Trading strategies

Stock futures – Trading strategy

Today we are going to brief about a stock futures trading strategy that can be employed by you as an BTST/STBT trading strategy.

This strategy is based on the data from the OIAnalytics website and can also be referred to in our live slack alerts.

Stocks to trade on : Stocks which are filtered by our live slack alerts at 3:20 PM everyday.
Strategy :

  • First thing is out of the alerts select stocks from fresh buildups(new business) and ignore unwinding(old business).
  • If there is a long buildup and short buildup then take one long and one short otherwise prefer one stock which has highest OI buildup in % when compared to others. Entry price to be almost or around the entry price listed in that interval as entry price.
  • Exit strategy : Book when stock is trading in profit of > 0.75% from your entry and risk wise Have a defined risk (absolute amount) stop loss 15-20k is ideal owing to opening volatility.

Rationale to select this particular interval: Whoever is taking overnight positions in high quantities just before the market close have a higher chance of being smart money.
Disclaimer: Strategy shared for educational purpose and not to be considered as trading advise, Profit/loss is completely your responsibility.
Caution: If your capital is < 5lac, Prefer not to chose this strategy as risk is more than 4% of capital.

Disclaimer: We are not a SEBI registered Investment advisor and recommend to excercise your own due diligence before taking any trades.

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