Let's Understand how to Trade

For any system you are going to trade in your life, these below four points should be crystal and clearly written on your trading system development process

1. What to BUY/SELL 2. When to BUY 3. How much to BUY 4. When to SELL

WHOLE STRATEGY FRAMEWORK

1. What to Buy/Sell - Use pullback only on Bank Nifty

Pullback Scalping Strategy Rules and Guidelines

Scalping - Trade only on Bank Nifty

1.  Choose a 15-minute candle for Call options (CE) and 5/15-minute candles for Put options (PE).

2. Consider engaging in both Sell Call and Sell Put trades, recognizing the necessity of a substantial margin. Despite the high margin requirement, selling either a call or a put inherently provides a winning probability of 66.66%.

A. When you sell CE/PE: (Winning probability – 66.66%)

     (i). If the market moves in your direction, you will profit (Winning Probability – 33.3%).

     (ii). If the market goes sideways/slowly, you will earn a premium, leading to profit (Winning Probability – 33.33%).

     (iii). The only condition for loss is if your trade goes against you (Losing Probability – 33.33%).

B. When you buy CE/PE: (Losing probability – 66.66%)

     (i). If the market goes sideways/slowly, you will lose premium, resulting in a loss (Losing Probability – 33.33%).

     (ii). If your trade goes against you, you will face a loss (Losing Probability – 33.33%).

     (iii). The only condition for profit is if the market moves in your direction, yielding a profit (Winning Probability – 33.3%).

3. Time your trades during the initial hour (09:30 to 10:30) and the closing half-hour (01:30 to 03:00) of market activity.

4. Adhere to a maximum of two stop-loss orders per day.

5. In an upward-trending market, monitor 15-minute green candles. Wait for the candle to close near its high. After a substantial green candle, verify that the subsequent candle does not breach the high of the preceding green candle. Look for a pullback in the following candle, and when the price surpasses the high of the initial green candle, consider entering the trade.

6. In a downward-trending market, observe 15-minute red candles. Wait for the candle to close near its low. After a significant red candle, confirm that the subsequent candle does not exceed the high of the preceding red candle. Anticipate a pullback in the next candle, and upon the price breaking below the low of the initial red candle, consider entering the trade.

7. Maintain a minimum Risk-to-Reward (R:R) ratio of 1:1 to safeguard your trades and optimize potential returns.

8. Max 50 Points Stoploss.

9. Choose a strike price between 100 to 200.

Note :- For beginners, start scalping trades with 1 lot. Practice this pullback strategy in at least 100 to 200 trades. After completing 100/200 trades, diligently maintain your trading journal. List instances when the strategy worked and when it did not, and also make note of your mistakes. Only if you are consistently profitable, consider gradually increasing your lots, and focus on mastering one rather than many.

WATCH LIVE PULLBACK TRADING VIDEO

BANKNIFTY - (VIEW - DOWNSIDE) - (SOLD CE)

WATCH LIVE PULLBACK TRADING VIDEO

NIFTY - (VIEW - UPSIDE) - (SOLD PE)

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