Discussion Topic: Intraday Strategy on STAR
In this article, we will discuss an intraday strategy on Strides Pharma Science Ltd. i.e. - Intraday strategy on STAR. This is very easy to use strategy. Because of its usefulness, I have given it a name “SHINING STAR”.
But Before I continue, let me remind you that investing in the stock market is a very risky business. Please read our disclaimer before investing.
** Special thanks to Mr. Prakash for optimizing the performance of this strategy.
What is SHINING STAR - Intraday Strategy?
Shining STAR is a profitable intraday strategy which I personally use in real life trading. Since the last 2.5 to 3 months this strategy is giving a good profit at the month end. This is purely a breakout strategy and nothing else.
It is very easy to implement and you only have to look at the chart for 15 minutes. Hence, it is perfect for working professionals who do not have much time to constantly monitor the market.
What Scrip/Share is this?
- Scrip Name: STAR
- NSE ID: STRIDES SHASUN / Group: NIFTY SMALLCAP 100
- BSE ID: 532531 / Group: S&P BSE 500
- Trading Segment: Cash Market Only, DO NOT use this strategy in Futures segment.
How to Trade with SHINING STAR intraday strategy?
As everything in this world has some set of rules, it also has. You just have to follow the rules with discipline. Also, make sure you do follow Money Management basics and adhere to the position sizing technique.
Time Frame: 15 Minute Candlestick or Bar Chart.
- Watch the 2nd 15 Minute Candle/Bar (Which Close at 9:45 AM) – If the range of this candle/bar is Rs.5 or below, then place BUY order above 0.15 rupee of High and place SELL order below 0.15 rupee of the LOW. If the range of the 2nd candle/bar is more than Rs.5 then ignore this candle/bar and look for the 3rd candle/bar (Which close at 10:0 AM)
- Watch if the range of the 3rd candle/bar is Rs.5 or below, then place BUY order above 0.15 rupee of High and place SELL order below 0.15 rupee of the LOW. If the range of the 3rd candle/bar is more than Rs.5 then ignore this candle/bar and look for the 8th candle/bar (Which close at 11:15 AM).
- Watch if the range of the 8th candle/bar is Rs.5 or below, then place BUY order above 0.15 rupee of High and place SELL order below 0.15 rupee of the LOW. If the range of the 8th candle/bar is more than Rs.5 then NO trade for that day.
- Target will be: Signal Candle Range + 0.15 rupee from the buy/sell price in whatever side it breaks-out.
- In the case of SL HIT, Reverse trade to be taken with the same quantity. Target will be Signal Candle Range + 0.15 rupee from the buy/sell price. (This is to recover previous loss)
- For BUY, stop-loss will be Signal Candle LOW - 0.15 rupee. For SELL, stop-loss will be Signal Candle HIGH + 0.15 rupee
- If you are using bracket order (BO) then put a buy order above 0.15 rupee of HIGH (select SL instead of LIMIT) mentioning target as Signal Candle Range + 0.15 rupee & stop-loss as Signal Candle Range + 0.30 rupee. Also, put a SELL order below 0.15 rupee of LOW (select SL instead of LIMIT) mentioning target Signal Candle Range + 0.15 rupee & stop-loss as Signal Candle Range + 0.30 rupee.
- (Optional) You can use the ATR (1) indicator to easily measure the candle range.
- (Optional - For Risky Traders) In reverse trade, you can book 80% shares at 1st target (mentioned at Point-4) and go with rest 20% for Signal Candle Range + 0.15 rupee + 1.0 rupee target. (This will also recover brokerage).
How to Follow This Strategy in Real Life?
I will give 2 examples on how to trade in this Shining Star intraday strategy.
Let’s take the example of 15th Feb’19
The 2nd candle HIGH was 406.80 and LOW 401.50 hence the range was 5.30. As this is more than Rs.5.0 we ignore this candle.
Then we watch the 3rd candle, whose HIGH was 408.15 and LOW was 405.30. Hence, the range was 2.85. It is well within the range hence, considered as the signal candle.
So, we place a BUY order above 408.15+0.15 = 408.30 and a SELL order at 405.30-0.15 = 405.15. Our Target will be Signal Candle Range + 0.15 from the buy/sell price, i.e. - 2.85+0.15 = 3.00 rupee.
Hence If BUY side triggers then target will be 408.30 + 3.00 = 411.30 and if SELL side triggers then 405.15 - 3.00 = 402.15
See the low breaks and stock falls up to 398.15 on the very next candle. Hence, Target Hit.
I will give another example:
Let’s take the chart of 14th Feb’19. The 2nd candle HIGH was 409.80 and LOW 406.10 hence the range was 3.70. As this is less than Rs.5.0 we considered it a signal candle.
So, we place a BUY order above 409.80+0.15 = 409.95 and a SELL order at 406.10-0.15 = 405.95. Our Target will be Signal Candle Range + 0.30, i.e. – 3.7+0.15 = 3.85 rupee.
Hence If BUY side triggers then target will be 409.95 + 3.85 = 413.80 and if SELL side triggers then 405.95 - 3.85 = 402.10
See the HIGH breaks and stock rise up to 411.80 and then reversed. It hits the SL for that day and we took reverse trade with the same quantity. Then it falls till 400.10. Hence Target Hits.
For risky traders, the second target was another 1 rupee, i.e. – 402.10 -1.0 = 401.10. It hits that target too, as it falls till 400.10.
Please do some backtest before working with this strategy. Also, you may do paper trade or trade in small quantity to gain confidence in this strategy. Don’t put a big amount in trading unless you are 100% confident.
We hope that you have enjoyed the above article explaining the intraday strategy on STAR or Strides Pharma Science Ltd. Be with us to explore forex trading, stocks trading, and other money-making opportunities.
Leave us some comments if you have any questions or doubts about the Shining STAR intraday strategy, we will be happy to help you.