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Published by
Bandaru Nageswara Rao,
Plot No.19, SLN Colony
BMR Enclave, Nagaram, Keesara Mandalam
Ranga Reddy, Hyderabad,500 083, AP, India

Trade crude to make 3 times profit in a day


in MCX India
Copy right 14th February,2016 Edition-3 by Bandaru
Nagesswara Rao

Copy right November,2015 Edition-2 by Bandaru Nagesswara


Rao
Copyright November,2015, 1st Edition by Bandaru Nagesswara Rao

No part of this publication may be reproduced or distributed in any form


or by any means, Electronic, mechanical, photocopying, recording, or
otherwise or stored in a database or retrieval system without the prior
written permission of the publisher. The programme listings (if any) may
be entered, stored and executed in a computer system, but they may not be
reproduced for publication.

Information contained in this work has been obtained by its author


believed to be reliable. However the author does not guarantee the
accuracy or completeness of any information published herein and the
author shall not be responsible for any errors, omissions, or damages
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arising out of use of this information. The work is published with the
understanding that the author is supplying information but is not
attempting to render professional service. If such services are required the
assistance of appropriate professional should be sought.

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Dedicated
to
my mother Manikyamba
and
my sister Lakshmi

Preface to 3rd Edition


In this 3 ndEdition a new model-volume model is added. In this model volume and price
indicators are used for day trading for making attractive profits. The model can be
extended to carry forward trading also. But there is a risk factor of overnight global
news and variation in rupee value In the absence any violent news the price of
equity/commodity will follow the fundamentals only. In day trading we are assuming

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fundamentals constant and we are utilizing technical reasons to make profit.

The following chapters are added.

Chapter No-3 Principle and process of Volume Model

Chapter-4 Crude oil mini-Illustration of process and profit for Volume Model

The profit and reliability are higher for the volume model. But it involves some
calculation for each candle. You can use Automatic/Semi-automatic Algo Trading
software.

.
Bandaru Nagesswara Rao
14th Febuary.2016
Hyderabad

Preface to 2nd Edition

The name of the book is changed to 3 times to avoid disappointment of


readers.
B.Nageswara
Rao
November,2015
Hyderabad
India

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Preface to 1st Edition
This book is about a simple visual model for trading in crudeoilmini in
MCX India. The model can be used for day trading and carry forward
trading for for stocks, futures, options, all commodities in any exchange in
the world.

The model is based on Dow principle.


There are 2 chapters in the book
1.Principle of the model
2.Illustration of the profit

Bandaru Nagesswara Rao


Hyderabad
Inda
Nopvember,2015

Chapter-1
Principle of the Model
Use 1minute candle chart.(candles of more duration also can be used
(2m,3m,4m,5m,1d etc.,but ROI will be less,volume targets to be fixed)
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1.Buy conditions
Current candle is green/blue.
Current candle low is greater than previous candle low
2.Sell conditions
Current candle is red
Current candle high is less than previous candle high
3.Exit conditions
a.Follow price with SL order to exit at maximum profit.
b,When opposite transaction is selected, exit at small loss/profit and switch
over.
3. Volume of current candle is greater than 100 (Volume targets to be fixed
for each asset)
4.Use same principles for all stocks, futures, options, all commodities
5. Have trading account with one of the least brokerage firms like Zerodha,
Bangalore).You can use cover order offered by Zerodha. The margin for
one lot of crude oil mini will be in the range of INR 250-350.
5.Can be used for carry forward trading also-but ROI is very much
less. Sometimes there is risk due to overnight global news.
Thefollowing two charts are given in the next pages to explain the
principle.
1. Crudeoilmini chart of 2/11/2015 to show the principle for intraday
trading
2. Crudeoilmini chart of July-October,2015 to show for CARRY
FORWARD TRADING.

