BTST - Trading strategy
Here’s a strategy for BTST (Buy Today & Sell Tomorrow), the logic behind this strategy is derived from Open=Low, Open=High intraday strategy.
Strategy: Condition would be, after 3:25 PM, check the list of stock that satisfies the condition Open=Low, go long on these stocks and exit at next day close.
When the stock stays Open=Low for the entire day, it shows significant buying strength and more upside is expected on coming days and by entering after 3:25 PM, we are entering almost at day close, so its impossible for the stock to breach Day low in 5 mins.
Risk reward ratio of 1:3
Accuracy : 50 %
Additional Filters : Traders who want to increase the accuracy can add more condition to the strategy by applying filters like choosing stocks only that trades above 200 DMA, or stocks that are near 52 week high or only uptrend stocks etc which would increase the deficiency of the system.
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