Strategy description

Strategy Overview

This intraday momentum trading strategy uses price action and volume-based indicators to trade NIFTY50 options on 1-minute and 2-minute charts.

Instrument & Timeframe

1. Instrument: NIFTY50 Options Spot
2. 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 going live.
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 satability.
4. Monitor performance regularly, log key observations, and adhere to backtested rules—no emotional decisions.

Entry Signals

1. Generated on 2-minute and 1-minute charts when momentum and volume thresholds are met.

Risk Management

1. Built-in stop losses manage small reversals and sharp trend changes. Dynamic exit rules adapt to live price action and volume. All positions are closed before market close to avoid overnight risk.

Capital Requirements

1. Minimum capital varies with the ATM spot premium, typically ₹5,000–₹25,000 per lot. Maintain sufficient margin (and an additional buffer) to avoid shortfall errors.

Important Notes

1. Intraday only—no overnight positions carried.
2. Adapts to trending and range-bound conditions via combined price action and volume signals.
3. No charges for paper trading—test without cost.

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. Always paper-trade first, maintain extra margin, and monitor the strategy closely. Users are solely responsible for their trading decisions.