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cod3

The document outlines a trading strategy involving the selection of call and put option strikes based on the current candle close and previous day's premium data. It includes functions for calculating the simple moving average (SMA) of highs, checking for breakouts, and creating trade details such as stop loss and target prices. The strategy monitors trade status and exits based on current premium data against predefined stop loss and target conditions.

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riskreward102
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0% found this document useful (0 votes)
3 views9 pages

cod3

The document outlines a trading strategy involving the selection of call and put option strikes based on the current candle close and previous day's premium data. It includes functions for calculating the simple moving average (SMA) of highs, checking for breakouts, and creating trade details such as stop loss and target prices. The strategy monitors trade status and exits based on current premium data against predefined stop loss and target conditions.

Uploaded by

riskreward102
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

# =========================================

# 1. STRIKE SELECTION

# =========================================

def select_strikes(candle_close):

strike_gap = 50

ce_strike = candle_close + (3 * strike_gap)

pe_strike = candle_close - (3 * strike_gap)

return ce_strike, pe_strike

# =========================================

# 2. SMA3 HIGH CALCULATION

# =========================================

def calculate_sma3_high(previous_day_candles):

high_values = []

for candle in previous_day_candles:

high_values.append(candle["high"])

sma3_high = sum(high_values) / len(high_values)

return sma3_high
# =========================================

# 3. BREAKOUT CHECK

# =========================================

def check_breakout(current_candle, sma3_high):

if (

current_candle["open"] > sma3_high

and

current_candle["close"] > sma3_high

):

return True

return False

# =========================================

# 4. TRADE DETAILS

# =========================================

def create_trade(entry_price):

stop_loss = entry_price - 7

target = entry_price + (entry_price * 1 / 2)

return stop_loss, target


# =========================================

# 5. TODAY'S 5-MINUTE CANDLE CLOSE

# =========================================

candle_close = 25200

# =========================================

# 6. SELECT 3 OTM STRIKES

# =========================================

ce_strike, pe_strike = select_strikes(candle_close)

print("CE Strike:", ce_strike)

print("PE Strike:", pe_strike)

# =========================================

# 7. PREVIOUS DAY SELECTED CE PREMIUM DATA

# =========================================

ce_previous_day = [

{"open": 170, "high": 180, "low": 165, "close": 175},

{"open": 190, "high": 200, "low": 185, "close": 195},

{"open": 210, "high": 220, "low": 205, "close": 215}

]
# =========================================

# 8. PREVIOUS DAY SELECTED PE PREMIUM DATA

# =========================================

pe_previous_day = [

{"open": 150, "high": 160, "low": 145, "close": 155},

{"open": 160, "high": 170, "low": 155, "close": 165},

{"open": 170, "high": 180, "low": 165, "close": 175}

# =========================================

# 9. CALCULATE SMA3 HIGH

# =========================================

ce_sma3_high = calculate_sma3_high(ce_previous_day)

pe_sma3_high = calculate_sma3_high(pe_previous_day)

print("CE SMA3 High:", ce_sma3_high)

print("PE SMA3 High:", pe_sma3_high)

# =========================================

# 10. CURRENT PREMIUM CANDLE

# =========================================

ce_current_candle = {
"open": 230,

"high": 240,

"low": 225,

"close": 235

pe_current_candle = {

"open": 190,

"high": 200,

"low": 185,

"close": 195

# =========================================

# 11. TRADE STATUS

# =========================================

ce_trade_done = False

pe_trade_done = False

ce_trade_active = False

pe_trade_active = False
# =========================================

# 12. CE ENTRY

# =========================================

ce_breakout = check_breakout(

ce_current_candle,

ce_sma3_high

if ce_breakout and ce_trade_done == False:

ce_entry = ce_current_candle["close"]

ce_stop_loss, ce_target = create_trade(ce_entry)

ce_trade_done = True

ce_trade_active = True

print("BUY CE")

print("CE Entry:", ce_entry)

print("CE Stop Loss:", ce_stop_loss)

print("CE Target:", ce_target)

# =========================================

# 13. PE ENTRY

# =========================================
pe_breakout = check_breakout(

pe_current_candle,

pe_sma3_high

if pe_breakout and pe_trade_done == False:

pe_entry = pe_current_candle["close"]

pe_stop_loss, pe_target = create_trade(pe_entry)

pe_trade_done = True

pe_trade_active = True

print("BUY PE")

print("PE Entry:", pe_entry)

print("PE Stop Loss:", pe_stop_loss)

print("PE Target:", pe_target)

# =========================================

# 14. EXIT MONITORING

# =========================================

while ce_trade_active or pe_trade_active:


# Practice live premium data

ce_current_premium = 250

pe_current_premium = 210

# -------------------------

# CE EXIT

# -------------------------

if ce_trade_active:

if ce_current_premium <= ce_stop_loss:

print("CE STOP LOSS HIT")

ce_trade_active = False

elif ce_current_premium >= ce_target:

print("CE TARGET HIT")

ce_trade_active = False

# -------------------------

# PE EXIT

# -------------------------
if pe_trade_active:

if pe_current_premium <= pe_stop_loss:

print("PE STOP LOSS HIT")

pe_trade_active = False

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