With 200+ strategy templates available on Momentum IQ, choosing where to start can feel overwhelming. This guide cuts through the noise and helps you find the right strategy for your situation in minutes.
Step 1 โ Know Your Trading Style
Before choosing a strategy, decide how long you want to hold positions:
| Style | Hold Duration | Time Required | Best For |
|---|---|---|---|
| Intraday | Minutes to hours | Full day at screen | Active traders, low overnight risk |
| Swing | 2โ10 days | 30 min/day | Working professionals |
| Positional | Weeks to months | 1 hour/week | Patient traders, larger targets |
If you have a day job, start with swing or positional strategies. Intraday requires constant monitoring during market hours (9:15 AM โ 3:30 PM IST).
Step 2 โ Choose by Market Segment
For NSE Equity (Stocks)
- EMA Crossover โ reliable trend-following, works well on NIFTY 50 stocks
- RSI Reversal โ good for range-bound stocks like banking and FMCG
- Supertrend โ excellent for trending stocks, clear entry/exit signals
For NIFTY / BANK NIFTY Indices
- MACD Signal Cross โ smooth signals on daily timeframe
- Bollinger Band Squeeze โ catches breakouts after low-volatility periods
- VWAP Reversion โ popular intraday strategy on NIFTY
For F&O (Options)
F&O strategies are available on Pro and Quant plans only. Options involve higher risk โ backtest thoroughly before trading live.
- Short Straddle on Expiry โ sell CE and PE on expiry day, profit from time decay
- Iron Condor โ range-bound strategy for low-volatility markets
Step 3 โ Match Strategy to Market Condition
| Market Condition | Best Strategy Type | Avoid |
|---|---|---|
| Strong uptrend | Trend-following (EMA, Supertrend) | Mean reversion (RSI) |
| Downtrend | Momentum short strategies | Buy-only strategies |
| Sideways / choppy | RSI reversals, Bollinger Bands | EMA crossovers (whipsaws) |
| High VIX (>20) | Options strategies (straddle) | Tight stop-loss strategies |
The Best 5 Starter Strategies
These strategies have proven themselves across multiple NSE market cycles and are ideal for beginners:
1. EMA 9/21 Crossover (Daily) โ Buy when EMA 9 crosses above EMA 21. Simple, reliable, works on most Nifty 50 stocks.
2. Supertrend (10, 3) Daily โ Buy when price closes above Supertrend line. Self-adjusting stop loss, clear signals.
3. RSI(14) Reversal (Daily) โ Buy at RSI below 30, sell at RSI above 70. Great for FMCG and banking stocks.
4. MACD Signal Cross (Daily) โ Buy when MACD crosses above signal line. Excellent on NIFTY 50 index.
5. Bollinger Band Breakout (Weekly) โ Buy when price closes above upper band after squeeze. Fewer trades, bigger moves.
What to Test First
- Pick one strategy from the list above
- Test it on NIFTY 50 daily data, 2019โ2024
- Check if CAGR > 20% and Max Drawdown < 25%
- If it passes, test on 3 more symbols to confirm it is not symbol-specific
- Only then consider trading it live โ start with small position sizes
