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Strategies Rules

The document outlines three trading strategies for the Nifty index: a Time-Based Option Buying Strategy focusing on market movements during specific timeframes, a Sideways Market Strategy aimed at profiting in low-volatility conditions, and a Trending Market Strategy utilizing technical indicators to identify trends. Each strategy includes specific rules regarding market conditions, VIX levels, and candle movements. Various sub-strategies and execution rules are also provided to enhance trading effectiveness.

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79 views10 pages

Strategies Rules

The document outlines three trading strategies for the Nifty index: a Time-Based Option Buying Strategy focusing on market movements during specific timeframes, a Sideways Market Strategy aimed at profiting in low-volatility conditions, and a Trending Market Strategy utilizing technical indicators to identify trends. Each strategy includes specific rules regarding market conditions, VIX levels, and candle movements. Various sub-strategies and execution rules are also provided to enhance trading effectiveness.

Uploaded by

ankuryadav4458t
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Strategy 1: Time-Based Option Buying Strategy (Nifty)

Objective:

To capitalize on market movements during specific timeframes.

Rules:

1. Previous Day's Candle Body:


o The body of the previous day's candle must exceed 300 points to indicate strong market movement.
2. Timeframe:
o Use a 5-minute chart to monitor the market.
o Look for a sideways or range-bound market from 1:15 PM to 3:30 PM (sideways range of approximately
60 points).
o If not sideways, observe market trends.
3. Gap-Up or Gap-Down Movement:
o Check for a 100–150 point gap-up or gap-down.
4. India VIX:
o The VIX (Volatility Index) should be greater than 1.5% to indicate a volatile environment suitable for this
strategy.

Strategies to Be Followed:

1. Rifle Nifty Time-Based (Rule-Based): Strictly adheres to the above rules.


2. Gamma Blast: Does not depend on the above rules and can be used in any condition.
3. Sniper Nifty Time-Based (Rule-Based): Can be used daily by adhering to the rules.
Strategy 2: Sideways Market Strategy
Objective:

To profit in low-volatility, sideways-moving markets.

Rules:

1. VIX Movement:
o VIX movement should be high to low and less (<=) than 1.5%.
2. Previous Day Candle Body:
o Should not exceed 300 points to ensure a relatively calm market.
3. Gap-Up or Gap-Down:
o Gap movement should be between 70–100 points.

Strategies to Be Followed:
1. Nifty ITM Sideways + Nifty Hedge ( Margin Required – 1 Lakh).
2. BNF Straddle Sideways + BNF Hedge. ( Margin Required – 1 Lakh).
3. Nifty OTM Sideways + Nifty Hedge. ( Margin Required – 1 Lakh).
4. Nifty Aggressive Sideways+ Nifty Hedge. ( Margin Required – 1 Lakh).
5. Daily Nifty Best + Nifty Hedge. (Margin Required – 1 Lakh).
Strategy 3: Trending Market Strategy (Indicator-Based)
Objective:

To identify and capitalize on trending market conditions using technical indicators.

Rules:

1. Timeframe:
o For Index: Use 1-minute and 5-minute charts.
o For Stocks: Use 5-minute and 15-minute charts.
2. Indicators Used:
o Moving Average (MA)
o VWAP (Volume Weighted Average Price)
o MACD (Moving Average Convergence Divergence)
o RSI (Relative Strength Index)
o Super Trend
o Bollinger Bands

Super Trend Example

• Transaction Type:
o Both long and short positions can be initiated.
• Long Entry Condition:
o A candle's closing price crosses above the Super Trend indicator.
• Short Entry Condition:
o A candle's closing price crosses below the Super Trend indicator.

Option Buying (CE/PE) Rules

1. Assets: Applicable to Nifty, stocks, and futures on a daily chart.


2. Patterns to Identify:
o Big Green Candle / Big Red Candle:
§ The candle should have a strong body and not a large wick.
o Hammer Up/Down:
§ The candle should not have a large wick.
3. Nifty-Specific Rule:
o Candle movement should not exceed 300 points.
o Look for support/resistance levels where the candle is forming the setup.

Execution Rules:

1. If the candle moves upward, simultaneously initiate a call.


2. If the candle moves downward, simultaneously initiate a put.

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