created : 2 weeks ago| | live deployment: 1
Strategy description
This strategy uses Price Action to look for opportunities for trading intraday in Stock Options. There could be multiple orders triggered during the day but, only one order is triggered for every symbol. This strategy scans for opportunities on a 5-minute time frame on highly liquid Stock Futures to take buying positions in the respective ATM strike contracts. Leveraging the power of Price Action and executing it algorithmically is the edge of this strategy. Average True Range is the only Indicator used; it is used to calculate optimum Targets and Stop Loss.
Options buying is the approach taken in this strategy to make the best use of the momentum because trades once taken are usually exited within 5 candles away. Drawdowns are contained by using a strict Stop loss and Targets are proportionately programmed.
A list of Highly liquid stocks is prepared daily for trading for the next trading day to ensure that positions are entered and exited with ease.
It is recommended to use a minimum of ₹ 5,00,000 to ensure that there are no missed opportunities, and that trading is smooth. If there is a shortage of funds in your Trading account, the strategy could get blocked and squaring off of positions will need to be done manually. Even with enough and more precautions it is recommended that positions are monitored closely to ensure that there are no hiccups during the trading session.
New positions are taken after 9:50 AM are squared off before 3:15 PM daily and positions are of NRML and Market type.
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