5 commonly used intraday trading strategies

Intraday trading involves the execution of intraday strategies to profit from price changes of an asset. The success of intraday trading depends on a lot of factors—the right strategy, the right mindset, skill, knowledge, and even market conditions, among others.

Further, to get intraday strategies right, one needs to be patient, dedicated, and have the requisite knowledge. However, a few strategies have become popular over time among Indian stock traders.

Although it takes a considerable time to become an expert at intraday trading, here are some commonly used trading strategies in India that should help you get started:

1. Momentum Day Trading Strategy

The best part about day trading is that it allows you to play with volatile market conditions, which can be best exploited using momentum trading strategies. Momentum trading involves buying securities that are rising and selling them when they begin losing momentum.

The motto of momentum trading is simple: ‘Buy high, sell higher’. In momentum trading, traders pay attention to stocks that are particularly going in the upward direction and are trading in high volume. This strategy is popular in India as there is at least one stock that moves 23-30% every day. These strategies are also easy to understand for beginners. The strategy can provide a favorable risk/reward ratio of 1:3 or 1:2.

Try the TRIX Momentum strategy now with PHI1…


self.trix = Trix(self.data,period=15)

self.signal = EMA(self.trix, period=9)



if (self.trix[0] > self.signal[0]) and (self.trix[-1] < self.signal[-1])  and (self.position.size==0):



if (self.trix[0] < self.signal[0]) and (self.trix[-1] > self.signal[-1]) and (self.position.size > 0):



if (self.trix[0] < self.signal[0]) and (self.trix[-1] > self.signal[-1])  and (self.position.size==0):



if (self.trix[0] > self.signal[0]) and (self.trix[-1] < self.signal[-1]) and (self.position.size < 0):


READ :   3 Trading Strategies You Can Code and Backtest on PHI 1 Right Now

2. Reversal Trading Strategy

Reversal strategy, also known as pullback or trend trading, involves trading against trends, that is, it aims to profit from a reversal of trends in the market. This ideally requires a good knowledge about the market and experience in trading as it involves identifying pullbacks.

A pullback is a pause/slight decline in a security’s price from recent peaks that have occurred within a continuing uptrend. Price and volume are two main indicators of a trend reversal, and a trader must know how to read them well.

This strategy provides a good risk to reward ratio (1:3 or above). This strategy involves seeking stock prices that are extremely high and those that have a good snapback potential, and is, therefore, popular.

However, it may be slightly difficult for beginners to use initially given that the identification of pullbacks takes time, skill, and expertise.

Try the reversal trading strategy with this code on PHI 1 now:


self.aroon = AroonOsc(period=25)




if ((self.aroon[0] + 90) < 0):

self.downtrend=self.downtrend + 1


if (self.aroon[0] > 0) and (self.position.size==0) and (self.downtrend > 0):



if (self.aroon[0] < 0) and (self.position.size>0):



3. Breakout Trading Strategy

Breakout trading strategy is among the most widely used strategies in India. Breakouts occur when the price of a security goes beyond a defined support or resistance level along with a rise in volume.

Breakouts make for an important trading strategy because they mark the start of rising future volatility, huge price swings, and even major price trends.

This strategy is based on observation, wherein the trader identifies the right time when the stock price rises above or falls below specific levels. Thus, timing is of the essence when using this strategy.

Breakout trading strategy can be quite risky as it involves quick and aggressive entry and exit. Further, as a lot of traders may be buying the same stock, hardly anyone may be left to buy these stocks after the traders have got in, making it difficult to exit the stock.

Try this Turtle-style breakout trading strategy code on PHI 1 now:


class DonchianChannels(bt.Indicator):

lines = (‘dch’, ‘dcl’,)  #dc high, dc low

params = dict(


lookback=-1,  # consider current bar or not



def _init_(self):

hi, lo = self.data.high, self.data.low

hi, lo = hi(self.p.lookback), lo(self.p.lookback)


self.l.dch = bt.ind.Highest(hi, period=self.p.period)

self.l.dcl = bt.ind.Lowest(lo,  period=self.p.period)


self.donchian = DonchianChannels()


self.count1 = 0



if (self.data.close[0] > self.donchian.dch[0]) and (self.position.size==0):


if (self.data.close[0] < self.donchian.dcl[0]) and (self.position.size>0):


if (self.data.close[0] < self.donchian.dcl[0]) and (self.position.size==0):


if (self.data.close[0] > self.donchian.dch[0]) and (self.position.size<0):


4. Mean Reversion Strategy

Mean reversion is a strategy based on the theory that asset prices and historical returns eventually revert to their long-time mean/average level. Thus, the assumption is that prices will return to average levels when the market deviates too far from the mean.

