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Supply and Demand Trading on the Nifty

As I've mentioned in numerous articles, Supply and Demand is a Law of Nature. Supply and Demand trading strategies (such as Sabre) work on all timeframes and all asset classes.


I received a question from several people this week about whether Sabre would work on the Nifty, (a.k.a. The Nifty Fifty), an Indian index much like the S&P here in the States.


Does Sabre work on the Nifty? Indeed it does! The Nifty is just another product in just another market just like everything else you can trade.


Assuming one was trading the Daily chart, the Nifty provided four opportunities to trade via Sabre over the course of the last 12 months, and all four were profitable:

The first trade fell under the category of a "Sculler" where we can use a trailing stop strategy to "let your winners run" where we can secure more and more profit as the price "runs" (or sculls) to where it eventually will turn. In this case, it was an 18.7R win. The other three trades garnered a modest 3.05, 3.52, and 4.78R, for a total of 30R for the year.


The example above also shows one of the strengths of the Sabre Trading System - the ability to find where a trending market may be ready to turn - what we call The Clubhaul in Pirate-Speak. Where the Buy-and-hold trader would have started to lose money in mid-February, the Sabre Trader would have realized three profitable trades.


So here we see again, no matter what the market (companies, commodities, or currencies) or what the product (Tesla, Oil, Soybeans) Supply and Demand Trading is a solid methodology to generate reliable income from the financial markets.

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