Current 5 mts Trading Strategy

Chart and Trade Timings:

 Track 5 mins chart

 Trade timing 10.00 am -3.00 pm

Option Strike Price Selection:

 Option strike price selection time is 9.45 am

 Option strike price is selected based on Nifty near month futures price, for May – Nifty
May Futures should be considered
 Strike Price = Nifty May Futures CMP – 200 points
 Put Option Should be below 200 Points from CMP
 Call Option Should be Above 200 Points from CMP
 Near week expiry should be considered for trade

For example: If, Nifty May Futures Price = 8800 at 9.45 Am, then the options selected for the trades are
– 8600 PE and 9000 CE

Trading Methodology for one lot –

 Indicators followed – SMI and 9 Period moving average

 Chart to be followed – Nifty Futures Chart
 Pivot Points To Be Considered – Always make note of support resistance mentioned in the
money control website. This will help to take decisions when the prices are approaching support
resistance zone in addition to the indicators
 Step 1: Wait for SMI to cross over in Nifty Futures Chart ; SMI set up- 10,3,3,10
 In case of, Bullish Cross Over – The focus is on CE
 In case of, Bearish Cross Over – The focus is on PE
 Step 2: Post Bullish/Bearish crossover in the futures chart, open the respective options chart
o Call Options chart for bullish crossover
o Put Options chart for bearish cross over
o Wait for price to close above/below the 9-period moving average in the put/call options
chart.
 Step 3: Entry point
o Enter Put Option in case of bearish cross over + price close below moving average
o Enter Call Option in case of bullish cross over + Price close above moving average
 Step 4: Stop Loss
o The stop loss should be the low price point of the candle prior to candle crossed the
moving average
 Step 5: Profit Booking
o 2.5 points above the entry point as sell price
o Spindle top candle stick patter formation above/ on the EMA means, the trend is over
and it is time to exit (refer spindle top pattern in the below image
o Do not wait for more than 3 candles
Do’s and Don’ts –

 Follow the strict stop loss and strict 2.5 points profit booking price for first 3 months
 Avoid near strike price options
 Wait for cross over and price settle (above/below) to complete. Don’t be in hurry, let both the
indicator provide the trade signal
 On in average, there is a chance for 3-4 trades in a day based on the cross over strategy. Each
trade can provide 2.5 points profit without SL trigger. i.e., 8-10 points possibility = INR 600-800
Gross Profit/Day/lot. The capital required per trade 6000-10000 INR.
 Provide, 30-45 mts gap between trades. Do not enter trades back to back
 Wait in patience, this trade set up happens even in the worst and best market
 No intra-day trade in expiry day, i.e. Thursday
 This trade setup can provide opportunity for huge profits of 10-30 points per lot. But it is
advisable to focus on 2.5 points per lot for the first 3 months
 The reverse positions will also be profitable and can be entered based on the maturity of the
trader. This strategy can be avoided for the beginners. For example,
o Selling CMP Call options during => bearish cross over + price close below moving
average
o Selling CMP Put Options during => bullish cross over + Price close above moving average

18th May, was a highly volatile day, Nifty lost 350 Points. Yet, there were four trades based on
the strategy

Bearish Cross Over Bearish Cross Over

Bullish Cross Over

Bullish Cross Over
Spindle top formation after entry

Spindle top formation after entry .

This can be green or red