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Explore Rule-Based Trading Strategies

Guides to rule-based trading strategies for Nifty, Bank Nifty, Sensex, NSE stocks and MCX commodities. Each guide explains how the strategy works, its entry and exit rules and its main risks, so you can test it before you trade it. Search the list below or filter by type.

50pages
1,22,256words

Index

4 pages
Index17 minAutomated Straddles, Strangles & Momentum in Bank NiftyBank Nifty options have long been among the most actively traded derivatives in India.Read the guide →Index24 minFinNifty Option Trading GuideFinNifty option trading means trading options on the Nifty Financial Services index, which tracks 20 of the largest banks, non-bank lenders, insurers and…Read the guide →Index26 minNifty Option Trading GuideNifty option trading means buying or selling options on the Nifty 50 index on NSE.Read the guide →Index21 minSensex Option Trading GuideSensex option trading means trading options on the S&P BSE Sensex, the 30-stock index of BSE, India's oldest stock exchange.Read the guide →

Option selling

12 pages
Option selling8 minUnderstand an Options Calendar SpreadA calendar spread sells an option in a near expiry and buys the same strike in a later expiry.Read the guide →Option selling5 minDynamic Delta Hedging Algo for Indian IndicesA delta-neutral strategy holds options positions whose overall delta is close to zero, so small moves in the index barely change their value.Read the guide →Option selling27 minExpiry Day Trading StrategiesExpiry day is the most dramatic session in the options market.Read the guide →Option selling21 minUnderstand an Iron Condor StrategyAn iron condor sells an out-of-the-money call spread and an out-of-the-money put spread on the same expiry.Read the guide →Option selling15 minIron Fly Strategy for Index Options: Rules, Payoff and AutomationAn iron fly, also called an iron butterfly, is a short straddle with protection.Read the guide →Option selling21 minNon-Directional Option Selling Algos for Indian IndicesThe short straddle is one of the most traded option strategies on Nifty. It is simple to set up, collects a large premium and profits on quiet days.Read the guide →Option selling17 minUnderstand a Short Strangle and Its RisksA short strangle sells an out-of-the-money call and an out-of-the-money put on the same expiry.Read the guide →Option selling8 minUnderstand a Bull Put Spread StrategyA bull put spread is a two-leg options strategy for a market you expect to stay above a level. You sell a put and buy a lower put in the same expiry.Read the guide →Option selling6 minUnderstand a Bear Call Spread StrategyA bear call spread is a two-leg options strategy for a market you expect to stay below a level. You sell a call and buy a higher call in the same expiry.Read the guide →Option selling6 minHow a Covered Call Strategy WorksA covered call is an options strategy for shares you already hold. You sell a call option against the shares and keep the premium.Read the guide →Option selling6 minUnderstand a Long Call Butterfly SpreadA long call butterfly is a three-strike options strategy for a market you expect to finish near a level.Read the guide →Option selling6 minHow Call and Put Ratio Spreads WorkA ratio spread is an options strategy that buys one option and sells more options of the same type at a further strike, usually two for one.Read the guide →

Option buying and hedges

8 pages
Option buying and hedges8 minUnderstand a Bear Put SpreadA bear put spread is a two-leg options strategy for a moderate fall in the index.Read the guide →Option buying and hedges8 minUnderstand a Bull Call SpreadA bull call spread is a two-leg options strategy for a moderate rise in the index.Read the guide →Option buying and hedges6 minUnderstand a Long Straddle StrategyA long straddle buys an at-the-money call and an at-the-money put with the same strike and expiry.Read the guide →Option buying and hedges5 minUnderstand a Long Strangle StrategyA long strangle buys an out-of-the-money call and an out-of-the-money put on the same expiry.Read the guide →Option buying and hedges27 minOption Buying StrategiesOption buying strategies explained with model numbers: the move a bought call needs to break even, strike and expiry choice, exits, sizing and automation.Read the guide →Option buying and hedges7 minUnderstand a Protective Put StrategyA protective put is insurance for a long position. You hold shares, an ETF or a long futures contract, and you buy a put option on it.Read the guide →Option buying and hedges5 minHow a Collar Strategy Limits RiskA collar is an options strategy that puts a floor and a ceiling on a position.Read the guide →Option buying and hedges5 minBuild Synthetic Long and Short FuturesA synthetic future is a position built from options that behaves like a futures contract.Read the guide →

