you take from Maharashtra, Alphonso for sir? Oh wow. Mangoes finished. Best best. So sir, now let's come to the strategy. Okay. What we will do is, we will make a strategy of 0DT, 1DT, 2DT, 3DT. With that strategy, we will make a positional strategy. We will do a combination of these two. We will manage it with position sizing. We will manage it with VAR. And its results will come up. Okay. As I said, okay, come to the point. Now this 9-15. Now this 9-15. Now this is important, I will say a very good thing. I don't know who all will tell me. Now this 9-50 timing. What do you think, sir? I mean, many people, viewers will see, traders will see. I never dreamt that 9-50 works. This is because of AI. Oh, you asked that? Yes. What we did to AI, we gave it a complete 1-minute data. Okay nice. We asked it, tell me which time you are going to give, but no problem, from where I have learned. You will get a lot of blessings. Sir, giving back to society, trust me. So, how did we find the 9-50 timing? So, we uploaded the files on the cloud. We asked it, brother, you tell me which time, which saddle, it gave a lot of data. Some time zones came out of it. We also dug down those time zones inside. So, we were able to find the exact time zone. So, we were able to find the exact time zone. So, we were able to find the exact time zone. So, we were able to find the exact time zone. So, we got the exact time, sir, think about it. So, what level has AI reached? And why I want to tell this thing, why I am taking more cue in the name of AI, the reason is, in the latest, a very big institute called Jane Street published a video. They said, we do trading on patterns, we do it on this, their AI models trade, sir. I mean AI models, they didn't even sit people, I mean their trading runs on AI models. So, I said, sir, I will give the link of this video below, watch the video, it is a very scary video. Yes, it is a scary video. Sir, the building we are sitting in, it is a little bigger than this, they have a data center. I said, brother, so, one thing to learn in AI, who is in front of us. So, if we want to beat these people, we can do risk management, psychology, and position sizing with this only. The rest is impossible. So, the video is over. I think this is the conclusion. You said a very good thing at the end. Thank you, sir. So, what we will do, the timing of 9.15, we will sell the closest premium of Rs. 60 on Sensex, we will put a stop loss of 50-50% and put a re-entry. And when will we run this? I have seen Monday, Tuesday, Wednesday, Thursday. Okay. This is the back-tested result. So, here we will see, this is intraday. So, the drawdown of this, how can it be 1.3% drawdown? Because it is the timing of AI, we have back-tested it. So, it may be an optimized time. But understand the thought process, the drawdown of this and its returns, we have back-tested it. And in this, I don't want to sell anything. What is this? This is a back-tested result, sir. What are you doing at 9.50? Okay, you have sold the call and put. I have put a stop loss of 50-50% and put a re-entry. And I have back-tested it. So, this is the result. This whole program, you have done it through Grodd or through AI. Our back-testing engine is also there. The tech team with me, I ask them to back-test it. Would you like to recommend any back-testing platform? There are many, sir. Tell me one or two names. StockMock. I started with StockMock. StockMock is a very good back-testing platform. Algotest is also a back-testing platform. After that, in the back-testing platform, Stockso? Or Bekinzo? Bekinzo is good. But in Bekinzo, nowadays, many things like Cascade are becoming famous. Bekinzo is always best. Bekinzo is also best. So, these are the three local platforms, sir. But you should know how to use it. And if you, sir, this is only done by TBS. If you have something else, then you can also code. So, we have come a little ahead of TBS. What is TBS? TBS, time-based titles. So, if you can't sell on TBS, you can do it. But after a scale, you have to diversify the strategies. Exactly. So, these are the three platforms. There is no commercial relationship. People are using it. You can also try it. If you like it, you can subscribe to them. Let me tell you one thing. The software they make, they make it with a lot of hard work. You should subscribe to them. Because the creator is making it with a lot of passion. Now we have a stockage. If you don't subscribe, then we will stop it. What will be the benefit? It will be a loss for me too. So, there was a stockmark. We also did face-to-face. Nidesh's. He is such a cute kid. The AlgoTest guys are so nice. Use it. Don't save money on software. Only the broker will give. It is not written. Only the broker will give everything. Put a habit of subscribing to independent software. If you want to become big. Wow sir. I liked the last word. You will have to spend money on back-testing. Because it will give you confidence. Otherwise, we can do it manually. It will give you confidence. You don't have to rely on it. I talk to them. The people you mentioned. I talk to a lot of people. The AlgoTest guys too. There is a difference in the price too. We go so deep. If our back-test and real data are not matching. I message them. Today's data has a problem. You will understand when you go deep. I should have had a sale