Basically, when the ‘too far’ away price begins returning to average levels, traders make a trade in the direction of the average. Bollinger bands are a handy tool for using this strategy.

The mean-reversion strategy works well in a regular market environment given that stocks generally move in a range, especially if there is no major news or market mover at play. The mean-reversion strategy has a higher frequency of use but low-profit expectations compared to the momentum trading strategy.

Try the mean reversion trading strategy with this code on PHI 1 now:


self.boll = BollingerBands(period=21, devfactor=2)

self.count1 = 0


curr_date = self.datetime.datetime(ago=0)


if risk_control_window(curr_date):


if (close < self.boll.lines.bot) and (self.position.size==0):



if (self.position.size > 0):

self.count1 = self.count1 + 1


if (close > self.boll.lines.top) and (self.position.size>0) and (close[0] > close[-self.count1]):


self.count1 = 0


if (self.count1 > 4) and (close > self.boll.lines.mid) and (self.position.size>0) and (close[0] > close[-self.count1]):


self.count1 = 0


if (self.count1 > 4) and (close[0]/close[-self.count1] > 1.02) and (self.position.size>0):


self.count1 = 0


if (self.count1 > 4) and (close[0]/close[-self.count1] < 0.98) and (self.position.size>0):


self.count1 = 0


if (self.count1 > 10):


self.count1 = 0

5. Scalping

Scalping means making as many small profits as possible off small price changes. This requires a trader to have a proper exit strategy with all the resources in hand to act quickly. Scalping, thus, focuses on ‘increasing the number of wins and compromising on the size of the wins.’

Scalping is profitable for traders who use it as their primary strategy and sticking to a strict exit strategy. Further, it is best not to carry the trade to the next day. For Indian stock traders who prefer short-term trading with relatively low risk, scalping can be a good strategy to make small profits that can be compounded into larger gains.

Want to try out Scalping? Run the same Mean Reversion strategy code on a minute scale.

Now that we have seen the most popularly used trading strategies by Indian stock traders, you may be keen on trying them. However, executing trades one by one by identifying opportunities manually is not what you would want to spend all your time on.

At the same time, the market is full of opportunities and many tools can help you focus on the more important things. Algorithmic trading allows you to trade automatically based on your pre-defined instructions. However, most software are standalone and require you to have complex coding knowledge, making trading a cumbersome process.

With PHI1, you can not only create and implement the above-mentioned trading strategies but also explore exotic strategies limitlessly. Further, after having created your strategies, you can conduct backtesting on them.

You can also perform bulk testing and scenario grading, all of this in the same place. PHI1 thus eliminates the need for multiple tools. PHI1 also gives you the freedom to choose your broker via its multi-broker integration feature.

When you use PHI1, the choice is always yours, and intraday trading feels like a breeze. Enjoy complete trading freedom with PHI1- your enabler for superior intraday trading.

Take a free trial today !


(Disclaimer: The purpose of sharing these strategies is purely educational. Please do not consider these for investment purpose)

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7 reasons why PHI 1 is perfect for Intraday Traders

As the world moves towards automated trading, much of the hassles that come with manual trading like constant monitoring, excessive time consumption, and emotional bias are being done away with. With the rising popularity of algo trading, Intraday traders today have multiple trading-related tools at their disposal.

But, rather than creating a convenient environment, just as too many cooks spoil the broth, too many tools often distract traders from their main task of trading.

As no tools are available that constitute a one-stop solution to systematic trading, these multiple tools need to be integrated to complete the trading process. This shifts the focus of the trader from exploring profitable opportunities in the market to handling mundane tasks.

This exercise results not only in the waste of time and effort but also opportunity loss, directly affecting the trader monetarily.

