Awesome intraday strategy!But needs filter

#1
Hey all i would like help in fine tuning my intraday strategy for f&o stocks.

So the strategy is :-

1.Scan for stocks which have opened above or below yesterday high/low.

2.Buy/Sell when price break above/below the first bar of the day(90 mins charts)

3.Stop loss is closest minor swing high/low( zoom in to 10 min) with target left open to be closed toward end of day.

I am using 90 min bar charts as anything below that will give too many false calls.Any idea how to increase the hit ratio and take fewer calls with some additional filter for this strategy as even though i have increased the time frame to 90 min there are many days where stocks go in opposite direction.One way is to wait for the next bar to close above/below the first bar of day but then at sometimes it becomes to late to take the trade as the price has moved too much.

I have seen the performance on f&o stocks for past 2 months it is quite decent. (Rs.2000 avg per trade and 130 trades were generated)

Any help with tweaking(mainly adding some filter )or is anyone already using this strategy all help is welcomed.
 
Last edited:
#2
Ichimoku
 

McNish

Active Member
#4
- Look at activity of previous day. Any thing to suggest the the price will strongly move in the direction of the BO! Divergace, volume, news, results, support or resistance, etc.
- Look at activity of the current day. Same factors as above.
- Align to Index / Sector.
- Any inside bar or Narrow range activity.
- Check 5 days volatility and 5 days atr and see if price still has space to move for the day in the direction of the break out.
- Careful if it is getting in over bought or over sold territory.
- Check premarket activity of it for the day.
- Figure out the 1hr volume. what's it's weightage as compared to the past few days.

More in Next, Cheers,
 
#5
Mcnish,

Thanks i have taken a look at your suggestions many of them i have studied before.Actually i am trying to make the strategy as mechanical as possible so was looking for some added indicator type filter.For now i think one has to sacrifice on some trades and wait for the next bar to close above the previous bar.
 
#7
Could you elaborate how?
First always maintain what you said before:
I am using 90 min bar charts as anything below that will give too many false calls.
Do not skip a second, watch and digest these two 1-hour video with a clean head. Download
Then apply your strategy. It works 80% of the time provided you do not give back everything in the remaining 20% of draw-down.
 
#10
So the basic issue is that the system overall is doing well but thing is it generates at least 9-10 scrips on many days in and its difficult to know which out of the the 10 will do well unless you take all the trades and you have that much capital.

Btw Last 5 days 34 trades were generated with an avg profit of Rs.10,000/.
 

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