Intraday Trend Trading

Intraday Trend following strategy is a long only strategy, that focus on stocks which has shown some momentum already.

At we have multiple trading strategies that are available in our Fully automated platform. One such strategy is Intraday Trend

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This strategy works on plain simple logic. It doesn’t focus on gaps, doesn’t focus on opening range or any other such known factors. Instead this strategy waits till 11:15 am, after 2 hours from market opens, that’s when the whole noise goes down. All over night news gets factored in the price of all stocks, the movements become stable, this is when our algorithm starts scanning the stocks.

The algorithm starts scanning all 150+ stocks and checks which are in uptrend by 11.15 AM. There could be multiple stocks which can show signs of uptrend, so our algorithm picks up top 5 stocks that has moved up >3% from Open to 11.15 AM, and go long on these 5 stocks with day open as stop loss. Once entry is done, we close the position by 3:20 PM, no targets.

So the rules are simple & straight forward.

  1. Look for stocks that has moved up >3% by 11: 15 AM from Day open.
  2. Go long at 11:15 AM candle close
  3. Stop loss Day open price, if stock goes below day open price, we exit.
  4. If stop loss is not hit, we close the position by 3.20 PM
  5. No shorts, only long.

Shorts will not work well with this logic because of short squeezes and mean reversion that often happens with beaten down stocks, hence going only long has ended up in higher profits with this strategy. 

The strategy has been tested from 2016 to 2020, it has given consistent returns year on year.

Traders who wanted to trade this strategy, can use our Fully automated Alice Blue platform it is made available for all existing Squareoff bot subscribers at free of cost. The bot would automatically place these orders for you, in your own account. Open an Alice Blue account online using our partner link and get free trial access to our Intraday Trend trading bot.