Not only that, robust, well-proven tools also come at a high cost and most require knowledge of complex coding and languages.

Keeping in mind the hassles of using multiple tools, what intraday traders need is a comprehensive software that handles the entire trading process. PHI 1 can be the perfect enabler for intraday traders considering this aspect. 

Here are 7 compelling reasons why PHI 1 is perfect for intraday traders:

1. Advanced Charting Allows For Detailed Analysis And Saves Time:

PHI 1 comes with advanced charting features and offers more than 120 indicators for free. Intraday traders can also access real-time and historical charts with PHI 1.

How does this benefit the trader? Traders can plot many indicators for live updates. They can also seamlessly analyze multiple facets of a stock, and free themselves from everyday hassles of data integration.

Further, PHI 1 provides pre-integrated data for all symbols including equity, indices, futures, and options.

This saves a lot of time and effort spent on data integration. The trader is also assured of accuracy of data and can use the saved time to spot opportunities in the market.

2. Sit Back & Relax While Your Tried-And-Tested Strategy Plays Itself Out:

PHI 1 allows traders to automate their trading strategy so they can sit back and relax. How? Traders can create any type of trading strategy with PHI 1, even if it is just an arbitrary idea.

Unlike most other platforms, PHI 1 allows the creation of custom strategies outside of templates. PHI 1 offers several testing options as well.

With PHI 1’s Multi-symbol Strategy Creator, the built-in data allows traders to monitor multiple symbols/time intervals/asset classes in a strategy to make trading decisions on one or more of them.

Traders can, thus, create, test, and analyze multiple symbols/instruments with minimal effort. Traders can come up with innovative strategies in just a matter of minutes.

These trading strategies once tested can be implemented automatically, preserving discipline and eliminating emotional biases or impulsive decisions. Once finalized, the system will execute orders as per the strategy.

3. It’s On The Cloud!

PHI 1 is a cloud-based software. This means intraday traders do not have to go through the hassle of download or installation.

They can simply plug-n-play the software. Having everything—right from their data to saved strategies–ready can be a major relief for traders. All their data is also securely saved on the cloud.

4. Your Data Is Yours Only:

Your data such as strategies, trades, portfolio, and reports are encrypted and totally safe. Your data is only visible to you, which provides the added benefit of privacy and security.

5. Create Advanced Strategies Limitlessly:

PHI 1 offers an Advanced Strategy Creator which allows traders to create any type of strategy they can imagine of—no restrictions.

This gives scope to the trader to experiment more and more strategies and spot more trading opportunities.

What’s more, PHI 1 provides robust support via documentation. This includes comprehensive coding guidelines. Additionally, our support team is also there to assist you with coding strategies.

6. Backtesting Ability In Multiple Market Scenarios:

Very few tools are currently available for bulk backtesting, which is essential to determine scenarios where the strategy might underperform.

PHI 1 goes a step ahead to provide bulk backtesting along with auto-analysis of strategy performance. Thus, traders get a score on their strategies in a variety of market scenarios such as volatility, market crash, trending, and so on.

This minimizes the risk of trades, and the trader can choose the best strategy to execute whatever the scenario. The result: stress-free trading!

7. Experience The Ease Of Execution With Multi-Broker Integration:

PHI 1 comes with the benefit of multi-broker integration. This means a trader is free to select a broker of his/her choice from a list of available options. This also enables the trader to get the best rates while placing orders.

Moreover, even if one broker’s service is down or the trader does not have enough margin, they can always place trades through another broker. Never miss another opportunity again!

At the core of it all, perhaps, is PHI 1’s endeavour to ascertain ‘freedom’ to intraday traders.

The freedom—to pursue limitless strategies, to spot unlimited trading opportunities, and above all, to only focus on the real deal, and not everyday mundane tasks.

Imagine this – instead of spending every market day staring at your trading screen, you can spend your day trying out new and better strategies while your automated system executes your working strategy flawlessly without you doing anything. Well, with PHI 1, you do not have to imagine!

PHI 1 empowers traders throughout their trading journey via its all-in-one, powerful algo trading platform.

With the ease of use and the scope of scale that PHI 1 offers, it makes perfect sense to try PHI 1!

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