Nifty 50 (EOD) MSA Line for momentum investing
MSA Line provides strong and robust indicators for entry and exit points and is based on the theory of momentum and mean reversal.
Further, if MSA clubbed with RSI line that represents the difference in RSI of two different periods (14 and 5 days in the present case), it strengthens the investment decision.
The Trading rules followed are very simple to use and are as follows:
MSA (Market Statistical Arbitrage) line generates the SA Value that ranges from POSITIVE (over bought, if above 10) to NEGATIVE (over sold, if above -10).
The quantity to be traded is based on the SA value as follows:
SA value of 10.00 and above =1
SA value of 12.50 and above =2
SA value of 15.00 and above =3
SA value of 17.50 and above =5
SA value of 20.00 and above =8
SA value of 22.50 and above =13
SA value of 25.00 and above =21
The MSA based strategy (as explained above) on Nifty 50 generated 49.87% return since 05 January 2022 to 23 September 2022 (Nifty return negative 3.35% during this period).
Further, if MSA clubbed with RSI line that represents the difference in RSI of two different periods (14 and 5 days in the present case), it strengthens the investment decision.
The Trading rules followed are very simple to use and are as follows:
MSA (Market Statistical Arbitrage) line generates the SA Value that ranges from POSITIVE (over bought, if above 10) to NEGATIVE (over sold, if above -10).
The quantity to be traded is based on the SA value as follows:
SA value of 10.00 and above =1
SA value of 12.50 and above =2
SA value of 15.00 and above =3
SA value of 17.50 and above =5
SA value of 20.00 and above =8
SA value of 22.50 and above =13
SA value of 25.00 and above =21
The MSA based strategy (as explained above) on Nifty 50 generated 49.87% return since 05 January 2022 to 23 September 2022 (Nifty return negative 3.35% during this period).
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