There are many good strategies for trading Nifty on this forum. Savantji's Pivots rocks as does Pride's ema cross overs, AW10's NR7 and Options strategies, Radha's various pivots, Dhiraj's 2652 and others I might have left out. I am adding one more to this list. Let me call it The Red Line Strategy.I don't know if other forum members have already explored it, if they have please point it out to me so that I can save the redundancy.
It requires no calculations of any kind. No Charts. No complex indicators. No special software. Clear entries and clearer exits. Completely intraday, no carry over of positions. predefined stops. The red line is the line of previous close. It is the value put out by the exchange after adjustment for the last half hour of trade not the last traded price.
Entry: Long when NF crosses the red line from below. Short when NF crosses the Red line from above. Filter: .1% rounded of to the nearest whole number.
Initial stops: .1% from Red line on the other side. The initial stops will be SAR for the complete duration of the day. As the trade moves in our favor move stops in a defined manner as detailed below.
Lot Size: 5 lots of Mini Nifty.
Exits: 2 lots at 20 points profit. Balance 3 lots stops at initial .1% maintained. Next exit 1 lot at 40 points profit. Stops for the balance 2 lots now moved to the first exit point of 20 points profit. Third exit, one lot at 60 point profit, the balance one lot SL maintained at first exit point of 20 point profit. Hold till SL is taken out for the last lot or close position at 3:27.
The SAR at all time will remain the .1% from Red line value. The core principal is be long above the red line and short below it. It is much like I am defining the Red line as my pivot point.
Intraday trading demands quick taking of profits as volatility is more in shorter time frame. No monetary targets set. Target: Do the correct trades. Profits will be defined by the market, losses will be defined by me.
Only paper trades on Mini Nifty for some time. I will not be looking at the live markets to post my result. I will be looking at the EOD figures and charts to post the figures.
Drawbacks: Since this is a paper trading mode, slippages not taken into account. Brokerage and other charges not taken into account. Whipsaws around the red line will be part of the game. There may be many days without trades as the market will open gap up/down and not cross the Red line. So not good for those who need to trade everyday.
I will post the trades everyday as far as possible. Others are welcome to post/refine the strategy. I will be trying it only on the MiniNF for now.
Anatomy of a trade
MNF: Mini Nifty Futures
Red line value = 5000 (previous adjusted close)
Filter = .1%
Long Trades: Be alert when MNF comes near the red line either from below or from above. Enter at 5005 when MNF moves from below the Red line or comes from above touches the RL and bounces up.
Entry: (100MNF)@5005
Initial Stoploss: 4995 (Filter on the other side of the Red line)
First Exit: 40%(40MNF) at 5025 Stops for 60@ at intial stop
Second Exit: 20%(20MNF) at 5045 stops for balance at 5025
Third Exit: 20%(20MNF) at 5065 stops for balance 20% at 5025 maintained
Fourth Exit: 20%(20MNF)at 3:27 or when the stops taken out.
Short Trades: Be alert when MNF comes near the redline either from below or from above. Enter at 4995 when MNF moves from above the Red line or comes from below touches the RL and falls back.
Entry: (100MNF)@4995
Initial Stoploss: 5005(Filter on the other side of the Red line)
First Exit: 40%(40MNF) at 4975. Stops for 60 at initial stop.
Second Exit: 20%(20MNF) at 4955 stops for balance at 4975
Third Exit: 20%(20MNF) at 4935 stops for balance 20% at 4975 maintained
Fourth Exit: 20%(20MNF)at 3:27 or when the stops taken out.
It requires no calculations of any kind. No Charts. No complex indicators. No special software. Clear entries and clearer exits. Completely intraday, no carry over of positions. predefined stops. The red line is the line of previous close. It is the value put out by the exchange after adjustment for the last half hour of trade not the last traded price.
Entry: Long when NF crosses the red line from below. Short when NF crosses the Red line from above. Filter: .1% rounded of to the nearest whole number.
Initial stops: .1% from Red line on the other side. The initial stops will be SAR for the complete duration of the day. As the trade moves in our favor move stops in a defined manner as detailed below.
Lot Size: 5 lots of Mini Nifty.
Exits: 2 lots at 20 points profit. Balance 3 lots stops at initial .1% maintained. Next exit 1 lot at 40 points profit. Stops for the balance 2 lots now moved to the first exit point of 20 points profit. Third exit, one lot at 60 point profit, the balance one lot SL maintained at first exit point of 20 point profit. Hold till SL is taken out for the last lot or close position at 3:27.
The SAR at all time will remain the .1% from Red line value. The core principal is be long above the red line and short below it. It is much like I am defining the Red line as my pivot point.
Intraday trading demands quick taking of profits as volatility is more in shorter time frame. No monetary targets set. Target: Do the correct trades. Profits will be defined by the market, losses will be defined by me.
Only paper trades on Mini Nifty for some time. I will not be looking at the live markets to post my result. I will be looking at the EOD figures and charts to post the figures.
Drawbacks: Since this is a paper trading mode, slippages not taken into account. Brokerage and other charges not taken into account. Whipsaws around the red line will be part of the game. There may be many days without trades as the market will open gap up/down and not cross the Red line. So not good for those who need to trade everyday.
I will post the trades everyday as far as possible. Others are welcome to post/refine the strategy. I will be trying it only on the MiniNF for now.
Anatomy of a trade
MNF: Mini Nifty Futures
Red line value = 5000 (previous adjusted close)
Filter = .1%
Long Trades: Be alert when MNF comes near the red line either from below or from above. Enter at 5005 when MNF moves from below the Red line or comes from above touches the RL and bounces up.
Entry: (100MNF)@5005
Initial Stoploss: 4995 (Filter on the other side of the Red line)
First Exit: 40%(40MNF) at 5025 Stops for 60@ at intial stop
Second Exit: 20%(20MNF) at 5045 stops for balance at 5025
Third Exit: 20%(20MNF) at 5065 stops for balance 20% at 5025 maintained
Fourth Exit: 20%(20MNF)at 3:27 or when the stops taken out.
Short Trades: Be alert when MNF comes near the redline either from below or from above. Enter at 4995 when MNF moves from above the Red line or comes from below touches the RL and falls back.
Entry: (100MNF)@4995
Initial Stoploss: 5005(Filter on the other side of the Red line)
First Exit: 40%(40MNF) at 4975. Stops for 60 at initial stop.
Second Exit: 20%(20MNF) at 4955 stops for balance at 4975
Third Exit: 20%(20MNF) at 4935 stops for balance 20% at 4975 maintained
Fourth Exit: 20%(20MNF)at 3:27 or when the stops taken out.
Last edited:
