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INDEX
Sl. Page
Details
No. No.

1 Disclaimer 2

2 Author Note 2

3 Strategies: 3 – 14

4 Strategy No. – I : Expiry Strategy (Game Changer) 4–6

5 Strategy No. – II : Bollinger Band Secret Strategy 7–9

6 Strategy No. – III : Stop Loss hunting Call buy strategy 10

7 Strategy No. – IV : Stop Loss hunting Put buy strategy 11

8 Strategy No. – V : Strategy for Gap down market opening 12

9 Strategy No. – VI : Strategy for Gap up market opening 13 – 14

10 Money Management 15

11 Psychology 16

12 Position Sizing 17

13 21 Candlestick secret strategy 18

14 Trading Journal Format 19

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➢ Disclaimer:
We are not SEBI registered. Trading in financial markets carries a high level of risk
and may not be suitable for all investors. The strategies outlined in this book are
for informational and educational purposes only and are not intended as investment
advice. The author and publisher of this book are not responsible for any financial
losses or damages that may arise from the use of these strategies. It is important to
carefully consider your investment objectives, risk tolerance, and financial situation
before making any investment decisions. Past performance is not indicative of future
results. Before trading, please ensure you have a complete understanding of the
risks involved and seek independent advice if necessary.

➢ Author Note:
Although trading on financial markets carries a significant risk, it can also be a
highly rewarding activity. This book's objective is to give readers a thorough
understanding of numerous trading strategies that may be applied in various
market environments. It is crucial to remember that the methods described in this
book do not ensure success, and there is always a chance of suffering losses.
A disciplined and knowledgeable approach to risk management is crucial if you want
to reduce the hazards involved with trading. It is essential to have a solid
understanding of the market conditions and the variables that affect price changes
as well as the technical and fundamental analysis tools that are used to assess and
interpret market data.
This book's information is not intended to be taken as investment advice or as a
suggestion to trade any specific financial instrument. The tactics described in this
book should only be utilised in conjunction with a thorough risk management
strategy and for instructional purposes. When using the information in this book,
Profit Climax disclaims all responsibility and liability for any monetary losses or
damages that may arise.
Readers are strongly encouraged to seek the advice of a licenced financial advisor
and carefully evaluate their risk appetite, investment goals, and financial status
before making any financial commitments in the markets. Additionally, it's critical
to remember that past results are not necessarily indicative of future outcomes and
that there are no guarantees of success in the financial markets. However, by
approaching trading with discipline and knowledge, investors can effectively
manage their risks and improve their chances of succeeding financially.

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➢ Strategies:
Although trading on financial markets can be a highly lucrative activity, success
requires a focused and informed approach. Trading decisions are based on a variety
of different tactics that traders employ while analysing market data. Every approach
has a set of distinctive qualities and can be successful depending on the market.
Some of the most common trading strategies include trend following, mean
reversion, breakout trading, and momentum trading. Trend following strategies aim
to identify and capitalize on market trends, while mean reversion strategies look for
opportunities to buy or sell assets when they deviate from their long-term average
prices. Breakout trading strategies focus on identifying key levels of support and
resistance, while momentum trading strategies aim to capture profits from strong
price movements.
In this book, we will explore different trading strategies and how they can be used
to achieve trading objectives. We will discuss the strengths and weaknesses of each
strategy, how to implement them, and how to manage risks associated with each
approach. We will also examine how to use technical and fundamental analysis tools
in conjunction with each strategy.
Whether you are a novice or an experienced trader, this book will provide you with
valuable insights into the different trading strategies that can be used in financial
markets. By developing a comprehensive understanding of these strategies and
their applications, traders can make informed trading decisions and achieve their
financial goals. Different strategies are discussed in the following chapters –

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❖ Strategy No. – I (Expiry Strategy):
This strategy is used only in expiry day to catch big movements in market, zero to
hero move. You can also use this strategy on other days by properly maintaining
stoploss. Here are some rules given to execute the above said strategy -
Applications: Bank Nifty
Time frame: 5 mins
Rule No. 1
Mark high of bank nifty up to 10 AM

Rule No. 2
We have observed ‘M’ pattern formations that occur either above the 10
AM high point or below it, but at least touches with the 10 AM high point

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 Rule No. 3
Remember, in the ‘M’ pattern, the high of the second leg should not break
the high of the first leg

