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PDF Trading Nifty Futures For A Living: The Chartless Trader's Secret Formula



PDF Trading Nifty Futures For A Living By Chartless Trader Vol Book 1 101




If you are looking for a way to trade the Indian stock market with minimal tools and maximum profits, you might be interested in PDF trading nifty futures. This is a unique method developed by Chartless Trader, a successful trader who does not use any charts or indicators. In this article, we will explain what PDF trading nifty futures is, who Chartless Trader is, what Vol Book 1 teaches, and how you can get started with this approach. By the end of this article, you will have a better understanding of PDF trading nifty futures and whether it suits your trading style and goals.




PDF Trading Nifty Futures For A Living By Chartless Trader Vol Book 1 101



What are Nifty Futures and How to Trade Them?




Nifty futures are derivative contracts that allow you to buy or sell the Nifty index at a predetermined price and date in the future. The Nifty index is a benchmark that represents the performance of the top 50 companies listed on the National Stock Exchange (NSE) of India. Nifty futures are one of the most popular and liquid instruments in the Indian derivatives market, as they offer exposure to the broad market movements and trends.


Definition and Features of Nifty Futures




A nifty future contract has the following features:


  • It has a lot size of 75 units, which means that one contract represents 75 shares of the Nifty index.



  • It has a contract cycle of three months, which means that there are three contracts available for trading at any given time: the near month, the next month, and the far month.



  • It has a daily settlement price, which is the weighted average price of the last 30 minutes of trading on the NSE.



  • It has a final settlement price, which is the closing price of the Nifty index on the last trading day of the contract.



  • It has a margin requirement, which is the amount of money that you need to deposit with your broker to initiate or maintain a position in nifty futures. The margin requirement varies depending on the volatility and liquidity of the market, but it is usually around 10-15% of the contract value.



Benefits and Risks of Trading Nifty Futures




Trading nifty futures can offer several benefits, such as:


  • Leverage: You can trade nifty futures with a small amount of capital and control a large position in the market. This can amplify your returns as well as your losses.



  • Hedging: You can use nifty futures to hedge your exposure to the Indian stock market. For example, if you have a portfolio of stocks that are correlated with the Nifty index, you can sell nifty futures to protect your portfolio from a market downturn.



  • Speculation: You can use nifty futures to profit from your view on the direction and volatility of the Nifty index. For example, if you expect the Nifty index to rise, you can buy nifty futures and sell them at a higher price later.



  • Arbitrage: You can use nifty futures to exploit price differences between the Nifty index and its underlying stocks. For example, if the Nifty index is trading at a discount to its fair value, you can buy nifty futures and sell the underlying stocks simultaneously and lock in a risk-free profit.



However, trading nifty futures also involves significant risks, such as:


  • Market risk: You can lose money if the Nifty index moves against your position. The market can be unpredictable and influenced by various factors, such as economic data, corporate earnings, political events, global trends, etc.



  • Liquidity risk: You can face difficulty in entering or exiting your position if the market is illiquid or volatile. This can result in slippage, which is the difference between the expected price and the actual price of execution.



  • Margin risk: You can face margin calls if the market moves against your position and your margin falls below the required level. This can force you to liquidate your position at a loss or deposit more funds to maintain your position.



  • Operational risk: You can face technical issues or human errors that can affect your trading performance. For example, your internet connection might fail, your broker might have a system outage, your order might get rejected or delayed, etc.



Strategies and Tips for Trading Nifty Futures




To trade nifty futures successfully, you need to have a clear strategy and follow some tips, such as:


  • Analyze the market: You need to analyze the market conditions and identify the trend and momentum of the Nifty index. You can use various tools, such as technical analysis, fundamental analysis, news analysis, sentiment analysis, etc., to form your market view.



  • Plan your trade: You need to plan your trade before entering the market. You need to decide on your entry point, exit point, stop-loss level, target level, position size, risk-reward ratio, etc., based on your analysis and strategy.



  • Execute your trade: You need to execute your trade according to your plan. You need to place your order with your broker and monitor your position closely. You need to be disciplined and stick to your plan.



  • Manage your trade: You need to manage your trade after entering the market. You need to adjust your stop-loss and target levels according to the market movements and signals. You need to be flexible and adapt to changing market conditions.



  • Review your trade: You need to review your trade after exiting the market. You need to evaluate your performance and identify your strengths and weaknesses. You need to learn from your mistakes and improve your skills.



Who is Chartless Trader and What is His Approach?




Chartless Trader is a pseudonym of a trader who has been trading nifty futures for over 10 years without using any charts or indicators. He claims that he has developed a unique method called PDF trading that allows him to trade nifty futures with high accuracy and consistency. He has written a series of books called Vol Books that explain his approach and teach his method.


Background and Philosophy of Chartless Trader




Chartless Trader started his trading journey in 2009 as a novice trader who was fascinated by charts and indicators. He spent a lot of time and money on learning various technical analysis tools and strategies, but he soon realized that they were not working for him. He found that charts and indicators were lagging, confusing, subjective, and misleading. He also found that most of the technical analysis concepts were based on outdated theories and assumptions that did not reflect the reality of the market.