Indicators

14 pages
Indicators5 minUse ATR to Define Volatility-Based Trading RulesThe Average True Range, or ATR, measures how much an instrument typically moves in a period, including gaps.Read the guide →Indicators5 minBuild Rules for a Bollinger Band BreakoutBollinger Bands surround a moving average with two lines set a number of standard deviations above and below it.Read the guide →Indicators4 minUnderstand Bollinger Band Mean ReversionA Bollinger Band mean reversion strategy treats the bands as boundaries of normal price movement.Read the guide →Indicators4 minExplore Donchian Channel Breakout RulesA Donchian channel marks the highest high and the lowest low of the last N periods.Read the guide →Indicators18 minMACD Trend Following Strategy: Rules, Exits and FiltersA MACD trend following strategy for Nifty futures: signal-line and zero-line rules, a worked trade, exits compared, option versions, sizing, costs and the QuantPower setup.Read the guide →Indicators17 minMoving Average Crossover Strategy: Rules, Settings and ExitsA moving average crossover strategy for Nifty futures: seven pairs compared on one model series, a worked 9/20 EMA trade, filters, exits, option versions, sizing and costs.Read the guide →Indicators18 minBuild Rules for an RSI Mean Reversion StrategyAn RSI indicator strategy uses the Relative Strength Index to spot moves that have gone too far, too fast, and trades the move back toward the average.Read the guide →Indicators5 minUnderstand a Supertrend Trading StrategySupertrend is a trend-following indicator that draws a single line above or below the price.Read the guide →Indicators5 minAutomated Stocks & Futures VWAP Band TradingVWAP, the volume-weighted average price, is the average price of an instrument during the day, weighted by how much traded at each price.Read the guide →Indicators5 minBuild Rules for a Stochastic Oscillator StrategyA stochastic oscillator strategy uses the stochastic indicator to time entries when a market has stretched too far in one direction.Read the guide →Indicators5 minUse ADX Rules to Trade Strong TrendsAn ADX strategy uses the Average Directional Index to trade only when a market is trending strongly. ADX measures the strength of a trend, not its direction.Read the guide →Indicators5 minBuild Rules for Fibonacci Retracement TradesA Fibonacci retracement strategy looks for entries when a trending market pulls back to one of a set of ratio levels between a swing low and a swing high.Read the guide →Indicators5 minTrade Trends with Heikin Ashi CandlesA Heikin Ashi strategy uses averaged candles to make trends easier to see and follow.Read the guide →Indicators5 minSpot and Trade RSI DivergenceAn RSI divergence strategy looks for moments when the price and the RSI disagree.Read the guide →

Intraday and price action

10 pages
Intraday and price action4 minUnderstand Rule-Based Gap TradingA gap happens when a market opens well above or below its previous close. Gaps reflect news, results or global moves that happened while the market was closed.Read the guide →Intraday and price action5 minAutomated Price Action & Volume Breakout AlgoA momentum breakout strategy buys stocks that break out of a consolidation or to new highs on strong volume, on the view that strength tends to continue.Read the guide →Intraday and price action4 minCombine Timeframes in a Trading StrategyA multi-timeframe strategy uses a longer timeframe to decide the direction of trades and a shorter timeframe to decide when to enter.Read the guide →Intraday and price action6 minAutomated Opening Bell Momentum Execution SystemThe opening range breakout, or ORB, is one of the oldest intraday strategies.Read the guide →Intraday and price action27 minOption Scalping StrategyScalping in option trading means taking many short trades in liquid index options, holding each for seconds or minutes to capture a few points of premium.Read the guide →Intraday and price action5 minDefine Support and Resistance Trading RulesSupport is a price level where buying has tended to stop a fall; resistance is a level where selling has tended to stop a rise.Read the guide →Intraday and price action5 minAutomated Swing & Delivery Stock Trading EngineSwing trading holds positions for a few days to a few weeks, aiming to capture one leg of a larger move.Read the guide →Intraday and price action4 minEvaluate Price Breakouts with Volume RulesA volume breakout strategy trades price breakouts only when volume confirms them.Read the guide →Intraday and price action5 minBuild Rules for the Open High Low StrategyThe open high low (OHL) strategy is an intraday setup popular with Indian stock traders.Read the guide →Intraday and price action5 minTrade Inside Bar Breakouts with Clear RulesAn inside bar strategy trades the breakout from a period of contraction.Read the guide →

Commodities

2 pages
Commodities24 minCrude Oil Trading in IndiaHow crude oil trading in India works on MCX: lot sizes, margin, the evening session, four rule-based strategies with model numbers, costs and automation.Read the guide →Commodities29 minGold Commodity TradingGold commodity trading in India happens mainly on MCX, where gold and silver futures follow international bullion prices converted into rupees, with India's…Read the guide →
Key point
A strategy here is a set of rules you choose, test and run yourself. The guides are education and give no trade calls or buy/sell advice.

Where to start

From guide to live trading

Any of these trading strategies should pass the same four steps before it places a live order:

  1. Build your version in the option strategy builder: legs, strikes, entry time, stop loss and target.
  2. Backtest it on past data, and allow for brokerage, taxes and slippage when you read the results.
  3. Paper trade it in virtual trading to see how it behaves in a live market.
  4. Go live from your own broker account, through the broker's official API, with your own API key, from a static IP linked to your broker account and after the broker's daily login with two-factor authentication. Self-built strategies must stay under 10 orders a second, and funds and securities stay with your broker.

Frequently asked questions

Are these ready-made strategies I can switch on?

No. Each guide explains a set of rules; you build your own version, test it and decide whether to run it. QuantPower's ready-made templates, such as straddles and iron flies, give you a starting point: load one into the strategy builder, change what you like and run it as your own strategy.

Do the guides cover MCX commodities?

A few do: the crude oil and gold and silver guides use MCX contracts. Most guides use Nifty, Bank Nifty, Sensex and NSE stocks.

How should I compare two strategies from these guides?

Test both on the same underlying, period and costs. Then compare maximum drawdown and the worst day as well as total profit, because a strategy that earns more but falls further is harder to stick with.

Why do the guides not show past profits?

Past results depend on the period, costs and exact rules you choose, and they do not predict future returns. The guides set out the rules and risks and leave the testing to you, on your own data and costs.

Sources

  • SEBI, circular on safer participation of retail investors in algorithmic trading, 4 February 2025
The strategy guides are for education and are not investment advice. Trading involves substantial risk.

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