Options trading can be tricky, especially if you don’t use the right trading platform. Algo trading software can make it simpler and quicker to trade options.
Here’s a guide on how you can start options trading with ease using PHI 1.
Access comprehensive charts:
Using PHI 1 for options trading will give you uninhibited access to detailed charts and data sets. You have the choice of displaying any chart, symbol, price-related data across various time frequencies. This means minute-to-minute trading actions and movement will be available at your fingertips.
For displaying charts, you need to click on the graph symbol on the left side of PHI 1. All NSE instruments are available here. You can choose any scrip you want.
For Options, you would need to click the F&O selector in the header and choose your desired scrip, expiry, strike price, and whether it is a call or a put option. Once that is done, click generate.
With PHI 1, you can get access to data across various time periods. Whether it is daily swings or market ticks by the second, you can generate data for any time you want.
There is no restriction on the number of indicators you can apply here. You can use multiple indicators at a time.
Another useful feature that needs to be highlighted is the ease of transactions.
If you have connected your broker to your account, you can place a buy or sell order directly from PHI 1’s interface.
There are two ways to select the option instrument on PHI 1:
A. One is by directly inputting the precise strike and expiration date, or
B. You can choose from the dynamic monthly and weekly options available. You can choose any strike price like at the money (ATM), and the software generates various options that get updated daily.
In case you want to come back to the charts in the future, you can do so by saving the chart. Just click on ‘Save’ in the header with the name you want.
Your chart template is now saved and you can continue your technical analysis whenever you want.
Built-in strategy templates
For viewing the various strategy templates available at hand, click on the menu options on the right-hand side, and select strategy.
Under the strategy, you have two options to choose from. You can either start with the form mode or code mode.
With form mode, you have basic strategy templates available with various indicators so you can algorithmic trading without coding.
You just need to select the strategy template that you require (SMA, EMA, etc). You get a basic buy and sell condition on which you can add a stop loss and take profit.
If you have your own entry and exit rules, you can enter them using either the form mode or code mode. Also, if you need any coding help, just contact PHI 1 support and they will help you out.
Once your strategy is ready, all you need to do now is click on ‘Run and Save’.
When the run completes at the day frequency, you get the default run for the entire year.
There are other trading performance metrics that you get access to at this stage such as your overall returns, long-short trades, profitable trades, loss-making ones, each entry, each exit, and overall return.
It’s super easy to get started with the form mode. You can add as many indicators as you want to experiment with in order to get the results you require.
Even with code mode, you have access to 10 templates, to begin with.
Let us understand code mode with an example.
When we choose the first strategy template – Bollinger, it gives you an initial indication for you to calculate and take buy and sell orders based on where your current price is in terms of the Bollinger band with default parameters.
You can change the parameters and buy/ sell orders based on the metrics you want to analyze.
If your current strategy isn’t working, and you want to include an additional trading indicator of your own, you can introduce the code under initialize code here.
In the screengrab below, the code for MACD is added in the box.
Next, you will need to add the set of conditions under step code.
The first condition is that, from the top, MACD should be < zero.
And on the opposite side, before the uptrend, we want the MACD to be >zero.
This added indicator helps filter out unfavorable trades and allows you to focus on trades that may work in your direction.
The code mode is not limited to only the 10 indicators visible in the drop box.
You can access nearly 119 indicators available in the learn section on the left-hand side to add to your strategy.
You also have the option of using multiple indicators at one go, to analyze market trends, and review the metrics you need.
You can experiment with trading strategies, time frequencies, add stop-loss conditions, and different instruments.
When building a trading strategy for options, the process is exactly the same.
You just need to choose your desired option and strike price and run the strategy.
You can choose different time frames from hourly to monthly, visually inspect all trades to see how the premiums have changed over time, etc.
With PHI 1, options trading gets bigger and better.
You can not only try out tested and experimental strategies but also see payoffs, backtest, and simulate trades.
Finally, you can deploy your trades with the broker of your choice using the multi-broker integration.
In a nutshell, PHI 1 offers total freedom for the trader to exploit market opportunities while trading options by managing mundane tasks that take away time and effort.
Watch our webinar on ‘Getting Started Options Trading with PHI 1’ here.
Stay tuned for more.