Thread by @NiftySir

Friends, sharing a trading strategy which I have started trading live from Friday... in addition to my existing strategies (long-term EMA, short-term MAST)... have allocated a separate sum of 1 Cr for this strategy...the trading plan/ rules of this new strategy are as below (1/n)

(a) Every day, buy 4 lots of #nifty FUT
(b) At mkt opening every day, keep the buy order at 1 point below yesterday's close
(c) In case the order doesn't get executed till 3:25pm, convert into a market order and buy at mkt price (2/n)

(d) As soon as your daily buy order is executed, sell next month's OTM CE (same 4 lot qty) which should be minimum 600 points away from current #nifty FUT buying price
(e) So basically, every day you buy 4 lots of FUT and sell 4 lots of OTM CE (next month...600 points away) (3/n)

(f) The fixed profit target for every #nifty FUT buy order is 104 points...why 104??... basically, 100 points profit + 4 points to take care of brokerage/ taxes, etc
(g) For OTM CE, no profit target... expectation is that it will expire worthless...in fact, that's the (4/n)

reason why we choose a CE which is 600 points away...
(h) Now, very important condition... the daily FUT buying should be done only if #nifty is trading above the SuperTrend (multiple 1, period 10)
(i) if #nifty gives a close below the ST, then stop buying FUT from next day (5/n)

(j) When I say stop buying, I mean, we postpone our buying till such time the #nifty doesn't give a DAILY close above the ST... so, for eg, if #nifty remains below the ST for 10 days, then on 11th day, we directly buy 40 lots (4 lots * 10 days) at the close of 11th day (6/n)

(k) After the 11th day (per example above), the daily buying can resume...
(l) The profit target remains 104 points, irrespective of whether you buy daily after many days... (7/n)

(m) Very important point... even when #nifty is below ST and daily FUT buying is postponed... the daily OTM CE selling at 600 points distance will continue... based on daily nifty close...(8/n)

Basically the objective is to earn ~40k per day...how?...30k from FUT...300 qty * 100 points + ~10k per day from OTM CE selling...

Position sizing = 4 lots per day for a capital of 1Cr... once profit becomes 25L, increase to 5 lots per day...at the rate of 40k per day (9/10)

should take about 60-65 working days to achieve that profit milestone...

All suggestions, concerns, issues, criticisms most welcome 🙏

All live trading data uploaded EOD in my trade file (refer my pinned tweet)... look at the tab titled “F-SIP”

2 days completed... #nifty has given a close below ST ... so no buying from tomorrow till it is back above ST... OTM CE selling to continue...