Sensex 500-Point Levels with Break-Even Risk Management

Summary

This intraday strategy sets upper and lower price levels from the Sensex opening price at 9:45, rounding to the configured grid increment. It enters long when the close crosses below the upper level and short when the close crosses below the lower level. The description frames the long setup as a possible liquidity-grab reversal, so the rules have a mean-reversion element despite the title’s breakout language.

The script sets an initial stop 100 points from the entry, targets the next grid level, and moves the stop to the entry price after a favorable 200-point move. It stops opening trades after 3:15 PM and closes positions near the end of the session. The document describes the intended use on five-minute Sensex charts, but supplies no performance results or backtest evidence. The rules and examples are specific to this instrument and session; the text does not establish that round-number levels have institutional significance or that the approach is profitable.

Key ideas

• The script calculates the nearest grid levels from the 9:45 opening price.
• A close crossing below the upper level triggers a long, while a close crossing below the lower level triggers a short.
• The initial stop is 100 points from entry, and the target is the next grid level.
• After a favorable move of 200 points, the stop moves to the entry price.
• The strategy restricts entries to the session and closes open positions near the end of the day.

Tags

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