Overview

Our strategy is deeply rooted in Market Profile concepts, leveraging the powerful insights it provides to optimize trading decisions. Here's a closer look at the key elements we use:

Value Area Levels

We identify the range where 70% of the trading activity takes place, providing a clear view of the market's perceived fair value.

Point of Control (POC)

By pinpointing the price level with the highest traded volume, we gain insights into the market’s consensus value, helping to identify potential support and resistance levels.

Initial Balance

The range established in the first hour of trading sets the tone for the rest of the day. Analyzing this helps us anticipate market behavior and potential breakouts.

Single Prints and Anomalies

We track single prints, which represent price levels that were accepted only briefly, indicating potential areas of support and resistance. Anomalies help us spot irregularities that may signal market turning points.

Open Types, Locations, and Convictions

The type of market open (e.g., open drive, open test drive), its location relative to previous sessions, and the conviction behind the open provide critical context for intraday trading strategies.

Time-Price Opportunities (TPOs)

We identify the range where 70% of the trading activity takes place, providing a clear view of the market's perceived fair value.

Volume Profile

By examining volume distribution at different price levels, we can identify high-interest areas that may act as significant support or resistance levels, refining our entry and exit points.

Market Sentiment Analysis

By analyzing the balance between buyers and sellers and understanding the underlying market sentiment, we can adjust our strategies to align with market dynamics.

Segment and Capital Required

Our strategy involves meticulous selection from the Nifty 500 stocks,
ensuring only the best candidates are chosen for trading.

Capital Requirement

A minimum capital of INR 1,00,000 is needed for this strategy. Subscriptions can be made in multiples of this amount.

Focus on Equity Only

We avoid Futures and Options due to their volatile nature and the difficulty in setting precise stop-loss (risk) and profit (reward) levels.

Leverage Utilization

We utilize MIS leverage, allowing for up to 5x leverage on most stocks.

Position Sizing

Each position will deploy 25-30% of the capital, allowing for a maximum of 3 open positions at any given time.

Drawdown Buffer

We maintain a buffer of 10-25% of the capital, which is not deployed in the strategy, to accommodate potential drawdowns.

Performance metrics

Accuracy

Approximately 65%

Monthly Profit

5% (after brokerage and subscription charges)

Maximum Drawdown

15%

Number of Trades

15-20 trades per month

Riskometer Level

Moderately High

Note

The risk and returns mentioned are based on historical trades over the last two years. Given the volatile nature of markets, actual risk and rewards may vary. Some months might result in losses, while others could yield double the expected returns. We recommend staying in the system for at least three months to achieve significant returns. Please use this strategy with caution.

Additionally, since many trades are taken each month, choose a broker with minimal brokerage charges. We do not recommend any specific broker; it is up to you to research and select the one that best suits your needs.

Salient Features

Leveraging Market Profile Concepts

Our strategy employs proven Market Profile concepts to scout stocks, accurately identify entry and exit points, and track institutional money movements. By utilizing Market Profile, we gain a comprehensive view of market structure and sentiment, leading to more informed trading decisions. While Market Profile is widely used as an analytical tool in the industry, this strategy is unique in India for integrating these concepts into algorithmic trading.

Diversification of Instruments

We ensure diversification by not allocating all capital to a single instrument. Only 25-30% of the capital is allocated to any single position, thereby spreading risk across multiple positions.

Robust Risk Management Framework

Each trade is guided by a robust statistical framework that determines the optimal risk-reward ratio. This ensures that trades are executed based on a calculated and disciplined approach to risk management.

Who is it suitable for?

Individual Persona

Exceptional Patience: Demonstrates an exceptional level of patience, crucial for enduring market fluctuations.

Good Discipline: Maintains good discipline in adhering to the trading strategy without deviation.

Strong Emotional Control: Exhibits strong emotional control, managing emotions effectively during market highs and lows.

Technical Knowledge

Basic Trading: Possesses a fundamental understanding of trading or investing concepts and has at least one year of active participation in the stock market

Realistic Market Perspective: Holds a practical and realistic understanding of market dynamics.

Clear Understanding of Risk and Reward: Fully comprehends the relationship between risk and reward in trading.

Strategy Understanding

High Risk Tolerance: Capable of accepting a maximum drawdown of 15%. While this is a worst-case scenario, it’s important to have the mindset to handle such losses.

Long-Term Commitment: Commits to staying invested in the strategy for at least three months to realize significant returns.