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Delivery Based Trading

Delivery Based Trading

Beginner Daily

A beginner trading strategy well-suited for NSE markets. Uses systematic, rule-based logic to identify high-probability entry and exit points with defined risk on every trade.

Complexity
Beginner
Easy to implement
NSE Suitability
High
5.2 / 10 score
Timeframe
Daily
Short to medium term
Best For
Beginner Traders
5–15 days moves
Indicators Used
2
Price Action, Volume
Win Rate (Backtest)
37.5%
Below 50% threshold
Avg Return / Trade
+0.16%
Per trade, after costs
Max Drawdown
-1.1%
Within typical range
Trades / Year
8
Small sample — interpret with caution
About the Delivery Based Trading Strategy
Delivery Based Trading is a swing strategy that capitalizes on sustained directional moves in NSE-listed stocks by identifying accumulation and distribution patterns through price action and volume. The strategy captures multi-day trends where institutional and retail participants take actual delivery of shares, indicating conviction in their positions rather than intraday speculation.

This approach is particularly suited to NSE equities because the exchange's T+1 settlement cycle and robust liquidity in mid and large-cap stocks create predictable volume signatures. Morning opening gaps and intraday volatility during the 9:15-10:30 AM and 3:00-3:30 PM sessions often precede days where volume confirms directional intent, making these windows valuable for entry identification.

The strategy looks for setups where price consolidates near support or resistance levels while volume gradually increases, suggesting accumulation by informed participants. A breakout on elevated volume—particularly when occurring on higher than average turnover relative to the stock's typical range—signals the beginning of a deliverable move. Exit signals emerge when volume dries up or when price rejects higher levels on declining volume, indicating distribution completion.
Who This Strategy Is For
This Beginner strategy suits Beginner Traders comfortable with a Daily timeframe and holding periods around several days. It's built for the Equity segment on NSE, so it fits traders who can check positions without needing intraday execution speed. Because it uses a small, well-known set of indicators, it's a reasonable starting point if you're new to systematic NSE trading.
Equity Curve (Backtest) HIGH QUALITY
Tested on: MARUTI  ·  2024-05-13 to 2026-06-30
Total Return
+1.3%
CAGR
0.7%
Sharpe Ratio
0.7
Sortino Ratio
1.05
Calmar Ratio
0.64
Win Rate
37.5%
NSE Market Fit
5 OUT OF 10
Moderate Fit
This strategy is well-suited for current NSE market conditions.
Win rate quality Needs Caution
Risk-adjusted return Excellent
Drawdown control Excellent
Trade frequency (sample size) Needs Caution
Sharpe ratio Good
Monthly Returns Heatmap
202420252026
Jan — — +0.9%
Feb — — —
Mar — — —
Apr — -0.5% —
May — — —
Jun — — —
Jul — -0.4% —
Aug — +0.9% —
Sep +0.6% — —
Oct — — —
Nov — — —
Dec -0.2% — —
Positive return Negative return
Performance vs Nifty 50
Nifty 50 comparison isn't available for this backtest period yet.
Trade Distribution
8 Total
Profitable 3 (37.5%)
Losing 5 (62.5%)
↑ Avg Win +846
↓ Avg Loss -246
★ Best Trade +922
▼ Worst Trade -501
Returns Distribution
Recent Backtest Results
Period Symbol Capital Total Return CAGR Max Drawdown Win Rate Trades Sharpe Ratio View
2 Years (2024–2026) MARUTI ₹100,000 +1.3% 0.7% -1.1% 37.5% 8 0.7 View
💡 Tip: Backtest on more data to increase confidence. Our users get best results with 3+ years of backtesting. Run Extended Backtest
How It Works (Quick Overview)
1
Step 1
Identify the market context — determine if conditions are trending or ranging, and confirm the higher timeframe direction
2
Step 2
Wait for the specific entry signal defined by the strategy rules — do not enter without full confirmation
3
Step 3
Execute with pre-defined stop loss and target — manage the trade according to the exit rules without discretionary override
View Detailed Rules & Setup →

Best Market Conditions

This strategy performs best in:

How This Strategy Works
1
Identify the market context — determine if conditions are trending or ranging, and confirm the higher timeframe direction
2
Wait for the specific entry signal defined by the strategy rules — do not enter without full confirmation
3
Execute with pre-defined stop loss and target — manage the trade according to the exit rules without discretionary override
Entry & Exit Rules
Risk Management Rules
Risk Per Trade
1.0%
of total capital
Min Capital
₹30,000
Hold Period
5–15 days
Segment
Equity, Futures
Common Mistakes to Avoid
⚠️ With multi-day holds, the main risk is overnight/weekend gap risk on NSE — position sizing should account for gap moves, not just the intraday stop distance.
Full Backtest Report

Backtested on MARUTI · 2024-05-13 to 2026-06-30 · Capital ₹100,000

Equity Curve

Live tracking coming soon

We're building forward-tested, paper-trade tracking for this strategy so you can see how it performs on live NSE data — not just historical backtests. Check back soon.

No sample trades added yet for this strategy.

Strategy Parameters
ParameterDefaultMinMaxTypeDescription
min_delivery_pct 50 30 90 decimal Minimum delivery % of volume to qualify stock
trend_ema 50 20 200 integer EMA to confirm bullish trend for delivery buying
hold_days 5 2 30 integer Minimum days to hold delivery position
atr_stop 2.0 1.0 4.0 decimal ATR multiple for stop loss
Frequently Asked Questions
Delivery-based trading involves buying stocks and taking actual ownership (delivery) rather than squaring off the position within the same day. It requires full payment upfront (no leverage like intraday MIS orders) and is taxed differently — short-term or long-term capital gains rather than business income for frequent intraday trades.
Look for stocks showing delivery percentage above 50% of total traded volume — this indicates genuine investment interest rather than pure speculative trading. Combine with technical breakouts above key resistance and fundamental improvement (earnings growth, sector tailwinds) for higher-conviction delivery-based positions.
Most delivery-based momentum trades target a 2-8 week holding period to capture a meaningful technical move while staying within short-term capital gains treatment (under 12 months). Longer-term delivery investors hold 12+ months to benefit from lower long-term capital gains tax rates on equity (currently more favorable than short-term).
NSE publishes daily delivery percentage data showing what portion of traded volume resulted in actual delivery versus intraday squaring off. A sudden spike in delivery percentage alongside price strength signals genuine institutional or long-term investor accumulation, a more reliable signal than price action alone.
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SEBI Compliance Disclaimer

MomentumIQ is an educational platform for strategy research and backtesting. We do not provide investment advice, recommendations, or tips. All backtest results are hypothetical, based on historical data, and for educational purposes only. Past performance is not indicative of future results. Backtested results may not account for brokerage, slippage, taxes, or other real-world costs. Please consult a SEBI-registered investment advisor before making any investment decisions.