The Trading Rulebook

by Eklavya Traders

Eklavya Traders
 Tough Mindset 

How to Clear Direction

trade and Reversal

Premium Decay

when to Entry Timing

trade? Strike Price

Courage

Eklavya Traders
 Mind se t
Tough

Market is merciless

Market is not going anywhere

Market punishes greedy, impatient and stupids

Your money is hard earned always respect that

Getting into the trade is the last thing that you do

Build consistency first and only then increase the lot sizes

Eklavya Traders
 n \ B e ginner
L e ar ning pla
Mind se t \
Tough
Basics of Options Trading

Support and Resistance

Market respects WTT and WTB

Game of percentage
Theory
brilliance , a shikari COA 1.0 and COA 2.0

Four magical lines

with shatir dimag and Diversions



strategic mindset Planning a Trade (Pen and Paper)

Executing a Trade (Papertrade)

Exiting a Trade (Papertrade)

Practicals
Everyday observe market

Eklavya Traders
 se t \ B asic s
Tough Mind

90% of traders face losses because market

punishes greedy, impatient and stupids
India at large is statistically a poorer
country, fears stock markets and are less
Poor → Greed

educated, lot of options buyers comes from Impatient → Fearful

this space, who sometimes earns money

but don’t know how to keep it. Stupids → Trappy
Eklavya Traders
 r - S tep 1
g a t ra de
B e c omin
Mind se t\
Tough

Always set yourself some target for the day

Tapping greed, between 10% - 20%, you will achieve that
and exit, take home the money you earned
market is not going and give it to your loved ones, no business
in the entire world makes this much in a day
anywhere , you will against the capital invested
get an opportunity Even 1000 rupees per day calculates to 21000 in a Month
that’s well above 70% of India’s population paygrade,
tomorrow once you have enough consistency you can increase the
lot sizes but always keep a target, without reasonable
targets greed part won’t go away

Eklavya Traders
 tra der - S tep 2
t \ B e c oming a
Tough Mind se

Overcoming
Impatience, wait in Wait for either top or bottom, whether its
safe or risky, if its risky, start with one lot,
stealth mode for a and it is going against then average it when
it becomes safe, simple
shikaar to arrive, This is more on urge mitigation technique, start small
there is timing for and scale big. this is a standard business practice, let’s
think like one.
everything
Eklavya Traders
 ng a t ra der - S tep 3
nd se t \ B e c omi
Tough Mi

Avoding trappy Why jump into somebody’s battle, If sellers

situation, don’t themselves are fighting for supramacy, who
are we to get into that fight, avoid the chaos,
move ahead if you let the situation get clearer direction
sense something Let the market decide movement first, then let them
build situation to make that happen and then you can
phishy think of it whether to move forward or not. Don’t 2x the
confusion, let them figure out first then we’ll see to it.

Eklavya Traders
 Tough Mindset 

How to Clear Direction

trade and Premium Decay

Reversal

when to Entry Timing

trade? Strike Price

Courage

Eklavya Traders
 ther wise ?
eha ving o
hting or b
ding or fi g
they de ci
tion \ Are
ire c
Clear D

If they are Sellers are more impatient and insecure than buyers
deciding, let because they sit on infinite loss commitment of
buying back whatever they have sold. And in between
at least one stupid buyers jump and create a barrier for themselves
side become for the strike price not to move either way.
strong Sellers follow below pattern most of the time about
Timings and Phases

Eklavya Traders
 ses Eklavya Traders
g and P ha
on \ T imin
e c ti
Clear Dir

Sequence of everyday movements

p er Risk y ! p er Risk y !
Su Su
9:15-9:20 9:20-9:45 10:00-11:00-12:30-2:00 2:30-3:30
5-10 minutes 15-20 minutes 60-120-180-240 minutes 60 minutes

Fibb retracement Yesterdays They start preping for the day, and try to limit They round off or exit for the day, and start
gets completed movement the movement as much as possible, you can profit booking so the dynamism is high,
completes it observing LTP calculator. Plan trades based on 
 expect the unexpected movements. 

trejectory COA 1.0 and confirm with COA 2.0 Plan trades based on COA 2.0 and confirm
with COA 1.0
BTST Trade exit based LTP Trade based on LTP Trade based on Support, Resistance, COA 2.0 Trades, BTST Trade plan
on Fibb Ret OI to OI. Only after OI and OI change. Direction Decay Value based on Fibb Ret. for next day
the decay and Exit target

Risk=Rewards 
 Slight Risk = Rewards 
 Low Risk — Good Rewards

High Risk = High Reward 

+ Simple + Quick +Observation and Analysis + Simple

EXIT ASAP AT FIBB RET.

