Top 5% Traders Strategy
1. Strategy Overview
This is a strategy that must be used wisely, so that you can make money out of it, any strategy that you get must be used wisely, you should not have blind faith in the market as this market is everchanging and extremely dynamic, therefore, be careful and be disciplined because this strategy requires extreme discipline.
Since this is a loss recovery strategy, you must have a capital that is 3 times more than what you have lost, so for example you lost 1 Lakh rupees, your capital would be 3 Lakh rupees and your risk per day would be 30k Rupees which is 10% of you capital.
Now, you what do you have to do? You must make a long straddle in the market on expiry at 2:00 PM (You can adjust it when you get the closest premium rates) meaning you must buy the Call Option and Put Option of the same strike price, this strike price would be the At the Money (ATM) strike of Nifty 50.
In the example below nifty 50 is prices at 17038 at 02:00 PM afternoon, so you round it off to the nearest strike price which is 17050 and you buy 17050 Ce and 17050 Pe.
What’s the strategy?
You must follow these set of rules:
Here are some references with proper commentary on what we have done in each trade. (These are the trades in which I have using this strategy in the past few weeks)
1. 29th December 2022 – Adani Ports 5 Minute Timeframe
So, we can see that 800 is a support level, and the market breaks it with a weak Doji candlestick; right after the Doji, a bullish engulfing candle is formed, which makes this breakout fake; this is your entry; your stop loss would be a bit away from the low of the fake breakout candle (in this case below the low of the Doji).
2. 5th January 2023 – Bajaj FinServ 5 Minute Timeframe
3. 4th January 2023 – Nifty 50 (5 Minute Timeframe)
Here, 18239 is a resistance from where the market was reversing, but it gives a weak breakout with a higher wick rejection, and then a shooting star and then a bearish engulfing candle is formed, which marks your entry, and you get your target.
4. 26th December 2023 – Nifty 50 (5 Minute Timeframe)
Here 18004 was a resistance level, and the market here gave a breakout, and then a bearish engulfing candle was made where we took our entry, with the stop loss above the high of the breakout candle, and this trade hit our stop loss.
5. 7th December 2023 – Nifty 50 (5 Minute Timeframe)
I hope you have understood the strategy and how this works… this is something that I have noticed for the past 3 years, and I have been using this ever since. Whenever I find the right opportunity, I trade these setups.
Some Important points I have learned from my experience with this strategy are:
Pro Tip: Don’t get obsessed with using this strategy; find the appropriate setup that resembles the one shared above (not the patterns but the market structure). Follow your plan and risk management, practice this strategy, run some backtests, and then start using it yourself!
If you want a complete detailed video on this strategy, just comment here.
If you liked this strategy, share this video with your friends so they can also access this pdf and learn trading in a new way with us!
Hope you love it!
Founder & CEO
UPMARKET ACADEMY PRIVATE LIMITED