Inspired by the famous Single Leg Crorepati strategy by Mahesh Chander Kaushik, I decided to take the plunge into trading NIFTY 50 stocks – but with my own unique twist on the rules. Unlike the original approach, which targets stocks with an RSI (Relative Strength Index) below 35, I’ve chosen to target those with an RSI above 65, following my own method to maximize gains. Here’s how my strategy is structured:
My Trading Rules for NIFTY 50 Stocks
- NIFTY 50 Stock Selection
Only NIFTY 50 stocks are eligible for trades, ensuring a focus on stable, high-volume companies. - Buy Signal (RSI > 65)
I’ll purchase a stock when its RSI climbs above 65, indicating strength and upward momentum. - Place AMO (After Market Order) at Close Price
Orders are set for the close price to ensure precise execution for the following trading day. - Daily Buying Limit
Each day, I’ll buy a maximum of 3 stocks, prioritizing those not already in my portfolio and with the highest RSI. - Profit Booking (6.28% to 6.50%)
Once a stock achieves a 6.28% to 6.50% gain, I’ll book profits. - SIP for Stocks Down by 20%
If a stock falls below 20% of its purchase value, I’ll start a systematic investment plan (SIP) to dollar-cost average down. - Re-buy Conditions
If re-buying, I’ll focus on stocks either not in my portfolio or those down at least 3.14% from the last purchase price. - Portfolio Limit Strategy
I have set strict limits on the number of stocks I’ll hold, adjusting as I reach new stages in my journey:- Hold up to 30 stocks until step 40
- Hold up to 20 stocks from step 41 to 70
- Hold up to 15 stocks from step 71 to 90
Once I hit these 90 steps, I’ll begin a new phase of my Single Leg Crorepati journey with a revised starting amount.
Keeping Track of My Progress
I’m committed to sharing my progress, adjustments, and daily activity updates on both my blog and Twitter for a full year. Stay tuned to see how this journey unfolds as I explore this personalized approach to the Single Leg Crorepati Method!
Update: October 30, 2024
Today, I added ICICIBANK to my portfolio, buying 12 shares with an allocated amount of Rs. 15,000. I had placed an AMO order at Rs. 1331.85, but it opened slightly lower at Rs. 1324, allowing me to buy at that price instead. No additional AMO orders were placed today, as no other stocks were above the RSI 65 threshold. Happy Trading!
Update: October 31, 2024
Following yesterday’s trend, no trades were made today as no stocks met the RSI 65 criteria, especially with the NIFTY dipping further. So, no purchases are lined up for tomorrow either.
Wishing everyone a very Happy Diwali! 🪔 Here’s to seeing how far this strategy takes us by next Diwali.
Happy Trading!
Update: November 6, 2024
Yesterday, I spotted SBIN meeting the RSI > 65 criteria, so I added it to my portfolio at the previous day’s price of Rs. 849.20. This brings my holdings to two stocks: ICICIBANK and SBIN. Today, only SBIN continues to have an RSI above 65, so no new orders were placed.
Happy Trading!