We will be using a price action and an Indicator for Trade and I have tested this in Intraday only with NIFTY Options!!!
This strategy will not give you much more return but as far as I am concerned when I trade in Options I look for the % of return rather volume of Return. But this strategy will give you a decent return of 5% to 10% per trade. As I said I have tested this strategy with NIFTY only and in the coming threads I will take you through the charts of Entry, Exit & SL
Basic Setup
Time Frame for Trading: Intraday chart of 30 or 15 Min time frame
Time Frame for selecting the strike Price: EOD
Scrip/Underlying: NIFTY
Indicator:
1). WMA (Weighted Moving Average) of High period 5 & WMA of Low period 5
2). CCI with 14 period
Rules/Strategy
Entry Setup
Rule 1). We look for the 15 or 30 Min candle to close above High of WMA5
Rule 2). CCI Reading > 50
Rule 3). Don't consider the setup when CCI Reading is >=200
Rule 3). 15 or 30 Min candle should not touch High & Low of WMA5
At time Rule 1 & 2 will be met and the candle will touch High & Low of WMA5 in such case don't initiate the trade and wait for another setup to form.
When all the above mentioned conditions/rules met place Buy Order on the High price of the trigger candle.
SL Setup
Rule 1). Low of the trigger candle.
Exit Setup
Since we are trading with NIFTY Options We aim to exit with Rs.1000/- (20 points)
I will make this clear with the chart's in the coming thread. As I said the return of Rs.1000/- is decent for the capital of Rs.10000/- per trade which is good enough as we are getting 10% return. :thumb:
I have not posted the Short sell setup as In OPTIONS we cant do short sell.
Cheers
Karthik