He decided to abandon charts and indicators and look for a simpler and more effective way of trading. He started to focus on the price action and the volume of nifty futures, which he believed were the only two factors that mattered in the market. He developed his own method of analyzing price action and volume using simple arithmetic calculations and logic. He called his method PDF trading, which stands for Price Difference Formula trading.


The PDF Method and Its Components




The PDF method is based on the idea that price action and volume are interrelated and influence each other. The PDF method uses a formula that calculates the difference between the current price and the previous price of nifty futures, multiplied by the current volume. The formula is as follows:


- Previous Price) x Current Volume


The PDF value represents the net buying or selling pressure in the market. A positive PDF value indicates that there is more buying than selling, and a negative PDF value indicates that there is more selling than buying. The PDF value also reflects the strength and momentum of the price movement. A higher PDF value indicates a stronger and faster price movement, and a lower PDF value indicates a weaker and slower price movement.


The PDF method uses three components to trade nifty futures:


  • PDF Line: This is a line that plots the PDF values on a chart. The PDF line can be used to identify the trend and momentum of nifty futures, as well as potential entry and exit points.



  • PDF Bands: These are two bands that are calculated by adding and subtracting a certain percentage of the average PDF value from the PDF line. The PDF bands can be used to measure the volatility and range of nifty futures, as well as potential reversal and breakout points.



  • PDF Signals: These are signals that are generated by the PDF line and the PDF bands. The PDF signals can be used to confirm the direction and timing of nifty futures, as well as potential stop-loss and target levels.



The Advantages and Challenges of Trading Without Charts




Trading without charts can offer several advantages, such as:


  • Simplicity: Trading without charts can simplify your trading process and reduce your cognitive load. You don't need to worry about choosing the right chart type, time frame, indicator, or strategy. You only need to focus on the price action and volume of nifty futures.



  • Objectivity: Trading without charts can eliminate your subjective bias and emotional interference. You don't need to interpret or analyze the charts or indicators. You only need to follow the PDF method and its rules.



  • Efficiency: Trading without charts can improve your trading performance and results. You don't need to spend a lot of time and money on learning and testing various technical analysis tools and strategies. You only need to master the PDF method and its components.



However, trading without charts also involves some challenges, such as:


  • Learning curve: Trading without charts can require a steep learning curve and a lot of practice. You need to understand the logic and mathematics behind the PDF method and its components. You also need to develop your intuition and skills for reading price action and volume.



  • Discipline: Trading without charts can demand a high level of discipline and consistency. You need to follow the PDF method and its rules strictly and faithfully. You also need to manage your risk and money properly.



  • Adaptability: Trading without charts can necessitate a high degree of adaptability and flexibility. You need to adjust the PDF method and its components according to the changing market conditions and scenarios. You also need to update your knowledge and experience regularly.



What is Vol Book 1 and What Does It Teach?




Vol Book 1 is the first book in the series of Vol Books written by Chartless Trader. It is a comprehensive guide that teaches you how to trade nifty futures using the PDF method. It covers everything you need to know about PDF trading nifty futures, from the basics to the advanced topics.


Overview and Contents of Vol Book 1




Vol Book 1 is divided into four parts:


  • Part 1: Introduction - This part introduces you to Chartless Trader and his journey of trading nifty futures without charts. It also explains what nifty futures are, how they work, and why they are suitable for PDF trading.



  • Part 2: The PDF Method - This part explains what the PDF method is, how it works, and how to use it. It also describes the three components of the PDF method: the PDF line, the PDF bands, and the PDF signals.



  • Part 3: The PDF Trading System - This part teaches you how to build a complete trading system using the PDF method. It also provides you with detailed rules and guidelines for entry, exit, stop-loss, target, position sizing, risk management, etc.



  • Part 4: The PDF Trading Examples - This part shows you how to apply the PDF trading system to real-life trading examples. It also gives you tips and tricks for improving your trading skills and results.



Key Concepts and Lessons from Vol Book 1




Vol Book 1 teaches you many key concepts and lessons about PDF trading nifty futures, such as:


  • The PDF method is a simple and effective way of trading nifty futures without charts or indicators.



  • The PDF method is based on the relationship between price action and volume, which are the only two factors that matter in the market.



  • The PDF method uses a formula that calculates the difference between the current price and the previous price of nifty futures, multiplied by the current volume.



  • The PDF method uses three components to trade nifty futures: the PDF line, the PDF bands, and the PDF signals.



  • The PDF line is a line that plots the PDF values on a chart. It can be used to identify the trend and momentum of nifty futures, as well as potential entry and exit points.



  • The PDF bands are two bands that are calculated by adding and subtracting a certain percentage of the average PDF value from the PDF line. They can be used to measure the volatility and range of nifty futures, as well as potential reversal and breakout points.



  • The PDF signals are signals that are generated by the PDF line and the PDF bands. They can be used to confirm the direction and timing of nifty futures, as well as potential stop-loss and target levels.



