Simplest intraday ORB strategy for NIFTY

Place the following orders at 10:00 AM
- SL Buy at the high of the day, and SL Sell at the low of the day
- When any of the above SL is hit, cancel the other SL
- Square-off at market price at the end of the day, during the last 5 minutes.

I wish I could also say that this is a profitable strategy, but I have not tested it as such.

I traded a variation of this strategy, from April to September 2009.

Instead to canceling the other SL when one SL was hit, I used to modify it to 0.6% from the entry price. I was trading between 5 to 20 lots of Nifty everyday. I missed very few trading days between April & September.

The 5 lakhs that I put into my trading account became 9 lakhs by August 20. From Aug 20 to September end, I had continuous losses, with very small wins in between, and my capital went back to Rs 5 lakhs by September end.

I was trading using ICICI Direct, and I believe their charges are high. But I was least bothered when I was making profits. When my capital went back to the initial amount, I stopped the strategy.

I also tried a few variations of this strategy in October:

- I tried this with options - in the first week of October. Buy a just ITM call when NF hit high of the day, or Buy a just ITM put when NF hit low of the day. Trade was done in just one direction - if I bought the Call, then I would not trade Puts on the same day. No stop losses. the results were profitable, but I dropped this strategy, since it was not as exiting as trading Nifty Futures. If futures moved 100 points, the moves on the options would be much lesser (obviously)

- I also tried a modified strategy for Futures - not squaring off the same day, and carrying positions over to the next day (from 10 Sept to 7 Oct). Results were disappointing.

I am working in an office, and cannot afford to follow Nifty the whole day. This strategy worked wonders for me when it was profitable. Usually, I was in a trade by 10:05, but atleast on 2 occasions it was executed after 12 noon.

I hope someone refines this strategy, does some more backtesting than I did, and modifies it to be more profitable. (It would still be profitable, if i had a lesser brokerage than the ICICI rates).

The 0.6% SL many bad exits, but i just did not have the guts to execute without a SL, especially since I was trading multiple lots. I initially had also considered the 0.8% SL, but finally I think 0.6% was not a bad SL. But having no Stop Losses and just existing at the end of the day may have given better results. I have not backtested all the choices.

Good strategy.

Try with a profit target of 20 points of NF. The success rate is high.:thumb:

I am tracking the Redline Strategy posts.... and hope to learn from it.

My strategy was " Chappar Phad", whenever I got a good move, I wante dto get all of it. Obviously, it had its drawbacks, which resulted in the big drawdown.

reposting from another thread ( some where in Aug.)

I have backtested lots of similar strategies which doesnt work.Simply its too simple to make money.
i wonder how you trade this one.

Hi Raja.

Try live / paper trading.

As a general trading way....Try and focus on capital protection. Move your SL to BE after you start getting a decent move. When to move can be decided only by you.But, I have been taught that every BE trade is a winner. It helps you to come back some other day and fight again.

Best:thumb: