New intraday strategy- both buy and sell for sure profit

mmohanar

Active Member
#1
Dear traders

This is new strategy your opinions are welcome iam back testing this strategy. It gives good results.

Strategy

Step 1: Note down high low at 9.45am(30mins) 15mins or 1hr any time frame OK.

Step 2: place both buy & sell 2 seperate orders at high(if high breaks) or low(if low breaks) of 30mins opening range. It must be both the order at same price.

Step 3: place stop loss 0.6% of entry price for both order.

Step 4 : any one order will be closed sure.the other one cover the loss and gives you profit.

But you must wait upto 3.15pm. You close the remaing order at 3 to 3.15pm.

Important matter is don't buy/sell at any price. You must buy/sell at breakout price.

Today(28.5.2015)

I tried below.

Reliance's high/low at 9.45am.

892/885.35

Both buy&sell order at 892.10(high breaks first)

Buy order @892.10 sl886.75 SL triggered loss booked Rs.5.35 * 100 shares Rs.535.

Other order

Sell order @892.10 sl 897.45 SL not triggered and day low went at 3pm to 874.10 so profit Rs.18*100 shares Rs.1800

So today profit Rs.1800-535=1265 rs.

So I think this strategy will give consistent profit.

Kindly do paper trade this method before entering with real money.

Also your opinions are welcome

Regards.

Mmohanar.
 
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suri112000

Well-Known Member
#2
Not understood a crucial point.

How do you both buy and sell the same scrip intraday at same price? Because if buy order is first triggered and the moment the sell order is also get triggered, the position gets squared off because there is matching buy and sell. You will be left with no open position.

Please explain in detail.
 

mmohanar

Active Member
#5
Dear hmp

Why so much of confusion below I explain in detail.

Ex: reliance high/low at 9.45am is 892/885.35.

But last traded price is 889.65. Now you place one buy limit order at 892.10 and place one more sell limit order at 892.10(if breaks high of 9.45am range).

Now you have 2 separate orders in your margin position.this can be done in equity trading in margin and f&o.

Then put SL 0.6% for both orders.that's all.

If reliance price goes down then buy order SL will be triggered. Same goes up then sell order SL will be triggered.
If market flat then both order remain in your position.you may be charged brokerage only.


Regards

Mmohanar
 
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jahan

Well-Known Member
#6
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suri112000

Well-Known Member
#7
I donot know with which broker you are trading.

I am trading with 4 brokers (zerodha, sharekhan, RKSV, SBIcap sec) none of them allow simultaneous holding of buy and sell positions of same scrip with same quantity.

It is possible only when you trade one leg in intraday and another leg in delivery based (Only for buy orders). Still there are difficulties like you will not have leverage on delivery based leg and you need large funds to match other leg quantity. Secondly, you need to convert delivery based leg before square off time to intraday to able to square off the position on the same day.

What you are contemplating is seen in forex trading with few brokers but not in stock trading with popular brokers of India.
 

suri112000

Well-Known Member
#9
Dear suri112000

Iam using icicidirect.it is easy this option available in all securities I think.it is easy.iam doing in margin trading in icicidirect.

Regards

Mmohanar
Hmmmmmmmmmm.....................heavy brokerage with icicidirect.

I have not tried with them........and have no plans to try also because of their exorbitant brokerage especially for intraday players.
 

manishchan

Well-Known Member
#10
Dear suri112000

Iam using icicidirect.it is easy this option available in all securities I think.it is easy.iam doing in margin trading in icicidirect.

Regards

Mmohanar
Are you sure you can buy and sell the same script at the same price and have both the position open ?? As far as I know NO BROKER in India provides this.

Consider this - You bought nifty @ 8500.. 1 lot. You sold nifty @ 8500.. 1 lot. So your position is null. You can't have 2 orders (1 long and other short) open.


I would love to see if ICICIDirect provides this. Please share a screenshot when you open this position tomorrow. If its true, I'm opening an a/c wid them right away ! :D
 
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