Renko & Stochastic RSI Trading Strategy for Nifty 50
Hello Everyone, I’d like to share a Renko-based trading strategy I’ve been working on for Nifty 50 stocks. The strategy is designed for intraday trading and incorporates stock-specific tracking of profit and loss (P&L). This ensures precise risk management for each stock while enabling better decision-making. Here's the detailed explanation: 1. Strategy Overview - Renko Box Size: a. Calculated using the ATR (14) of the previous day’s 5-minute candles. b. Box sizes are rounded to the nearest 10 paisa for each stock. - Indicators Used: - a.Renko Charts for price filtering. - b. Stochastic RSI, applied to Renko closing prices instead of candlestick data. - Trading Hours: - The algorithm begins scanning for trades at 9:20 AM to allow for initial market stabilization. - Uses the first 5-minute candle (from 9:15-9:20 AM) for calculations. - Profit/Loss Tracking: The algorithm maintains a separate P&L tracker for each stock to monitor individual stock performance. Trades for a specific stock are stopped once the profit or loss for that stock reaches ₹1,000 for the day. 2. Entry Rules - Buy: When %K crosses %D from below in the oversold zone (< 20). - Sell: When %K crosses %D from above in the overbought zone (> 80). - This Stochastic RSI needs to take the closing price of Renko box and not candles 3. Exit Rules - Stop Loss (SL): 2 Renko bricks (e.g., if the box size is ₹1.5, SL = ₹3). - Take Profit (TP): Square off 50% of the position at 2 Renko bricks profit. Trail the remaining position until a Renko box reversal (opposite direction brick forms). - Trade Limits: Maximum 2 trades per stock per day. Stop trading a stock if the profit or loss reaches ₹1,000 for the day. (This is to be tracked only after closing the position) https://www.tradingview.com/x/MBWDgzH0/