Rule No. 4
If we observe this type of pattern, it can be considered as our confirmation
pattern
Rule No. 5
After breaking the neckline of the ‘M’ pattern, we can enter a sell trade or
buy a put option, with our stop loss above the high of the ‘M’ pattern

Rule No. 6
Stop loss = High of ‘M’ pattern first leg
Target = 150 to 200 Points or Day Low (Maintain Trailing Stoploss to gain
more profit)
Precautions: There is no strategy that can guarantee overnight riches, and it's crucial to
trade with discipline and proper money management. Before jumping into any strategy, it's
essential to thoroughly back test it and paper trade it at least 50 times. Once you feel

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comfortable with the results, you can start forward testing it with just one lot for at least 20
trades. If you continue to see a profit after 20 trades, you can gradually increase your
position size. However, it's important to be cautious and not jump into a direct 10 lots.
Remember, patience and consistency are key to successful trading, and it's essential to
manage risk appropriately to protect your capital.

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❖ Strategy No. – II (Bollinger Band Secret Strategy):
Indicator: Bollinger Band with Default Setting (Length 20, Stand Dv – 2.0)
Applications: For All Stocks and Indices.
Time frame: 5 mins
Rule No. 1
First Plot Bollinger Band on any trading Software

Rule No. 2
Alert candle: If a bearish candle closes below the Lower Bollinger Band, it
is an alert candle.

Rule No. 3
You can see in the above image that a bearish candle has formed and
closed below the lower Bollinger Band, which is our first alert candle.
Additionally, another bearish candle has formed and closed below the
lower Bollinger Band, which is our second alert candle. Alert candles may
be formed once or multiple times

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 Rule No. 4
Confirmation Candle: After the formation of an alert candles, if any bullish
candle is formed and closes above the lower Bollinger Band, this is our
confirmation candle.

You can see in the above image that a bullish candle has formed and closed above the lower
Bollinger Band, which is our confirmation candle.
Rule No. 5
Entry rule: If the high of the confirmation candle breaks, we immediate
enter a buy-side trade

Note: You must add some buffer points above the candle high.

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 Rule No. 7
Target 1: If any candle touches upper Bollinger band we exit from trade.

When the candle touches the upper Bollinger Band, we exit our trade and book our profit.
Target 2: You can ride your profit with a trailing stop loss at the cost-to-
cost level for a bigger target.
Stop Loss: Low of Confirmation Candle + some buffer point (The buffer point depends on
the stock price and may vary from ₹ 0.25 to ₹ 7.00)
Notes:
i) It is important to use a buffer on entry and stop loss.
ii) If the confirmation candle is too big or it touches the middle Bollinger Band, it
is best to avoid taking the trade because the risk to reward ratio is very poor.
iii) In the trading universe, there is no holy grail strategy. This strategy is for
educational purposes only. Always do your own analysis before trading.
iv) Every evergreen strategy is validated for a certain period of time, including this
strategy. Our main motto is to teach you how to create your own strategy.
v) If you beginners do paper trade only. We will more discuss about money
management and psychology part later.
vi) Don’t borrow money for trading it will take your life in misery.
vii) Keep faith on yourself and practice makes you a better and profitable trader.

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❖ Strategy No. – III (Stop Loss hunting Call buy strategy):
Step 1
Wait for first 5-minute (9:15) candle to form and observe it.
Step 2
Find A support Level below first 5 min candle and draw that support Level

Step 3
If the first five candle Low breakout alert yourself.
Step 4
Wait for a doji or hammer candle to appear within 9:45 of the trading day
just certain point Below or Near the Support level, this hammer or doji
candle is a confirmation candle.
Step 5
Once the High of the confirmation candle is broken, you can initiate a Call
Buy position. Set your stop-loss order at the Low of doji or hammer
Candle
Step 6
Your target can be either 1:2 or High of First 5 Min candle

Psychology behind this strategy:

In this trading strategy, the goal is to hunt for the stop-loss orders of two types of
retail traders. The first type is those who buy at the opening range breakdown (i.e.,
the first 5-minute candle breakdown), and the second type is those who sell when
there is a Support breakout. By trapping the stop-loss orders of these traders, the
smart money can take advantage of the market movements and earn profits. it's
essential to follow the smart money rather than going against them However, it's
important to note that this type of trading strategy carries risks, and it's crucial to
manage risk effectively.

