Hi Friends,
I would like to use this thread to explain open price strategy. This is purely an intraday strategy. Please fine tune this to ur needs nd trade accordingly.
This is the first time i am writing on public forum. So bear with my english and gramatical mistakes.
Open price strategy is purely based on the open price. This can be applied for both indices and stocks as well.
For explanation purpose, lets take nifty as example with 2 lots.
We will take the positions based on the nifty's price at 10:00. Lets say the open price(@9:55) is 4500. Place a long order at 4510(2 lots) and short order at 4490(2 lots). In the first 10 mins if both the orders gets executed, we shall place the orders again. If not one of the orders will be executed and we will ride the trend. Now suppose 4510 long got triggered and nifty moves up in the same direction and reached 4530. Book one lot at 4530 and place a stop loss order at open price for 2 lots. If nifty does not hit open price again by the EOD, we will ride the trend. In case if the trend changes and goes below open price, my stop loss will be triggered and now we are short on nifty with one lot. Again place a stop loss with 15 pts at 4515. Now hold your positions till 3:25 and clear ur positions.
U might be wondering on why i said to hold on to your positions till 3:25 with out trailing stoploss(I always keep stop loss at open price only). Its up to you to trail ur stoploss based on ur own analysis. Some times i use EMA crossover between 3D & 21D on 5mins chart to exit.
The simple funda is that we stay in the direction of trend from its open price. We will make big money if the index or stock moves by 2-3% in either way.
THIS STRATEGY WILL NOT WORK ON DAYS LIKE DOJI, WHICH IS AROUND 10-15% OF THE TOTAL DAYS. Even on such days we can manage our trades in no loss/no profit zone by trailing the stoploss.
Rules:-
1) Always place double the quantity for stoploss order at open price. By doing this u will clear ur holdings and take positions again.
2) Based on this strategy i take positions only till 2:00. Even if the prices goes above or below open price after 2P.M, i donot trade.
3) For the first one hour of the trade keep a stoploss of 10pts from open price. Later if the price again touchs the open price, use a stoploss of 15 pts.
4) 10pts is taken as the initial breakout range which is .25% of 4000(can be adjusted with the live experience). If nifty is at 2500, then the initial range would be 5-6 pts.
5) If the price move more than .25% in the first 5 mins before we could place an order, then we wait for the price to come back to out range.
6) On gap up/down of more than 1% days, its advisable to trade in stocks rather than nifty.
Please provide ur comments and feedbacks.
Thanks,
Siri
I would like to use this thread to explain open price strategy. This is purely an intraday strategy. Please fine tune this to ur needs nd trade accordingly.
This is the first time i am writing on public forum. So bear with my english and gramatical mistakes.
Open price strategy is purely based on the open price. This can be applied for both indices and stocks as well.
For explanation purpose, lets take nifty as example with 2 lots.
We will take the positions based on the nifty's price at 10:00. Lets say the open price(@9:55) is 4500. Place a long order at 4510(2 lots) and short order at 4490(2 lots). In the first 10 mins if both the orders gets executed, we shall place the orders again. If not one of the orders will be executed and we will ride the trend. Now suppose 4510 long got triggered and nifty moves up in the same direction and reached 4530. Book one lot at 4530 and place a stop loss order at open price for 2 lots. If nifty does not hit open price again by the EOD, we will ride the trend. In case if the trend changes and goes below open price, my stop loss will be triggered and now we are short on nifty with one lot. Again place a stop loss with 15 pts at 4515. Now hold your positions till 3:25 and clear ur positions.
U might be wondering on why i said to hold on to your positions till 3:25 with out trailing stoploss(I always keep stop loss at open price only). Its up to you to trail ur stoploss based on ur own analysis. Some times i use EMA crossover between 3D & 21D on 5mins chart to exit.
The simple funda is that we stay in the direction of trend from its open price. We will make big money if the index or stock moves by 2-3% in either way.
THIS STRATEGY WILL NOT WORK ON DAYS LIKE DOJI, WHICH IS AROUND 10-15% OF THE TOTAL DAYS. Even on such days we can manage our trades in no loss/no profit zone by trailing the stoploss.
Rules:-
1) Always place double the quantity for stoploss order at open price. By doing this u will clear ur holdings and take positions again.
2) Based on this strategy i take positions only till 2:00. Even if the prices goes above or below open price after 2P.M, i donot trade.
3) For the first one hour of the trade keep a stoploss of 10pts from open price. Later if the price again touchs the open price, use a stoploss of 15 pts.
4) 10pts is taken as the initial breakout range which is .25% of 4000(can be adjusted with the live experience). If nifty is at 2500, then the initial range would be 5-6 pts.
5) If the price move more than .25% in the first 5 mins before we could place an order, then we wait for the price to come back to out range.
6) On gap up/down of more than 1% days, its advisable to trade in stocks rather than nifty.
Please provide ur comments and feedbacks.
Thanks,
Siri
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