Strategy description

Strategy Overview

This intraday momentum trading strategy uses price action and volume-based indicators to trade Bank Nifty options on a short-term basis.

Instrument & Timeframe

Instrument: BANK NIFTY Options Spot
Entry Signals: Generated on 2-minute and 1-minute charts
Trading Hours: 9:16 AM to 3:15 PM IST (all positions closed before market close)

Discipline & Deployment

1. Paper trade for at least one week and verify consistent, satisfactory results before live deployment.
2. Halt live trading immediately if drawdown exceeds 4 % of capital; do not increase multiplier or volume to recover losses.
3. Only increase multiplier after one full month of performance, ensuring scaling is data-driven, not emotional.
4. Monitor performance regularly, log key observations, and make adjustments based on backtesting and real-time data.

Risk Management

Stop losses are built in to manage small reversals and sharp trend changes. Dynamic exit rules adapt to price action and volume signals. All positions are closed before market close to eliminate overnight risk.

Capital Requirements

Minimum capital varies with the ATM spot premium, ranging from ₹5,000 to ₹35,000 per lot. Maintain sufficient margin to avoid shortfall errors.

Important Notes

This is strictly intraday—no overnight positions. The strategy adapts to both trending and range-bound markets by combining momentum and volume indicators.

Disclaimer

This strategy is for educational purposes only and does not constitute investment advice. All trading involves risk and past performance does not guarantee future results. Factors such as market volatility, broker execution, connectivity, and platform stability can affect live performance. It is strongly recommended to paper trade first, maintain additional margin, and monitor the strategy closely. Users are solely responsible for their trading decisions.