12 Mar ’24 — BankNifty Algo Trades almost killed me today.
BankNifty Analysis - Stance Neutral ➡️
The 10.43 candle was more profound on BankNifty, we had a drop of 656pts ~ 1.38% in that single candle. We had a positive swing of 612pts ~ 1.3% between 09.27 to 09.59 and then a negative reaction of 931pts ~ 1.95% between 09.59 to 10.47. If these 2 swings did not take out your stop loss - then I don't know what will. Since we run algo trades, the entire positions went into a tailspin showing a huge MTM loss. Miraculously, the system recovered and ended the day with a reduced loss. If this same move happened on a Wednesday or Thursday, then the losses would have been 10x of what we had today.
4mts chart
On the higher time frame, the stance continues to be neutral as BN was unable to take out the 47465 resistance today. The 10.18 candle showed some bearish intent, but it did not get any follow-through action. The current market texture is weak hands holding CE short positions. So if we break the resistance tomorrow either by a gap-up or via 1hr trading, then the short covering will result in further momentum. This market structure is really pissing off some serious traders too, mostly because overnight positions are not bringing the kind of benefit it should. The premiums for which they are sold do not cover the risks taken.
63mts chart
–
Algo Trading
Our algo trades ended today with a loss of 15896. The positions went into deep RED during the 10.43 candle, but with time the positions started recovering.
The 10.43 candle was more profound on BankNifty, we had a drop of 656pts ~ 1.38% in that single candle. We had a positive swing of 612pts ~ 1.3% between 09.27 to 09.59 and then a negative reaction of 931pts ~ 1.95% between 09.59 to 10.47. If these 2 swings did not take out your stop loss - then I don't know what will. Since we run algo trades, the entire positions went into a tailspin showing a huge MTM loss. Miraculously, the system recovered and ended the day with a reduced loss. If this same move happened on a Wednesday or Thursday, then the losses would have been 10x of what we had today.
4mts chart
On the higher time frame, the stance continues to be neutral as BN was unable to take out the 47465 resistance today. The 10.18 candle showed some bearish intent, but it did not get any follow-through action. The current market texture is weak hands holding CE short positions. So if we break the resistance tomorrow either by a gap-up or via 1hr trading, then the short covering will result in further momentum. This market structure is really pissing off some serious traders too, mostly because overnight positions are not bringing the kind of benefit it should. The premiums for which they are sold do not cover the risks taken.
63mts chart
–
Algo Trading
Our algo trades ended today with a loss of 15896. The positions went into deep RED during the 10.43 candle, but with time the positions started recovering.
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