Algo Trading in India |
Bank Nifty orb trading strategy
  • March 25, 2021
  • admin
  • 52

Opening Range Breakout Trading System is one of the widely used method by many Traders. The rules of the strategy is quite simple and straightforward. Bank Nifty creates a range in the first 10 to 30 minutes of trading in a day. This is calling Opening Range. The highs and lows of this time frame is taken as support and resistance. So we wait for first 15 mins range to form, that is from 9:15 am to 9:30 AM

1. Buy when Bank Nifty moves above the Opening Range high.

2. Short when Bank Nifty moves below the Opening Range low.

Stop Loss is 0.5% from entry which is calculated based on Bank Nifty futures level and if stop loss is not hit, we exit by EOD at 3:20 PM. No Targets used.

Why are we recommending trading this strategy only on Monday, not on any other day? When we tried to test this method for last 11 years, from 2010 to 2021, we could see that maximum profits are coming from Mondays rather than any other days. Even though over all profits made was 53k Bank Nifty points, if we dig deep and look at the average profits per trade, only Monday the average profit per trade is as high as 33 points. So if we deduct slippages and transaction cost from this, other days we lose most of the profits for trans cost. So its wise to trade this strategy only on Monday.

Here’s the yearly returns with capital of 2 lacs from 2011 to 2021. This is after all transaction cost such as brokerage, GST, STT, Exchange transaction charges and sebi fee. Remember we simply don’t pay only Rs.20 as brokerage, there are five different transaction cost involved with every trade, so we included all such cost to arrive at the net result. Here’s the backtest excel sheet results of this strategy, download

But instead of applying this strategy in futures, if apply it on options returns would be higher, we have simply buy ATM call option when we get buy signal as per strategy and we buy ATM Put option when we get Short signal as per strategy. 2 lots ATM option almost equals one lot of futures. If we keep 75,000 Rs. as capital and trade in Options Buying, here’s how returns would look like, however we recommend you to trade with 1.5 lacs per lot

We have launched a free trading bot to fully automate this strategy, where users just have to login to SquareOff bots and update their lot size, the bot would automatically buy respective options for you. And when SL hits, it will automatically exit from the trade, no manual intervention required.  Users who wanted to get access to this free bot, just have to open a new trading account with Alicbelue or Fyers or Angel Broking or Trustline under Squareoff referral using this link and get free life time access to this bot

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52 comments on “ORB Bank Nifty Only Monday Trading Strategy

  1. You mentioned 3 bots free of cost who have open account with your referal which 3 bots is free for lifetime

  2. What is the hit ratio of this Strategy from the back test? Will this be available from 12th April?
    Is 75K the margin required to trade 2 lots?

    1. Hit ratio is around 55% and yes 75k margin is enough to trade only one lot. 2 lots if you trade risk goes higher as you have to handle drawdown

  3. How many entries it will take ? I mean if the stoploss is hit and again it breaks the range, the bot will enter again or just one trade per day?

  4. For Bullish Signal can we sell one ATM put and vice versa, instead of buying; Time decay will on our side then;
    or we can do one thing, if we are buying we should buy monthly option and if selling we should sell weekly option; what would u say?

  5. Whether ORB monday only option buying BOT can be used on any other day of the week depending upon our discretion apart from choosing monday’s trade?

  6. Can you help me understand what is the capital requirements for each of your strategy if I choose to subscribe to your annual plan.
    Also will you help do create ALGO for my strategy

  7. Hi, My earlier question disappeared after I submitted. So hence submitting again.

    I want to open account with your link to try out bots. But Once account is opened, I may use it for normal trading also hence need answer for below question so I can decide which broker to go with among 4 brokers that you had provided links for:

    1. Which of these 4 brokers does NOT impose additional (increased) margins on Short options positions 2 days before expiry ? I am asking because Zerodha kind of brokers are forcing us to close SHORT option positions 2 days before expiry by imposing additional margins upto 50% margin?

    2. Which broker among these 4 will allow to keep Option positions till 3.20PM on everyday expiry day ? (Some brokers square off positions at 3.15PM , some at 3.20PM on daily basis / Expiry day. Please clearly answer cut off time for each of 4 brokers.

    3. In addition to your bots, If I want to subscribe for other bots available in the market, Which of these 4 brokers give free API access to me ??

    4. Which of these 4 brokers provide desktop application to trade instead of just web version ? My first preference would be desktop application.

    Request you to reply each question with names of brokers supporting it so I Can decide which account to open through your links. Thanks for your detailed reply.

  8. Hi, My earlier question disappeared after I submitted. So hence submitting again.

    I see that lot of people have already signed and using your bots. So, all of them will be hitting the market with same trades at same time specified by the bots. So to reduce risk, do you allow to modify the time of entering trade – say 9.19AM instead of 9.20 and 3.18Pm to exit instead of 3.20PM ?? Specially this is helpful in strategies like BNF Short straddle bots etc.
    Do you allow this to people who buy your bots ??

    Let me know.

    1. Customization is not possible with , however many users entering orders at same time wont have an impact because, we place the stop loss based on executed price, so if first user execution happens at 100, then stop loss will be 125 for him , but for 50th user executed price is 110, then stop loss will be 25% of 110. So the SL is dynamic based on executed price, that’s how we are able to handle large orders without having much impact.

      With our new OptionX platform, these customization will be possible

        1. OptionX is new platform from Squareoff using which anybody can automate their own option trading strategies and will be launched as free as a luanch offer for three months to all users. You can enroll here for early access which will be launched next month

  9. Sir we see 15min ORB chart of BNF future and buy call or put ATM as per BNF future price at 9.30 am. and put 0.5% SL on BNF Future . If it hit then we exit the trade. IS my interpretation correct

  10. Sir when we enter this strategy? after a 15 min candle closes above or below first 15min candle ?

  11. How many enteries bot will take ? I mean if SL hits, will it take rentry on same or other side ?

  12. What is the Target percentage used in this strategy? Is BOT is trailing the SL automatically? Or how?

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