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BTST STRATEGY

BTST STRATEGY

BTST  ( Buy today & sell tomorrow)  as the name suggest, you can buy today & sell tomorrow & gain the difference. But many clients use this simple tool as the strategy to ride in the bull market wave.

Let us understand few points

  • Buy in last hour & sell the same stock in the morning half an hour. No Intraday Exposure
  • Intraday trader sells his position between 2.30 to 3.30, BTST trader buys it to take the advantage of the same. BTST trader try to capture price difference arising out of Intraday  trader  buy & Sell
  • One can hedge/ increase/ decrease position, based on Market volatility.
  • Historically, it is proven that, if we do the same on the continuous basis, BTST trader Gets 3% – 7% yield on monthly basis.
  • One can pick up stocks based on stock criteria ( details in enclosed). We hedge the same by selling Nifty / Stock

 

Strategy

  • It is partly market Neutral Strategy.
  • The portfolio basket is divided into no of stocks to reduce the stock-specific & sector-specific exposure.
  • We try to generate the positive return
  • Depending on global market volatility we partly hedge the portfolio.
  • We pick up the stocks which is the flavor of the market & try to take price advantage when an intraday seller sells the same during last half & hour.
  • Stocks are chosen where there is no corporate (preferable) like. Bonus, Split, AGMs, etc

RISK

  • Though it is market neutral Portfolio, it is not an arbitrage product.
  • It is not a capital Guaranteed product. The risk is as high as 30% of Capital Employed
  • Overnight turmoil in the Global Market may affect the return

 

This is prepared as training literature & purely for educational purpose only. One may wish to understand more may contact me at bonpriya@gmail.com

Secondly, BTST is registered trademark product of ICICI Direct.

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