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❖ Strategy No. – IV (Stop Loss hunting Put buy strategy):
Step 1
Wait for first 5-minute (9:15) candle to form and observe it.
Step 2
Find A Resistance Level above first 5 min candle and draw that Support
Level

Step 3
If the first five candle high breakout alert yourself.
Step 4
Wait for a doji or inverted hammer candle to appear within 9:45 of the
trading day above or near the resistance level.
Step 5
Once the low of the confirmation candle is broken, you can Buy Put
Option. Set your stop-loss order at the high of the doji or inverted Hammer
candle.
Step 6
Your target can be either 1:2 or Low of First 5 Min candle

Psychology behind this strategy:

The psychology of a retail trader is often to buy when there is a resistance breakout.
However, the smart money may sell at that point and hunt for the stop-loss orders
of retail traders.
In this trading strategy, the goal is to hunt for the stop-loss orders of two types of
retail traders. The first type is those who buy at the opening range breakout (i.e.,
the first 5-minute candle breakout), and the second type is those who buy when
there is a resistance breakout. By trapping the stop-loss orders of these traders, the
smart money can take advantage of the market movements and earn profits. it's
essential to follow the smart money rather than going against them However, it's
important to note that this type of trading strategy carries risks, and it's crucial to
manage risk effectively.

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❖ Strategy No. – V (Strategy for Gap down market opening):
A gap down market opening occurs when the price of a security opens lower than
the previous day's closing price, creating a "gap" on the price chart. This can happen
for a variety of reasons, including negative news announcements, weak earnings
reports, or market speculation.
Gap down openings can be challenging for traders as they indicate a sharp decline
in market sentiment and potential losses in a short period. However, they can also
present opportunities for traders who are skilled in short selling or trading on
bearish market conditions. It is important for traders to consider the underlying
factors driving the gap down and to use appropriate risk management strategies to
protect their investments.
Applications: Bank Nifty
Time frame: 15 mins
Call Buying strategies:

Step 1
In this situation, we can see that the market has been showing a move in
either direction, either up or down, for the past two days.
Step 2
If the market is moving upwards, it may be possible to create a call
position.

Step 3
To create a call position, wait for the market to break the high of the first
15-minute candle.
Step 4
If a call position is created, set the target between 120 to 150 points. You
can gain more profit with trailing stop loss.
Step 5
Place a stop-loss between 60 to 70 points.

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❖ Strategy No. – VI (Strategy for Gap up market opening):
A gap up market opening occurs when the price of a security opens higher than the
previous day's closing price, creating a "gap" on the price chart. This can happen
for a variety of reasons, including positive news announcements, strong earnings
reports, or market speculation.
Gap up openings can be exciting for traders, as they offer the potential for significant
gains in a short period. However, they can also be risky, as the market may quickly
reverse course, filling the gap and causing losses for traders who bought in at the
high opening price. As such, it is important for traders to carefully consider the
underlying factors driving the gap up and to use appropriate risk management
strategies to protect their investments. Overall, gap up market openings are an
important phenomenon in trading and offer both opportunities and challenges for
traders looking to profit from market movements.
Applications: Bank Nifty
Time frame: 15 mins
Put Buying strategies:

Step 1
In the current situation, we have observed that the market has been
moving in a particular direction for the past two days, either up or down.
Step 2
If the market is moving up, then it is likely to break the low of the first
candle, and we can take a put position once it breaks.

Step 3
It is preferable to look for a shooting star candlestick pattern or a red
candlestick pattern in the first candle.
Step 4
In this strategy, we can keep our target at the previous day's closing price
and set our stop-loss at the high of the first candle.

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Notes:
i) It is important to use a buffer on entry and stop loss.
ii) In the trading universe, there is no holy grail strategy. This strategy is for
educational purposes only. Always do your own analysis before trading.
iii) Every evergreen strategy is validated for a certain period of time, including this
strategy. Our main motto is to teach you how to create your own strategy.
iv) If you beginners do paper trade only. We will more discuss about money
management and psychology part later.
v) Don’t borrow money for trading it will take your life in misery.
vi) Keep faith on yourself and practice makes you a better and profitable trader.

