THREAD 🧵- Trading Strategies

Here I discuss couple of setups which has an edge in the markets. This was evident during data analysis.

1. To start with I would say that making money is impossible in the markets if you don’t have set of rules OR you are not confident on the setup. Either way you will fail
2. Some general rules one should follow -

- No more than 1% of risk in one trade
- Max loss of 2% per day
- Keep your risk constant every day. Change your position size accordingly
- Focus on Risk reward as accuracy is not in our hands
3. Setup - 1
ORB - You might be bored of seeing ORB in the list but this is still one of the best setups specially on INDEX (Nifty and Bank nifty) as they are trending in nature.
3. continued

ORB works best in these 2 cases -
> Gap days
> Entry is made quickly after marking the levels. In other words, Quicker the entry, better it is
> ADX(14) > 30 & ADX(5) < 15 - If volatility is more on bigger TF and less on small TF, it gives you a better edge
4. General points regarding ORB

ORB can be of 5, 15, 30, 1 hour or even more than that. If the entry is made quickly after ascertaining the levels, it is more profitable as it shows that market is trending today. You can diversify with different ORB timings
5. SL can be opposite end of the bar. If SL is big, reduce the number of lots such that your risk in terms of amount is same always

Profit booking can be booking half quantity on 1:1 and trail rest.

If mastered, ORB setup alone is enough to give you lots of profit in market.
6. Setup - 2

VWAP Touch - How many times have we seen in a trending market where price retraces to VWAP and continues in the same direction. The best part of this setup is a very attractive risk reward this setup gives.
6. continued

Setup - 2
At around 10-10:30 check if more than 90% of the the candles since open are above VWAP (This shows market is very bullish today). Now be ready to buy when prices retraces to VWAP. You can surely change the timing and give a space for candle below VWAP too
https://t.co/mzNgnUC8Fi
So this was it from my side. Hopefully, this thread helped !🧵

Follow me for more useful threads on the stock market trading.

RT the tweet below to share this thread with your audience

More from All

You May Also Like