Index - Bank Nifty: BTST Strategy | Earn Rs. 23,580 Every Week - English

Index - Bank Nifty: BTST Strategy | Earn Rs. 23,580 Every Week

Today, I'll share two fantastic strategies for BTST (Buy Today, Sell Tomorrow) that can transform your perspective on BTST trading. You no longer need to spend the entire day sitting for 6:30 hours; even if you choose not to sit, your account will still grow significantly.

Strategy 1 - Alligator Indicator:

Let's dive into the first strategy. To implement this, navigate to the TradingView platform. As you arrive at the TradingView platform, go to the indicators section. Pay close attention, don't make any mistakes. Many people rush and make errors. Let me guide you - you need to type 'A' here, then 'LL,' and finally 'I.' After typing this, you will see that the Alligator indicator appears. Click on the Alligator indicator.

Now, let me provide you with some information about its settings. Interestingly, there are no specific settings for this indicator; you can keep it by default. After clicking on it, you'll notice three lines - blue, red, and green. Let me explain what to keep in mind while using these lines.

• Blue Line: Represents the Alligator's jaw.
• Red Line: Represents the Alligator's teeth.
• Green Line: Represents the Alligator's lips.

1) Naked Option Strategy:

Now, let's talk about how you can enhance this strategy even further. As I mentioned earlier, money management is crucial. Suppose you have ₹10,000, and for intraday trading, you've decided to allocate ₹5,000 for BTST. This ₹5,000 includes the premium for BTST trading. Let's break it down:

• Premium Allocation: Allocate the premium between ₹50 and ₹60. This ensures flexibility and a decent buffer for the strategy.
• Profit Guarantee: As we discussed, 7 out of 10 days, you have a profit guarantee. The other 3 days, we are carrying a loss in our pocket.
• Next Week's Premium: On the day of expiry, let's say Friday, buy the premium for the next week. This ensures that you are prepared for the upcoming week's trades.

• Scenario 1 (Buy Call): If the market closes above the blue line, buy a call for the next day. This is a straightforward situation.
• Scenario 2 (Buy Put): If the market closes below the blue line, buy a put for the next day. Again, a simple scenario.
• Scenario 3 (Crossing Indicator Line): If the blue line crosses any candle (green or red), buy a put immediately.

Remember, when trying a new strategy, always start with a small amount and gradually increase it once you gain confidence. This way, you can manage your risks effectively. Keep practicing, observe the market, and refine your approach based on real-time experiences.

2) BUY BOTH CALL & PUT - Now, let's dive into our second strategy:

In this strategy, your profit potential may be lower, but it's more certain. Let me explain how. First, you need to buy both a call and a put option before the market closes. I'll guide you on when to execute this strategy and when not to.

Second Strategy - Buy Both Call & Put:

Now, let's delve into the second strategy. Here, the premium is between ₹30 and ₹40, and the investment is ₹6,000 (₹3,000 for a call and ₹3,000 for a put).

Here's a crucial piece of advice: if you plan to engage in BTST trading for five days, choose Monday and Tuesday. Specifically, if you want to perform BTST trading on Monday afternoon and Tuesday, consider taking the premium for next week's expiry that falls on Wednesday.

This decision is vital because, after Monday, Tuesday follows, and then comes Wednesday. So, avoid selecting the expiry for the coming Wednesday because your premium might decay if you perform BTST on Monday and Tuesday. Similarly, if you execute BTST on Tuesday and the market opens flat on Wednesday, your premium could halve.

To avoid such scenarios, perform BTST on Monday and Tuesday, focusing on Bank Nifty. Regarding the rest of the days, whether you perform BTST on Monday and Tuesday, acquire the expiry for the next week. This will save you a considerable amount of money, and profits will follow.

Now, let's move on to the execution of this strategy. You need to purchase one call and one put option. Pay close attention to the premium, ensuring it falls within the range of ₹30 to ₹40. Considering a quantity of 30 for both call and put options, your expenditure will be ₹2000. The expected profit, considering a 10% return, would be ₹200. Deducting broker charges, you can comfortably expect a net profit of ₹100.

Keep your profit expectations between 5% and 10% for this strategy.

As for the investment amount, if you can afford ₹6000, allocate ₹3000 for buying calls and ₹3000 for puts. In this way, your investment of ₹6000 can yield a profit between ₹500 and ₹600 per day, assuming a 5% to 10% return.

Practice this strategy daily, and your profits could accumulate steadily. Remember, the key to success lies in disciplined and cautious trading. Always be mindful of the risks associated with BTST trading, and trade responsibly.

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