of Rs. 600. You are showing Rs. 700 on it. There is a difference of Rs. 100. There may be a difference in the data. The data can vary. It is not profitable. Download the report. Go to the report. Check on the other platform too. This will give you confidence. This is the result of the back-test. I have given it. We have made a capital of Rs. 400,000. Because we have taken a buffer of Rs. 100,000. It takes Rs. 300,000. This is the result in front of you. What you are seeing on the screen. This is the result of this strategy. You can back-test. Different results can come in different platforms. That's all up to you. This is our data. This is the strategy. Let's implement it. The things I will show you. You will understand. April month, losing. Jan month, losing. Something must have happened in this month. Let's figure it out. What is it? Next. Let's come to the next strategy. That is price action based trading strategy. For the positional. We have practiced this positional strategy. This is also a strategy. Me and my team. We always believe in simplicity. Because if there is a strategy in the mind. Then we will not be able to follow the strategy even after back-testing. This strategy is so simple. This is a very good strategy. In which we will do. There is a range of 9.15 to 11.15. In the market. If there is a high break of that range. so we will sell put, if there is a low break then we will sell call its stop loss will be 0.5 on underline underline, means if I did above 22000 then 0.5 so if 100 rupees of underline changes then my stop loss will be hit ok sir and we will put re-entry at cost in this ok so this strategy is done sir ok we will come to its results and this strategy, it is a BTST kind of strategy in transitional, STBT sorry, STBT kind of strategy in which we will sell today and buy tomorrow ok so this is the STBT strategy so in this, whatever is the STBT strategy so sir, what we will do in this it is written here, let me show you the rules let me repeat it again we will mark high and low for 2 hours if there is a high break then we will sell put of in the money and if there is a low break then we will sell call of in the money we will put stop loss 0.5 on the underline and if there is a reversal then we will put a feature for re-entry re-entry at once only we will put a re-entry and next day we will take out 935 many people in this, I will tell you just try to take my thought process you do 935, 945, 10, 11, 12, it's all up to you but test it once test it, it's your thought process, take this thought process ok, now let's come to this result now we have put 4 lakhs on this but just look at the returns 46%, 26%, 44% but look at the drawdown the drawdown is big so how will I manage this through position sizing I will also tell you how now let's come here as we have seen here my April and Jan both are positive now if I have gone in this strategy combination my month will not be negative so you have to implement these things but it's not like you go and do it put both of them in one lot and do it in this, the key to position sizing is the power to see the drawdown of 10 lakhs can be with 10 lakhs capital but it won't be with 1 crore and 10 crores when the capital size is increased your drawdown should be less ok sir, next yup ok, let's come to the html file sir, we have made a trading analytics ok so we have taken two strategies ok we have backtested it in front of you ok what I have done in this this is positional this is intraday ok in this we have taken base capital 3 lakhs ok so this is effective capital 3 lakhs ok according to that it is showing 4 lakhs the reason for this is I have put it here like I told you net deployable capital is 12 lakhs it will show ahead 10 lakhs means we have said 10 lakhs let's verify value at risk I am going to give a portfolio of 10 lakhs that's why it is showing here in the html file 12 lakhs but if for example let me show you first let's see the result of this ok sir if I combine this strategy if I hit one lot of this strategy and implement one strategy then what is my result so sir see this is my result ok drawdown of 4.5 drawdown of 4.5 drawdown of 5 drawdown of 4.5 10 lakhs this basket size is 3 lakhs plus 3 lakhs 6 lakhs if I hedged this is capital of 4 lakhs I was showing 4 lakhs yes 4 lakhs because I will hedge value at risk ok so you can see drawdown of this ok this is its drawdown ok with that this is its returns ok now in this also you will see sub month green right but I have to optimize this more because sir my returns I can't take drawdown of 4.6 drawdown of 4.6 I don't want drawdown of 4.6 so what I will do because my positional strategy is quite aggressive ok so I will do one thing in front of 2 intraday we will make a 10 lakhs basket I will implement 3 intraday strategy and I will put positional in one so what will happen I will be able to do 0-80 and my positional basket will be on 20% as I said rule ok see sir drawdown and this works in reality now see your month red only one month red June and in this value at risk most important this is the reason why drawdown is less we have added value at risk if you don't add then maybe it can show 10-20% if it opens in the opposite direction then ok backtesting you don't believe 100% you discount it a little yes sir 100% how much you believe if it is 100 then how much you will discount