ENTRY - EXIT
Max 2 ENTRIES & 2 EXITS
ENTRY - EXIT & BTST ENTRY IF FIBB SUPPORTED

DO NOT ENTER DO NOT RE-ENTER DO NOT RE-ENTER in 3RD TIME HIGHLY RISKY

10% 20% 50% 20%

First things first T imings
e c tion \
r
Clear Di
sc e nario
fa
Entry and exit timings Typic al S e que nc e o

Premium is already 1 Scenario got Created

Good time to exit and
decaying here and time bad time to enter
taking movements 2 Market will complete it’s current trejectory

3 Market will reach at a diversion

Premiums gets 

a spiked in this 4 Market will take a reversal
range and Good time to enter
and bad time to exit
these are quick 5 Market will wait at next diversion
movements
6 Market will continue it’s reversal journey
Premiums starts setting
Good time to exit and
on new decay but yet to bad time to enter 7 Market completes it’s reversal
decide where to move
further Eklavya Traders
 n \ T imings
e c tio
Clear Dir

Trends and behaviour

Exit, profit Re entry only after the
booking in the decay, COA 1.0, Value and
momentum Reconfirm with COA 2.0 Higher the movements early was longer it remains
sideways later

1/2 STPs trendy it remains for the rest of the day

bouncing between upper circuit and lower circuit

Sideways or super short range early in the day

higher movements later in the day (Expiry Market)

Risks increase with the number of times market

Usually a sideways market because it hit’s the strike price and executes a diversion trade
Entry only after the decay, has given enough movements earlier before making next move

COA 1.0, Value and Market prioritises correction of high gap-up and
Reconfirm with COA 2.0 gap downs, usually covers them in a Bullish+1/+2
and Bearish-1/-2 momentums
Profit booking while
in the momentum

Eklavya Traders
 on \ T imings
e c ti
Clear Dir

Acceptable and Unacceptable

Part of market Unacceptable and
and it’s okay to totally stupid
You can incur minor profit Never make huge losses
You can make huge profit
You can incur minor losses Never trade against COA 1.0 and COA 2.
Never enter when premiums are hig
Always enter after the premium decay and on valu Never involve in already confused stat
Always exit when premiums are hig Lower the risks if already made higher profit
Always double confirm a trade with 2. Set yourself target for the day and trade only
Diversion trades are desperate one within extra gain
Let the decay work for you, risk 50, if goes against Always keep a shikari mindset, not everyday you’ll
average at 5 get to kill, but when I do I am all in
Limit spending time in a trade lesser the bette Risk small, average when it becomes safe
Patience is the key ornament for traders
Eklavya Traders
 D e c ay Zones
ire c tion \
First things first C lear D

Dangers of decay zones

Timing is critical, majority of the market is decaying the premium only few times
it will reach the strike prices and increase the premium

DECAY ZONE

DECAY ZONE
DECAY ZONE

DECAY ZONE
DECAY ZONE

DECAY ZONE
Eklavya Traders
 c ay Zones
c tion \ D e
First things first Cle ar Dire

Many possibilites and but 26270

very few actual trades Put - Spike

Call - Decay

Here you see all the trades possibly have 26240

taken, and how the decay happened Put - Spike

Call - Decay

26230
As time travelled, all of them Put - Spike

Call - Decay
have decayed because of theta 26220
and time value and in turn sellers Call - Spike

26200
Put - Decay 26217
earning money Call - Spike

Put - Spike

Call - Decay
Put - Decay
This also shows who got trapped
between aur upar jayega and aur neeche
aayega phenomenon 26180
Call - Spike

26170 Put - Decay

Call - Spike

Put - Decay 26160

Call - Spike

Put - Decay

Eklavya Traders
 D e c ay Zones
First things first r Dire c tion \
Clea

Who earned the most by

these movements
Here you see all the reds and very few greens, this is
the total premium lost during the day and how much
decay premium sellers have earned
In reality it moved 50 points between 26200 - 26150, but
Sellers are
created a perception there is a bull run or bloodbath and the money
hit all the strike prices makers

Eklavya Traders
 D e c ay Zones
First things first r Dire c tion \
Clea

The actual movement during the day

The ups and downs are parts of the market but not the final picture, the movements
during the day won’t dictate future possibilities, so no pre-plans

THIS
IS TH
E ACT
26200 UAL M
OVEME
NT OF
THE A
DAY,
REST
PREMI
UMS A
RE DE
CAYED
26150
Eklavya Traders
Next up- Tough Mindset 

Clear Direction

How to Premium Decay

trade and Reversal

when to Entry Timing

Strike Price

trade? Courage

Eklavya Traders
Thank you!

Eklavya Traders