Probably the best Intraday strategy for Index Futures & Options

What is the strategy's ROI per week in your paper trading ?

  • <1%

    Votes: 5 35.7%

  • 1% to 2%

    Votes: 1 7.1%

  • 2% to 3%

    Votes: 1 7.1%

  • 3% to 5%

    Votes: 1 7.1%

  • 5% to 7%

    Votes: 2 14.3%

  • 7% to 10%

    Votes: 1 7.1%

  • Above 10%

    Votes: 3 21.4%
  • Total voters
    14
R

rajesheck

Hey All


Here is an emotions-free intraday strategy for Multi-Sector Index Futures/Options. Probably this may be the best intraday strategy for any Index futures/options, any exchange and any country.


Who can use this strategy ?
1. This strategy is only for multi-sector Index like Nasdaq, FTSE100, etc.
2. This strategy not suitable for single-sector Index (Bank, IT, etc.,)
3. Positional traders can use this strategy to create a hybrid styled positional strategy.


THE BIG EDGE : 4D trading strategy for any Multi-Sector Index, any Exchange, any Country:
The 4 dimensions are:
1. Price Action
2. Volume Action
3. Time Frame
4. Demand Level

Volume action is in-built inside demand level.
Time frame : This strategy works best when signal is generated in first 40 minutes of the day with 5 minutes candle chart.


Probility VS Prediction
This strategy virtually eliminates common prediction elements like pivot points from previous day and identifies very high probability areas in intraday trading. Because in Intraday "Yesterday Does Not Exist" !


SIMPLEX IS BESTEX APPROACH :

Two staged ENTRY:
1. Intraday noise removal (Price Action)
2. Trend identification (Demand Level)

Two types of EXIT:
1. Profit booking (Demand Level)
2. Stop loss (Price Action)

What about RR Ratio and Success rate?
Though the risk reward ratio cannot be calculated, due to the open ended target, the radical and realistic approach in the strategy assures very high success rate and open ended target can produce profits anywhere from 5% per day.


THE STRATEGY :

Important :
1. Set 5 minutes chart.
2. Works best when entered in first 40 minutes with volatility not more than 0.5% from open.

Half signal (Noise filtering) : First candle with high-low<=X points (0.08%)

Full signal (Trend identification) : 20+% difference between TBQ & TSQ
(TBQ - Total Buy-Bid Qty / TSQ Total Sell-Bid Qty, (Pending Limit orders))

Bullish Entry : TBQ (20+%) > TSQ
Profit booking : TBQ <= TSQ when LTP is near day's HIGH
Stop loss : X points from ENTRY (0.25%)

Bearish Entry : TSQ (20+%) > TBQ
Profit booking : TSQ <= TBQ when LTP is near day's LOW
Stop loss : X points from ENTRY(0.25%)

Feel free to use this strategy to paper trade in your favorite Multi-Sector Index and share your experience here with the community.

All The Very Best !
 
This is the first professional "Open Source" strategy available on internet i guess. !
(Note : Softwares like Linux and Android are Open Source...free to the world)
 
rajesheck said:
This is the first professional "Open Source" strategy available on internet i guess. !
(Note : Softwares like Linux and Android are Open Source...free to the world)
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In an efficient market (like the US equities one) the best that any systematic strategy hopes to achieve is 50% success rate.

I can suggest a simpler one that can compete with any other strategy out in the open:

-Flip a coin
- heads, go long
- tails, go short
 
rajesheck said:
THE BIG EDGE : Apply some adhesive on the tail side of the coin. Simple !
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Good one,

But I'm being serious, back in the day (decades ago) I wrote a market simulator using GBM and prevalent realized volatility values to simulate 1 minute intraday moves. Then I applied my complex algorithm (coin toss) with a few more parameters (like closing and stop criteria) and I watched my system achieve returns in excess of 40% some simulated days, other days I got like 120% return!

Of course over a full 1000 simulated days run, I was at break even :)

But I always wondered if you could do something like that, get a few series of winners and then retire
 
Any industry needs continuous research for a sustained growth. So is intraday trading. My current study says :
1. Morning session in intraday is defining moments
2. Multi-sector Index is comparably more predictable
3. Entering within initial volatility and within 40 minutes is safest bet
4. Open target is more effective
5. Filtering intraday noises is essential

Thats why i say this strategy is probably the best of its class!
 
rajesheck said:
Any industry needs continuous research for a sustained growth. So is intraday trading. My current study says :
1. Morning session in intraday is defining moments
2. Multi-sector Index is comparably more predictable
3. Entering within initial volatility and within 40 minutes is safest bet
4. Open target is more effective
5. Filtering intraday noises is essential

Thats why i say this strategy is probably the best of its class!
More...

Just do basic back testing and/or simulation, and I'm pretty sure that in a sufficient long period this thing will give you 50% success rate like any all of the other systematic approaches out there. There is no edge in price prediction, it is a sad but true reality of efficient markets
 
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