NIFTY future profits when Open = High or Open = Low

I did a study of nifty futures data and analysed what happens if one takes a trade whenever nifty future  open equals the low or high.

Idea is to take a trade within 5 minutes and close at end of the day.

Data analysed is from 2-AUG-2018 to date and has 501 trading days.

There were total 32 trading days where nifty future had open=high or open=low. 

Total points gained were a stupendous 2400 points. 

Of course, all this is in the past and profits in future will obviously not be the same.

But as a strategy it makes sense to trade these days blindly with an SL...risk reward is likely to be awesome.

In fact, one can do this analysis for all FnO stocks and get even more opportunities.

How to trade cash stocks intraday

 

4. Decide the quantity and stop loss. Assuming a capital of say 100,000 and risk of 1%, the stop in points works out to be 10 points and a quantity of 100 shares. 5. Don't use too much leverage as it can kill you. 6. Use a method to generate buy sell signals. Contd...

— Linus Trading (@LinusTrading) August 12, 2020

Some Daytraders making money consistently

More than Rs 60 lakhs mtm profit today.
Excited to trade with @Trendmyfriends . pic.twitter.com/znXpg5WQsK

— P R Sundar (@PRSundar64) May 30, 2019

Price action trading... nice by @ForNifty

Trade 1: +22
Trade 2: +4
Trade 3: +22
Trade 4: +19
Trade 5: -6
Trade 6: +15#DayTrading #Nifty #OptionsTrading #PriceActionTrading #NakedTrading pic.twitter.com/7tF1exdagC

— Nifty For Living (@ForNifty) June 25, 2019

Things I learned about life from day trading millions of dollars

I was a day trader for many years, and it almost killed me.

I made money by making profits on my own money and also taking a percentage of the profits for the people I traded for. I traded up to $40 million or $50 million a day at my peak. I did this from 2001 to 2004.

I learned about day trading but I also learned a lot about myself and what I was good at, what I was horrible at, and what I was psychotic at. Things that had nothing to do with day trading.

Day trading is the best job in the world on the days you make money. You make a trade, then maybe 20 minutes later you are out of the trade with a profit, and for the rest of the day you think about how much money you made.

It’s the worst job in the world on a bad day. I would make a trade, it would go against me, and then I wanted my heart to stop so my blood would stop thumping so loudly.

I did it for years, though, because I was unemployable in every other way.

Here’s what I learned. All of these lessons I will certainly use today, many years after I stopped day trading.

A) You can’t predict the future. Everyone thinks they can. But they can’t.

This applies not just to trading but everything. You could be married for 10 years and the next thing you know you are divorced and you would not have predicted that.

You could be healthy all your life and drink your vegetables and exercise and reduce stress, and a year later you could be dead from cancer.

You’d have much less stress if you let go of trying to predict the future.

You can always seek to increase the odds in your favor. if I don’t jump off bridges, for instance, it’s more likely I’ll be alive a year from now. But certainly a path to unhappiness is thinking the future can be predicted and controlled.

B) Hope is not a strategy.

If you get to the point where you “hope” you don’t get ruined, then you did something wrong beforehand.

Read more at https://techcrunch.com/2013/11/02/12-or-13-things-i-learned-about-life-from-day-trading-millions-of-dollars/

1 cr in 17 days

1 cr complete for da month, in 17 days!!! pic.twitter.com/e8p5IHjHai

— Ashwani gujral (@GujralAshwani) July 17, 2018

20L in a day.

And people still find fault with his trades.

3 ways to make money today using 5 min charts

First hour range breakout method
- break of first hour low was sell signal
- bought 2 lots of 11000 PE around 85 as my SL was high
- cover at close (110)

- this method is the easiest and every one should get same results.

New trading strategy (modified)

I will be test drive an extremely simple trading strategy. This is just to prove that no intelligence is required for trading/ making money.

Strategy is the opening hour high/ low breakout system. Nothing great about this. I will just modify and add few points above the first hour high / below the first hour low and take a system generated trade.