it 20-25% now I will tell you my simple my rule as I said I will use word simplicity in backtesting result will show 50% I will divide it 50% and double drawdown wow as soon as then only my strategy will be so strong mentally that I will be able to implement sir now if we do it here so you are saying drawdown we doubled it yes and return is 50% 3% drawdown and where is return return here where is return not here here return means most probably return is 40% 4-0% 40% return is 1.5 but I will hold 20% return and 3% drawdown this is like ultra conservative ultra conservative if I want to earn more returns in my risk by adjusting position sizing I can do it's all up to you if you want to take 10 tk change it what you have to do for example I come here I have to do one thing I have to run both run do it I don't have any problem you have made this with Claude yes with Claude it becomes very easy very easily sir these many things become very easily so in this implementation I have made this for you for viewers because I wanted to show the whole platform but it is under development so see here sir if I want to do more it's all up to you returns will also increase ok ok so interesting interesting yes ok as we saw here ok so sir this principle less is more I maybe I explained strategies very easily and my focus is on philosophies because philosophies build your mindset sir and it's easy to implement this is a Pareto principle sir 80-20 you sir I saw I did trading actively after trading result result in 2 years is good in 2 years I made decent money out of it but in 5 years just survive that's why I say this principle that 20% time will come when you will boom but in terms of strategy also works now you will see this strategy returns ok and this strategy is too much means returns are not effective so 20% of the time your 20% which you will implement its effect will fall on 80% so 20 rule works everywhere everywhere sir ok we will see this whole video so 20% will be useful actually true true true so sir so sir George Soros sir who knows Bank of England what he did so he has a very good thing its not whether you are right or wrong its how much you survive in the game wow for how long you survive like sir you are the second generation of trader so you know sir for how long you survive money is always secondary surely and you have a life and you are not alone in your business yes so that's why you are a good trader thank you sir thank you sir sir thank you sir thank you sir thank you sir sir thank you sir sir you are a good trader thank you you are a good trader thank you sir thank you sir thank you sir thank you sir my name is your name is sir my name is your name is your name is your name is your name is your name is your name is your my name is sir naked your name is your name is your name is your name is your name is your name is your name is your name is your name is your name is your name is your name is your name is your name is your name is name is your I'll tell you the end of the conversation. People do implementation, they think the algorithm is everything. It's a printing machine. Yes, it's a printing machine. But sir, I saw on 18th April, a guy is doing gym. He came on 18th April, he had 1 crore in his account. There was no wire, 25 lakhs, 30 lakhs. Sir, I learn these things by watching. Today I will learn something from you too. That sir, I learned this thing, I have to implement this. I will ask you, sir, what can I do, how can I grow? So this is very important, sir. Do you think I have implemented it? Many people, for the flex, many people may not like this word, but people flex that yes, my machine is working for me, I am enjoying, I am sitting on the beach, sir, how is it possible? If you have, yes, you are on a level, you have a team, you have all your teammates, and you are managing, so that is different. But if it is not there, then you will have to sit and observe. You will have to give time to the market, otherwise the market will not give you, sir. We have made everyone into an organization. We have traded for the first 10 years ourselves. Then we came to the stage that we are able to do that. So I hope next couple of years, you will also build a large organization. Thank you, sir. Thank you, I have best wishes to you, Abhishek. Thank you for your lovely knowledge. Thank you, sir, grateful. Thank you, thank you, thank you. Okay, friends, this was Abhishek ji from Maharashtra. And he said a very good thing that no language barrier, no race barrier, no community barrier. Share Bazaar gives everyone opportunity equivalent. Now you will have to develop beliefs in yourself. And by the way, you have stopped till the end, so you already have belief in yourself. That's why you have stopped till the end, so praise yourself. And comment that are you liking this focus of mine, of only talking to people who are teaching us a systematic way of trading. If you think you are liking it, just mention in the comment. Yes, I am liking it. And if you want to connect with Abhishek, then we will give his Twitter handle below the video. Don't keep commercial relationship. Learning relationship. Definitely move forward. Okay, thank you. Take care of yourself. Jai Hind. Bye. Bye. Investment insecurities market are subject to market risks. Read all the related documents carefully before investing.