Nifty Trend Strategy Using RSI, VWAP, EMA, and Trailing Stops

Summary

This Nifty strategy combines three indicators for directional entries: price relative to VWAP and a 20-period EMA, plus RSI momentum. It opens long positions when price is above both reference lines and RSI exceeds 60; it opens short positions when price is below both and RSI falls under 40. The script plots the VWAP, EMA, and active stop level. Its position size is set to 100 percent of strategy equity in the published settings.

Exits use a trailing stop set to 0.5 percent from the current close by default, with the distance adjustable in settings. The accompanying description suggests applying it to Nifty options and favors a 15-minute chart, but supplies no backtest results or performance evidence. The source implements long and short positions in the underlying strategy; it does not show options contract selection or model option-specific pricing, costs, or execution. The trailing stop logic and signal behavior should therefore be assessed in the intended platform and market before practical use. The document also does not quantify slippage, fees, or risk from its full-equity sizing.

Key ideas

• Long entries require price above VWAP and the EMA, with RSI above 60.
• Short entries require price below VWAP and the EMA, with RSI below 40.
• A configurable trailing stop follows the position using a percentage of the current close.
• The description recommends a 15-minute chart but provides no backtest evidence.
• The strategy settings allocate 100 percent of equity per position.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.