SMA Strategy: Bank Nifty, Nifty, and FinNifty
Overview
The SMA Strategy is based on the 30-period Simple Moving Average (SMA) for buy and sell confirmation. This strategy aims to identify buying opportunities when the market crosses above the 30-period SMA and 20-20 SMA, indicating potential bullish momentum, and selling opportunities when the market crosses below the 30-period SMA, signaling potential bearish momentum.
This strategy is designed to capture trend reversals or continuations by using the 30-period SMA as dynamic support or resistance levels. It is suitable for traders looking to trade trend-following strategies based on moving average crossovers.
The SMA strategy has predefined targets and stop-loss levels based on the market's volatility and range, ensuring clear risk management parameters for trades.
Symbol Meanings on the Chart:
TP: Target
SL: Stop Loss
LE: Long Entry (Call Option Buy)
SE: Short Entry (Put Option Buy)
DSE: Call Option Exit and simultaneously Put Option Buy
DLE: Put Option Exit and simultaneously Call Option Buy
Strategy Details
Time Frames & Parameters:
1. BANK NIFTY:
Time Frame: 45 minutes
Trading Hours: 10:00 AM to 3:00 PM
Range: 1600 points
Stop Loss: 100 points
Target: 100 points
2. NIFTY:
Time Frame: 30 minutes
Trading Hours: 9:30 AM to 3:00 PM
Range: 700 points
Stop Loss: 50 points
Target: 50 points
3. FINNIFTY:
Time Frame: 30 minutes
Trading Hours: 9:30 AM to 3:00 PM
Range: 700 points
Stop Loss: 50 points
Target: 50 points
Buy Logic (Long Position)
Bank Nifty: When the market crosses above the 30-period SMA indicating bullish momentum.
Nifty/FinNifty: When the market crosses above the 20-20 SMA indicating bullish momentum.
After taking the entry, predefined targets and stop-loss levels are set based on market volatility and range.
The strategy works on 45-minute time frames for Bank Nifty, and 30-minute for Nifty and FinNifty.
The number of signals generated per script depends on market movements and conditions.
Sell Logic (Short Position)
Bank Nifty: When the market crosses below the 30-period SMA signaling bearish momentum.
Nifty/FinNifty: When the market crosses below the 20-20 SMA signaling bearish momentum.
After taking the entry, predefined targets and stop-loss levels are set based on market volatility and range.
The strategy works on 45-minute time frames for Bank Nifty, and 30-minute for Nifty and FinNifty.
The number of signals generated per script depends on market movements and conditions.
Key Points to Remember:
Capital Management:
Maximum Capital Usage: Do not use more than 50% of your total capital at any time.
Consistency:
Work daily with linear discipline. Don’t trade 1 lot today and suddenly trade 4-5 lots tomorrow. Maintain a steady approach.
Market Conditions:
This strategy works best in trend-following markets.
In sideways markets, the strategy may not perform well, and it may result in no profit/no loss.
The strategy is effective during rallies, whether they are buying or selling rallies.
Risk Management:
Always use the predefined stop-loss and target levels to manage risks effectively.
Ensure you’re comfortable with the risk before executing trades.
Customization: You can customize the parameter settings according to your risk profile and capital.
Disclaimer:
Market Risk: All strategies are subject to market risk.
No guaranteed returns: We do not promise or guarantee returns. Results depend on market conditions.
Backtest Reports: Backtest results do not guarantee future or fixed returns. Actual performance may vary depending on market movements.
Trading Risks: Trading in Index Options is inherently high-risk. Always trade within your risk tolerance and avoid excessive risk.
Contact Information:
For more details or personalized assistance, feel free to reach out:
Email: brainautotech1902@gmail.com
WhatsApp: +91 6264687918 (Vivek)
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