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➢ Money Management:
Trading in financial markets can be a profitable venture, but it is essential to
remember that trading is also inherently risky. To minimize the risks associated
with trading, it is crucial to implement a sound money management strategy.
Money management refers to the process of managing trading capital in a way that
maximizes profits while minimizing potential losses. A solid money management
strategy can help traders remain disciplined and avoid emotional decision-making
that can lead to substantial losses.
One of the most important aspects of money management in trading is determining
an appropriate risk-to-reward ratio. This involves identifying the amount of risk that
can be taken on a particular trade in relation to the potential reward. A common
rule of thumb is to risk no more than 2% of your trading account on any single
trade.
Another key component of money management is position sizing. This involves
determining the appropriate amount of capital to allocate to a particular trade based
on its level of risk and the trader's overall risk tolerance. Position sizing helps traders
to avoid overexposure to any single trade or market.
In addition to risk management techniques, traders should also consider
implementing profit-taking strategies. These strategies involve setting specific profit
targets for each trade, allowing traders to lock in gains and avoid holding onto a
position for too long.
Overall, sound money management practices are essential to successful trading in
financial markets. By implementing a comprehensive money management strategy,
traders can improve their chances of achieving long-term profitability while
minimizing potential risks.

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➢ Psychology:
Trading in financial markets can be a challenging and emotionally demanding
endeavour. Successful trading requires not only a sound knowledge of trading
strategies and risk management techniques but also an understanding of the
psychological factors that can impact trading performance.
One of the most significant psychological challenges in trading is managing
emotions. Fear and greed can lead traders to make impulsive decisions that may
not be based on rational analysis or sound trading principles. It is important to
remain disciplined and avoid making decisions based on emotions.
Another psychological challenge is dealing with losses. Losses are an inevitable part
of trading, but they can be emotionally difficult to accept. Traders must learn to
manage their emotions and not let losses impact their decision-making.
Confidence is another important psychological factor in trading. It is essential to
have confidence in your trading strategy and your ability to execute it successfully.
Lack of confidence can lead to hesitation and missed opportunities.
Discipline is also crucial in trading. It involves sticking to a trading plan and
following trading rules consistently, even when emotions are running high. Traders
who lack discipline may fall victim to impulsive decisions and inconsistent trading
performance.
Finally, traders should prioritize self-awareness and continuous improvement. It is
important to reflect on trading performance regularly and identify areas for
improvement. Traders should seek out opportunities for education and professional
development to continually enhance their skills and knowledge.
In conclusion, psychology plays a critical role in trading. Traders who can manage
their emotions, maintain confidence, exhibit discipline, and continually strive for
self-improvement are more likely to achieve success in financial markets.

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➢ Position Sizing:
Position sizing is a critical component of risk management in trading. It involves
determining the appropriate size of a position in a particular market or trade, based
on the trader's account size, risk tolerance, and the specific risk-reward
characteristics of the trade.
Effective position sizing is crucial for achieving long-term profitability in trading. It
helps to control risk and avoid overexposure to any single trade or market, reducing
the potential impact of losses on overall trading performance.
One common approach to position sizing is the use of a fixed percentage risk model.
This model involves determining the amount of risk that can be taken on any single
trade as a percentage of the trader's account size. For example, a trader may decide
to risk no more than 2% of their trading account on any single trade.
Another approach is the use of the optimal f or optimal f-star model, which involves
adjusting the position size based on the perceived edge or probability of success of
the trade. The optimal f or f-star model aims to maximize profits while minimizing
risk and involves adjusting the position size based on the potential reward and the
risk of the trade.
Ultimately, the appropriate position size will depend on the trader's individual risk
tolerance and trading goals. It is important to consider the potential risk and reward
of each trade and to adjust the position size accordingly. Traders should also
consider diversifying their portfolio and spreading their risk across multiple markets
and trades.
In summary, position sizing is a crucial aspect of risk management in trading.
Traders who effectively manage their position sizes are more likely to achieve long-
term profitability and reduce the potential impact of losses on their overall trading
performance.

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➢ 21 Candlestick secret strategy:
By purchasing this book, you are eligible to get a complimentary guide book on
named “Secret guide to candlestick patterns”.
Check your mail and enjoy.

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 ➢ Trading Journal format:

Trading Journal Format

Date :
Asset Name :
Time frame :
Strategy Name :
Reason for Entry :

Entry Target
Stoploss Exit P/L Remarks
Price Price

Reason for Stoploss :

Reason for Target Price :
Reason for Exit :

 I have prepared my trading plan before market opening.

 I have followed the trading plan properly.
 I was not carried away by the market movements
 I controlled my greed and properly maintained stoploss.

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