Make Money in Nifty Futures using Tunnel Trading

Simple method to Make Money in Nifty Futures

Make money in Nifty future using Tunnel trading is simple and easy method for any trader. You do not need to have a Trading software or need Technical Analysis knowledge to use this Tunnel Trading strategy. This is a universal trading technique which can be used in a Range bound or trending market. This is an Easy strategy to make money from Nifty Intraday Trading. Consistent profits can be made if you strictly follow the steps given below.

Is it really Simple method?

Everyone likes to have very complex algorithms and install expensive Technical trading softwares with numerous indicators to make profits from trading. My question is by using this science and technology, can anyone predict future. NO.. Every trader knows that, to win, you need to follow the trend. Always try simple methods, it makes your life more easy and less complicated.

Works in Range Bound and Trending Markets

In Range bound markets there won’t be any strong moves in the Nifty futures, but this technique can also be used in range bound market to make money in Nifty Futures. Even if there is a strong move, you can apply this same technique of Tunnel Trading.
As the name “Tunnel” indicates, the strategy is literally similar to that.

How to trade Nifty Futures using Trading Tunnel?

Let us suppose that Nifty has moved from 7610 to 7620. Usually normal trades will jump-in to catch the bus by placing their buy order on nifty future. Most of them will be able to catch it when it reaches 7630 or 7640, by then it may have started its downtrend which can end up booking losses. Tunnel trading will save you from these kinds of frequent losses.

Never catch a Running Train

My advise would be do not try to catch a running train, it can be dangerous or fatal. It is applicable to Trading also. Never try to catch a move which is already on the momentum. If you have missed the opportunity, leave it. Be happy that you did not make a loss by catching a fast moving trend.
Instead of catching that move wait for a reversal. In trading most of the sudden moves ends up with a reversal.

3 Successful Simple steps for Entry and Exit using Tunnel Trading

1. Enter only when a move starts after a consolidation

2. Strict small stoploss is required, if you have made a wrong entry

3. Exit (book profits) when the prices not able to cross the previous high

Nifty Future Trading Example

Following Chart will demonstrate the tunnel trading technique used to make money in Nifty futures.

If you have any queries about this strategy, post your comments below :

Tunnel Trading details can also be found here