My broker allows me to place an intraday order with a predefined stoploss and automatic square off by 3.15 pm. So I can enter an order and then take a day off. This is also called time based exit.

Profits is whatever the markets give. Risk per trade is under 0.5% of trading capital.

Note: 
- I will look at the first hour range as defined at 10.00 am and not 10.15 am.
- if first hour range is large, then consider some appropriate SL
- this strategy does not use trailing SL. You exit on SL hit or market close

Sample chart:

NIFTY intraday 15-JUN-2018

- Sell signal on kplswing indicator
- ignored this as close was near the highs and
- very good support around 10775 F

NIFTY intraday 14-JUN-2018

On market open
- short signal on 5 min, 15 min, kplswing etc
- took short on first 5 min bar

- covered around 10.20
- reason: support at 10775 F

- if this breaks, I may reconsider new short trade.

NIFTY 5 min charts 12-JUN-2018

- I am long as per kplswing signal
- expect half of the trades to fail.
- risk of entry at time of this post is much lower than when I took trade
- SL 10815 F
- risk per trade 0.5% of capital

- not sure of doing this more often as it is a distraction.

How to double your money in day trading in 2 months

Day trading allows us to leverage and trade comfortably with very small capital of 50-70k in stock and Index futures.  If you know your job well, this is how you can double it in just 2 months,  Read it herehttps://t.co/NK6y5v0l6b#TechnicalAnalysis #trading #INTRADAY

— UR Dave (@charttechnical) June 1, 2018

Get rid of the need to trade everyday

My crazy wild trades today

Ideally MTM on close should have been 40K but made some bad exits.

Contract note of my fast trade

Many people refused to accept my fast trade of 26-DEC.

Well here is the contract with timestamps. Bought 7900 PE at 9.25am and exited at 10.00am. Note the high for the put was around 45 but then you cannot exit at highs.

Was out of the house by 10.15 (no contract note here).

Disclaimer: there have been many trades where I have lost money at the same speed. But the value of profit making trades vastly exceeds that of loss making trades.

Hourly swing trading strategy for day traders

This is a simple strategy for day traders and is an adaptation of my monthly hi/lo swing strategy.

It uses no indicators - all trading is  a game of probabilities; more analysis does not lead to better results.

Strategy: trade long on breakout above first hour's high with previous hour low as trailing SL.

Risk mgmt: Position sizing takes care of the risk and I recommend a risk per trade of 0.5%.

If you cannot control the risk in a trade, stay away from trading/ take up some other occupation.

Guidelines:
- use 5 min candlestick charts
- wait for completion of first hour candlestick i.e. 10 am
- mark the range formed so far (high low)
- these are your buy above / sell below levels.
- for a long trade, breakout bar close should be near the candlestick high.
- if long, SL is your previous hour's low and vice versa.
- trades to be closed by 3.30 or when your trailing stoploss is hit.

Note:
- sometimes, markets tend to trade within the first hour hi / lo range. In this case, take the first hour hi/ lo levels as breakout levels for the day.
- when a breakout happens, wait for completion of candlestick.
- above is important as a bar in progress can eventually form an hammer/ inverted hammer in which case trade should be ignored.
- this strategy can be used for cash and futures chart... just ensure liquidity is excellent.
- expect half the trades to fail (statistically).

Sample chart

NIFTY hourly chart trade example

This post is further to my post on hourly swing trading strategy. I plan to post this everyday.

- break of first hour high/ low was short signal
- stoploss hit shortly before 1pm
- long not initiated as NF close to day's high
- breakout above day's high failed so no trade considered
- did nothing the day afterwards

NIFTY futures 5 min charts

- initial trading range gets defined by 11am
- breakout from this range is bullish
- but signal to be ignored as buy comes near previous day's high
- markets unable to sustain at higher levels and correct
- missed the short trade.

NIFTY futures 5 min charts

- breakout from initial trading range was bullish
- cover on close

NIFTY 5 min charts

- initial market was weak
- short trade not recommended as trend is up on higher time frame
- buy signal just before 2 pm
- cover on close