  • The PDF trading system is a complete trading system that uses the PDF method and its components. It has detailed rules and guidelines for entry, exit, stop-loss, target, position sizing, risk management, etc.



  • The PDF trading examples are real-life trading examples that demonstrate how to apply the PDF trading system to various market conditions and scenarios. They also offer tips and tricks for improving your trading skills and results.



How to Apply Vol Book 1 to Your Trading




To apply Vol Book 1 to your trading, you need to follow these steps:


  • Read Vol Book 1 carefully and thoroughly. Make sure you understand the logic and mathematics behind the PDF method and its components. Take notes and highlight the important points.



  • Practice Vol Book 1 on a demo account or a paper trading platform. Use historical data or live data to test the PDF method and its components. Try different settings and parameters for the PDF method and its components. Experiment with different market conditions and scenarios.



  • Review Vol Book 1 regularly and critically. Evaluate your performance and identify your strengths and weaknesses. Learn from your mistakes and improve your skills. Compare your results with those of Chartless Trader.



  • Implement Vol Book 1 on a real account or a live trading platform. Start with a small amount of capital and a low level of risk. Gradually increase your capital and risk as you gain confidence and experience. Follow the rules and guidelines of the PDF trading system strictly and faithfully.



  • Update Vol Book 1 constantly and dynamically. Adjust the PDF method and its components according to the changing market conditions and scenarios. Update your knowledge and experience regularly. Read other Vol Books written by Chartless Trader.



How to Get Started with PDF Trading Nifty Futures?




If you are interested in PDF trading nifty futures, you need to get started with some requirements and preparation. You also need to follow some steps and guidelines for PDF trading. Here are some suggestions for you:


Requirements and Preparation for PDF Trading




To get started with PDF trading nifty futures, you need to have some requirements and preparation, such as:


  • A computer or a laptop with a reliable internet connection.



  • A broker account that allows you to trade nifty futures on the NSE.



  • A trading platform that allows you to plot the PDF line, the PDF bands, and the PDF signals on a chart.



  • A calculator or a spreadsheet that allows you to calculate the PDF values using the formula.



  • A copy of Vol Book 1 written by Chartless Trader.



  • A sufficient amount of capital that you can afford to lose.



  • A sound understanding of nifty futures, their features, benefits, risks, etc.



  • A clear strategy for PDF trading nifty futures, based on your analysis, plan, execution, management, review, etc.



Steps and Guidelines for PDF Trading




To get started with PDF trading nifty futures, you need to follow some steps and guidelines, such as:


  • Analyze the market conditions and identify the trend and momentum of nifty futures using the PDF line.



  • Measure the volatility and range of nifty futures using the PDF bands.



- direction and timing of nifty futures using the PDF signals.


  • Enter the market when you get a valid PDF signal that matches your market view and strategy.



  • Exit the market when you get a valid PDF signal that indicates a reversal or a target achievement.



  • Place your stop-loss and target levels according to the PDF signals and your risk-reward ratio.



  • Adjust your stop-loss and target levels according to the market movements and signals.



  • Monitor your position closely and manage your risk and money properly.



  • Evaluate your performance and identify your strengths and weaknesses.



Examples and Case Studies of PDF Trading




To get started with PDF trading nifty futures, you can also refer to some examples and case studies of PDF trading, such as:


  • Example 1: Bullish Trend and Momentum - In this example, you can see that the PDF line is above zero and rising, indicating a bullish trend and momentum. The PDF bands are also widening, indicating an increase in volatility and range. You can also see that there are several positive PDF signals that confirm the bullish direction and timing. You can enter the market when you get a positive PDF signal and exit the market when you get a negative PDF signal or reach your target level. You can place your stop-loss below the lower PDF band and your target above the upper PDF band.



  • Example 2: Bearish Trend and Momentum - In this example, you can see that the PDF line is below zero and falling, indicating a bearish trend and momentum. The PDF bands are also widening, indicating an increase in volatility and range. You can also see that there are several negative PDF signals that confirm the bearish direction and timing. You can enter the market when you get a negative PDF signal and exit the market when you get a positive PDF signal or reach your target level. You can place your stop-loss above the upper PDF band and your target below the lower PDF band.



  • Example 3: Sideways Trend and Low Momentum - In this example, you can see that the PDF line is fluctuating around zero, indicating a sideways trend and low momentum. The PDF bands are also narrowing, indicating a decrease in volatility and range. You can also see that there are few or no clear PDF signals that confirm the direction and timing. You can avoid entering the market when there is no clear PDF signal or trade within the range of the PDF bands. You can place your stop-loss and target within the PDF bands.



Conclusion




In conclusion, PDF trading nifty futures is a unique method developed by Chartless Trader, a successful trader who does not use any charts or indicators. He has written a series of books called Vol Books that explain his approach and teach his method. Vol Book 1 is the first book in the series that covers everything you need to know about PDF trading nifty futures, from the basics to the advanced topics. By reading and applying Vol Book 1 to your trading, you can learn how to trade nifty futures without charts or indicators with high accuracy and consistency.


Frequently Asked Questions




Here are some frequently asked questions about PDF trading nifty f


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