Sensex Breakouts at 500-Point Levels with Intraday Stops

Summary

This intraday Sensex strategy sets upper and lower thresholds around the opening price at 9:45, using 500-point increments. It enters long when a later close reaches the upper threshold or short when a close reaches the lower one, during the specified session. The described setup aims to trade momentum through psychologically salient round-number levels after the opening period.

Risk controls include an initial 100-point stop, moving the stop to breakeven after a favorable 200-point move, a target one 500-point increment beyond the relevant threshold, a daily limit of three trades, and end-of-day closure. The document reports a backtest on five-minute Sensex data with positive net profit, a profit factor above one, and a stated maximum drawdown, but gives no sample-size or broader validation details. The code also depends on chart timeframe and session behavior, and the supplied performance figures alone do not establish robustness or live results.

Key ideas

• The strategy calculates the nearest 500-point levels from the price at 9:45.
• A close at or above the upper level triggers a long, while a close at or below the lower level triggers a short.
• The initial stop is 100 points away and moves to breakeven after a 200-point favorable move.
• The script caps entries at three per day and closes positions near the end of the session.
• Published backtest metrics are limited evidence and do not demonstrate performance outside the reported setup.

Tags

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