Sensex Round-Number Breakout Strategy with Stops and Daily Trade Limits

Summary

The strategy sets upper and lower price levels from the nearest 500-point increments at 9:45, then enters long or short when a candle closes beyond the corresponding level. It places an initial stop 100 points from the entry, targets the next round-number increment, and moves the stop to entry after a favorable 200-point move. It restricts entries to the intraday session and closes positions near the end of the day. The code’s default daily trade cap is three, while the accompanying description discusses a five-trade cap, so those details conflict.

Key ideas

• The strategy uses the 9:45 opening price to establish neighboring 500-point round-number levels.
• A close at or beyond either level triggers a directional entry when the strategy is flat and within the trading window.
• The code uses a 100-point initial stop and a target one increment beyond the entry-side level.
• After a favorable move of 200 points, the stop moves to the position’s average entry price.
• The document reports backtest statistics, but supplies no underlying test period or methodology, and its stated trade limit conflicts with the code default.

Tags

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