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    11.BTST Trading Strategy

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    rocimo
    The document discusses the BTST (Buy Today Sell Tomorrow) trading strategy. [1] BTST allows traders to sell shares before they are credited to their Demat account or delivered, benefitting from short-term volatility. [2] Advantages include profiting from intraday price movements over 2 days, while disadvantages include overnight risk and lack of margin. [3] The strategy outlines picking stocks at support levels that gap up, with volume higher than the previous day.

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    11.BTST Trading Strategy

    Uploaded by

    rocimo
    3K views15 pages
    The document discusses the BTST (Buy Today Sell Tomorrow) trading strategy. [1] BTST allows traders to sell shares before they are credited to their Demat account or delivered, benefitting from short-term volatility. [2] Advantages include profiting from intraday price movements over 2 days, while disadvantages include overnight risk and lack of margin. [3] The strategy outlines picking stocks at support levels that gap up, with volume higher than the previous day.

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    11.BTST TRADING STRATEGY

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    The document discusses the BTST (Buy Today Sell Tomorrow) trading strategy. [1] BTST allows traders to sell shares before they are credited to their Demat account or delivered, benefitting from short-term volatility. [2] Advantages include profiting from intraday price movements over 2 days, while disadvantages include overnight risk and lack of margin. [3] The strategy outlines picking stocks at support levels that gap up, with volume higher than the previous day.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    3K views15 pages

    11.BTST Trading Strategy

    Uploaded by

    rocimo
    The document discusses the BTST (Buy Today Sell Tomorrow) trading strategy. [1] BTST allows traders to sell shares before they are credited to their Demat account or delivered, benefitting from short-term volatility. [2] Advantages include profiting from intraday price movements over 2 days, while disadvantages include overnight risk and lack of margin. [3] The strategy outlines picking stocks at support levels that gap up, with volume higher than the previous day.

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    © All Rights Reserved
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    Download as pdf or txt
    of 15

    B4Trading - Tamil

    BTST TRADING STRATEGY


    BTST TRADING STRATEGY :

    1. WHAT is BTST (Buy Today Sell Tomorrow) Trading ?


    2. BTST Trading Strategy Advantages
    3. BTST Trading Strategy Disadvantages
    4. Strategy for BTST trading
    5. Breakout Strategy
    6. Stock selection condition for both BTST Trading Strategy
    7. CLOSING SWING and VOLUME
    BTST TRADING STRATEGY :

    1. WHAT is BTST Trading ?

    ➢ BTST (Buy Today Sell Tomorrow) is a method that allows


    customers to sell shares before they are credited into a
    Demat account or take the delivery of shares. The reverse
    of BTST is called STBT, i.e. Sell Today Buy Tomorrow
    BTST TRADING STRATEGY :

    Advantages : Disadvantages :

    • It allows you to benefit from the


    short-term volatility or • Unlike intraday trading,
    increase/decrease in the price of most stockbrokers do not
    the stocks. offer margin to BTST
    facilities.
    • If you find intra-day trading
    unprofitable, then BTST gives 2 • Overnight risk.
    more days to your trades to
    improve its performance.
    ➢ Criteria for long :

    • PREVIOUS DAY RED CANDLE SHOULD BE SMALL,

    • PRICE AT THE CLEAR SUPPORT LEVEL,

    • NEXT GREEN CANDLE(CURRENT T DAY) PRICE CLOSE ABOVE THE RED


    CANDLE(PREVIOUS DAY),

    • CURRENT DAY CANDLE MAY GAP UP OR GAP DOWN DOESN’T MATTER,

    • VOLUME GREATER THAN PREVIOUS DAY


    ➢ Breakout Strategy :

    • Here I discussed the breakout trading strategy. read as logic and condition all
    are the same. Just move to a daily time frame,
    • Price should close below clean support and above the resistance level.
    ➢ Stock selection condition for BTST strategy :

    • INDEX :
    • Identify what the general market or index is doing ?
    1. Trending
    2. At support or resistance zone

    • First Identify the support and resistance zones in the index (nifty). If markets closed near the
    support zone, I would know to look for opportunities to buy the next day as the price was likely
    to rally from that support zone

    ➢ Sector selection :

    • look at charts sectors to find some that are also trading near support zone as those sectors
    would likely rally from that support zone with the index (nifty ) market the following day. Out of
    the few sectors, I would always find one or two that were set up very well with the broad market
    (index).

    • If the index is bullish, select a strong sector for BTST


    ➢ News stock :
    • AVOID frequently NEWS BASED SECTOR (LIKE PHARMA)
    ➢ Open Low-Open High :
    • If stock open with open high or open low
    • Add confidence if open with open low or open high
    ➢ Exit :
    • Most of the time these scripts are opened the next day with a gap up .profit should be booked
    within 5-10 minutes in the next session.
    • If the price moving strongly from the open in the direction of your entry, you can trail your stop loss
    • If the market closes with a strong premium (closing at day high) but opens weak (gap down)the
    next morning, the odds favor that the first move will be to the upside to test the previous day
    high(fill the gap). If the market closes weak, and the futures close with a discount (close at day
    low), yet the market gaps up the following morning, the first move should be a retest down to
    attempt to fill the gap.
    • If the price gap down (you took BTST).YOU can exit immediately or wait for opening range and
    place sop loss or wait for the first five-minute candle and place stop loss. It totally depends open
    your risk.

    ➢ Entry Time :
    • After 3:15 pm
    ✓ B4Trading – Tamil

    • Watch our videos on youtube channel

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