Bank Nifty Futures Trading Strategy – Part 4 – Risk Management

Bank Nifty Trading Strategy – Part 4 – Risk Management

In this part of video series on Bank Nifty Trading Strategy, I cover the topic of Risk Management. I begin by explaining the concept of Volatility and why it is important with respect to Stop loss and Position sizing. I then discuss some Money management rules in Trading and how to implement those. I finally take up the topic of Volatility based position sizing in Bank Nifty where in I show why volatility plays a critical role in determining position size in Bank Nifty. At the end of this video, I also explain the 2% rule in risk management. 2% rule states that trader should not bet more than 2% of his account size in any single trade. I finish off this video by summarizing our learning from the Part 1, Part 2, Part 3 of Bank Nifty video series.

In part 1 of video series on NSE Bank Nifty Trading, I covered Introduction on NSE Bank Nifty (Bank Nifty Instruments, Bank Nifty Lot Size, Bank Nifty Weightage, Bank Nifty Future) in detail. I have also shown how to procure Bank Nifty Historical Data, Bank Nifty Chart, Bank Nifty Market Profile Chart and Bank Nifty Relative Strength Chart.

In part 2 of video series on NSE Bank Nifty Strategies, I covered NSE Bank Nifty Relative Strength Analysis. I have also covered PSU Banks and Private Sector Banks Relative Strength Analysis with respect to Nifty and with respect to Bank Nifty in order to determine Strongest performing sector. Relative strength is one of the most under rated tools of Technical Analysis which is why I have covered this topic in a separate 3 part video series.

In part 3 of video series on Bank Nifty Future Trading, I cover the basics of Trend Analysis on Bank Nifty Chart. I begin by explaining the basic structure of Trend. I take up examples to demonstrate how Trending charts look. I then move to highlighting the importance of 200 day moving average in identifying overall trend of Bank Nifty. I also highlight why selecting the right time frame is critical in identifying Trend of Bank Nifty. In the end I show how Trend analysis is done on Public Sector banks and Private sector Banks and how this video fits within our framework of Bank Nifty Trading.

Weekly market analysis on Nifty 50 and Bank Nifty covers host of topics related to both Nifty 50 and Bank Nifty.

Link for both Part 1, Part 2 & Part 3 is posted below.


Bank Nifty – Part 1 – Basics

Bank Nifty – Part 2 – Relative Strength

Bank Nifty – Part 3 – Bank Nifty Trend


Volatility Based Stop Loss


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