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Chapter-2
Illustration of profits
The illustration of profit is done with 1m candle chart of crudeoilmini on
02/11/2015 in the excel sheets in the following pages
Margin is Rs.419 for cover order with Zerodha, Bangalore. approximated to
Rs.400.
The sample chart is given in the previous slide
The chart data open, high, low, close,volume is downloaded from zerodha Pi
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software
buy,sell is indicated for each candle
If l2-l1 is +ve and close-open is +ve BUY.
If h2-h1 and close-open are ve sell
Profit is re-invested in more lots in the day
The data of each candle is given in the excel sheet
Total profit for the day = Rs.30.72 Lakhs
How money times = 30,72,000/400 = 7681 times
Tax and brokerage not considered because profit is huge and to save my time
Maximum profit is booked by following the price with sl price.
Crudeoilmini is 10 barrels so multiply profit with 10 times

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Chapter-3
Principle and process of the Volume Model

Principle: The price of any scrip/commodity will change significantly with volume
rise/drop
If the price rises with rise in volume it indicates more buyers.
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If the price falls with reduction in volume it it indicates reduction sellers.
If the price falls with rise in volume it indicates more sellers
If the price falls with reduction in volume it it indicates reduction buyers

If the changes by 0.1% from open price at the end of 5 minute candle with significant
volume rise/drop entry can be done in the direction of change.

Use 5m candle chart. Download the excel table of chart of 28/01/2016 fortrading
on29/01/2016.uUse tableof 29/01/16 for trading on 01/02/2016 to calculate Average
Volume per candle.
Calculate the average volume per candle.AV
Target VolumeTV = 0.8AV

Coditions for Volume rise

1. Current candle volume is higher by 10% from previous candle.


2. 2.CCV is greater than TV
3. CCV is LESS than 4TV
4. Previous candle volume PCV>0.5TV
Conditions for volume drop
1.CCV is less than 0.9*PCV
2.CCV is greater than 0.5TV
3.CCVis greater than 0.5*PCV
4.PCV is less than 4TV

Calculate AVand TV at 12-00 noon to know latest AV for that day, Volumes may change
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from previous day. Use latest TV for trading from 12-00noon.

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Chapter-4

Crude oil mini-Illustration of process and


PROFIT for Volume Model
Input parameters and assumptions
1.chart of 2minutes is taken
2. Magin for cover order =Rs.302 on
25/01/2016 for Zerodha, Bangalore
3.After each transaction profit reinvested in
more number of lots.
4.Brokerage and taxes not considered for
calculation asset value at the end of each
transaction.So Projected asset value is very
high. This figure canot be achived.
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5.Conditions for entry are minimum Rs.2
for H/L and Rs.1 for close price of the
candle

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All prices and profit, cumulative profit in
INR

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B. Nageswara Rao is a Graduate Mechanical
Engineer from JNTU College of Engineering, Kakinada, A.P.,
India. He is Post Graduate in Industrial Engineering from
NITIE, Mumbai, India. He is Post Graduate (Part Time) in
Financial Management, from Institute for Financial
Management and Research (IFMR), Chennai, India. . He has
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31 years experience in Production Engineering and Supply
Management in AREVA T&D India Limited, Chennai, India.
He was teaching Industrial Management and Machine Drawing
in ACE Engineering College, Andhra Pradesh, India for
Graduate Engineering Programme in Mechanical Engineering
till June2014. His research interests are in Operations
Research, Cost reduction and Portfolio Management.
He is author of 11 e-books 1.The Last Wonder-Universal Day
Trading Model 2.Supply Management. 3.Day Trading Model
for Global commodity markets for infinity ROI 4.Invention of
God-D 5.Day Trading Model for Global Stocks and
Commodities with Relative Force Indicator for Top Reliability
and Profits6.Grab the cream from jumping and crashing prices
of global stocks and commodities.7. Universal Algo code for
Global stocks and commodities for unlimited profits with high
reliability. 8.Tracing price path of stocks and
commodities.9.Use Price vision through volume peaks for
successful trading of stocks and commodities10.trade crude to
make 3 times profit in MCX INDIA in a day.11.Universal
trading process for global stocks and commodities. All are
published in Amazon.com.
He is Authorised Person for Zerodha, Bangalore in Hyderabad
He can be contacted by mail
nageswarabandaru@redffmail.com for your training needs.

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