Intraday trading with Nifty futures.

suri112000

Well-Known Member
#1
Dear mates,

I have been here for many years learning all pros and cons of trading. The time has come to leave active trading due to my changed job conditions. Before leaving the board, I will give a strategy to make descent earning trading nifty futures. I have traded this strategy for almost past 1 month with 400 qty and yielded a gross daily return of Rs.4,000 (this includes commission and charges of Rs.600-800). Hope you will find it useful and add to your arsenal.

Trade less and have patience for the right set up. You will make money.

Always have a contingent exit plan before entering the trade in case the trade does not work in order to save your skin.

No indicators are used except for 5 minutes candles chart.

How to trade :-

Let the first 5 min candle form. Wait for until the first 5 min candle is broken. Either high or low is broken. If high is broken, your bias is long until the low is broken. If low is broken first, your bias is short until high is broken. Normally I donot undertake any trades if a setup is not triggered on one side before the other side is broken.

Back to strategy. Say the high is broken. Now wait for a bar to be formed with a low high. Place a buy stop above the bar high. If the trade does not trigger and a new low is formed. Move the buy stop above the next bar high. Like wise move the buy stop until it is triggered. But the low of the first bar is not breached. Keep a strict stop loss of 20 points from the entry price and this is your worst exit scenerio. Exit the trade when you see some points profit. I usually exit the trade anywhere from 6 to 10 points profit.




Wishing all the best for traderji mates. Happy trading.
 

suri112000

Well-Known Member
#4
Hi Suri,

400 quantity means 16 lots per trade.

pls do clarify.
Yes....you are right. 16 lots trade.

Seems "Opening Range Breakout" strategy !
Is it? Not exactly.

It is a combination of three things. Range Breakout pullback, 1-2-3 setup, volatility expansion.

=================================================

July month has experienced 18 winners of 10 points profit target, 5 loosers of 20 points.

One lot trade.

18x10 = 180 points (Wins)
5x20 = 100 points (Losses)
deduct brokerage, charges 23x1.7 points = 40 points
Net Profit = 40 points.

16 lots (400 Qty) trade

Exit 300 Qty @ 10 points profit and leave remaining 100 Qty to hit SL or close above SL until 3:15.

Out of 23 trades, 18 trades have exited 300 Qty @ 10 points profit. Out of these 18 trades, 8 trades of 100 Qty have hit SL and 10 trades have resulted in big profits.

5 trades of 400 Qty have directly hit SL.

300 x 10 x 18 = 54000 (Wins)
100 x 49 x 10 = 49000 (Big Wins)
100 x 20 x 8 = -16000 (Partial SL Hit loosers)
400 x 20 x 5 = - 40000 (SL hit loosers)

Profit = 47,000 - 15000 (expenses) = 32,000.

=================================================

Do some maths to understand it better mates.:thumb:
 

SaravananKS

Well-Known Member
#5
Yes....you are right. 16 lots trade.



Is it? Not exactly.

It is a combination of three things. Range Breakout pullback, 1-2-3 setup, volatility expansion.

=================================================

July month has experienced 18 winners of 10 points profit target, 5 loosers of 20 points.

One lot trade.

18x10 = 180 points (Wins)
5x20 = 100 points (Losses)
deduct brokerage, charges 23x1.7 points = 40 points
Net Profit = 40 points.

16 lots (400 Qty) trade

Exit 300 Qty @ 10 points profit and leave remaining 100 Qty to hit SL or close above SL until 3:15.

Out of 23 trades, 18 trades have exited 300 Qty @ 10 points profit. Out of these 18 trades, 8 trades of 100 Qty have hit SL and 10 trades have resulted in big profits.

5 trades of 400 Qty have directly hit SL.

300 x 10 x 18 = 54000 (Wins)
100 x 49 x 10 = 49000 (Big Wins)
100 x 20 x 8 = -16000 (Partial SL Hit loosers)
400 x 20 x 5 = - 40000 (SL hit loosers)

Profit = 47,000 - 15000 (expenses) = 32,000.

=================================================

Do some maths to understand it better mates.:thumb:

Please check Brokerage and Tax expenses of my broker
it takes 3.88 Points per trade. even one go for discount broker like RKG he will get 3.5 expense per trade

18x10 = 180 points (Wins)
5x20 = 100 points (Losses)
deduct brokerage, charges 23x3.5 points = 80.5 points
Net Loss = 0.5 points.

Am I saying any thing wrong ?
 

jagankris

Well-Known Member
#6

Please check Brokerage and Tax expenses of my broker
it takes 3.88 Points per trade. even one go for discount broker like RKG he will get 3.5 expense per trade

18x10 = 180 points (Wins)
5x20 = 100 points (Losses)
deduct brokerage, charges 23x3.5 points = 80.5 points
Net Loss = 0.5 points.

Am I saying any thing wrong ?
Saravanan Sir,

With RKSV the brokerage is flat/zero.
So no per trade brokerage/no service tax on brokerage.
(The service tax is increased from 12.36 to 14% :mad:).

And stamp charges - it is 0.006% for TN while it is very less in other states.
(A trader should shift his home to neighbouring states from TN :mad:
or Trade Options.)

And hence the difference in calculations.
 

suri112000

Well-Known Member
#7
You cannot attempt this strategy unless your expenses are less than 1.70 points. With my broker, 400 Qty limits my expenses to 1.63 points. With MIS margin of Rs.5,800, we can trade 400 Qty with Rs.1 lakh capital. For safeside, keep Rs.2 lakh capital.

There are traders who keep expenses less than 0.50 points for each trade. Ofcourse, optimal trade size matters. They have advantage over us in trading.

Everything is favourable to big players.....starting from margin requirements to brokerage rates.
 

SaravananKS

Well-Known Member
#8
Saravanan Sir,

With RKSV the brokerage is flat/zero.
So no per trade brokerage/no service tax on brokerage.
(The service tax is increased from 12.36 to 14% :mad:).

And stamp charges - it is 0.006% for TN while it is very less in other states.
(A trader should shift his home to neighbouring states from TN :mad:
or Trade Options.)

And hence the difference in calculations.
Thanks Jagankris,

the high expenses keep me away from day trading (Last year one of my friend traded around 120 Crores in future at the end of year he got only Rs 15000/- profit Rs 75000/- went for brokerage and rs 125000/- went for taxes)
my trade journal also suggesting same (majority of profit goes as expenses)
Trading options involves high slippage

as you said,it is better to shift to neighbouring states :mad:
 

Purushotham

Well-Known Member
#9
Dear mates,

I have been here for many years learning all pros and cons of trading. The time has come to leave active trading due to my changed job conditions. Before leaving the board, I will give a strategy to make descent earning trading nifty futures. I have traded this strategy for almost past 1 month with 400 qty and yielded a gross daily return of Rs.4,000 (this includes commission and charges of Rs.600-800). Hope you will find it useful and add to your arsenal.

Trade less and have patience for the right set up. You will make money.

Always have a contingent exit plan before entering the trade in case the trade does not work in order to save your skin.

No indicators are used except for 5 minutes candles chart.

How to trade :-

Let the first 5 min candle form. Wait for until the first 5 min candle is broken. Either high or low is broken. If high is broken, your bias is long until the low is broken. If low is broken first, your bias is short until high is broken. Normally I donot undertake any trades if a setup is not triggered on one side before the other side is broken.

Back to strategy. Say the high is broken. Now wait for a bar to be formed with a low high. Place a buy stop above the bar high. If the trade does not trigger and a new low is formed. Move the buy stop above the next bar high. Like wise move the buy stop until it is triggered. But the low of the first bar is not breached. Keep a strict stop loss of 20 points from the entry price and this is your worst exit scenerio. Exit the trade when you see some points profit. I usually exit the trade anywhere from 6 to 10 points profit.




Wishing all the best for traderji mates. Happy trading.
Hi Suri ji,

Thanks,

Please look at the chart and give your inputs,

 

suri112000

Well-Known Member
#10
Hi Suri ji,

Thanks,

Please look at the chart and give your inputs,

Entry third bar low....is the short of 400 Qty. Cover 300 qty at 10 points profit which is yielded. Remaining 100 qty SL to be kept at 20 points away from entry points which was hit.
A scratch trade in total.

But see my actual trades below.........I have squared off all 400 qty at 10 points profit because I had to leave for some urgent work.

Trade timings are also given so that you can make out the exact entry and exit.

 

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