Intraday Breakout Strategy !!!

Friends i am sharing a strategy for intraday traders.

Two days range breakout !!!

For example
note down the high and lows of nifty future of last two days (4 and 5 July, 2013).

4 July = High (5854.60) - Low (5781.00)
5 July = High (5904.80) - Low (5858.40)

Now trading range of 5 July is 5904.80-5858.40=46.40. calculate 10% of this range (4.64).

Here is entry points for 8 July, 2013:
Add 4.64 in both days High to go long (5904.80+4.64 = 5909.44)
Subtract 4.64 in both days low to go short (5781.00 -4.64 = 5776.36)

Profit Booking: PSAR/RSI or any other suitable indicator.
Stop Loss: high/low of 8 July respectively.

Friends i am waiting for your discussion/amendment on this strategy. Due to unavailability of resources i did not back-test this strategy. Can anybody do back-test and tell the results please.

I think the idea is great and should most definitely show good results ... You can probably do the calculation for the last 3 days as well and keep it handy ...

I think nseindia has a tool to back-test options trading, just like real-time trades that you do in your broker account ... Will share it on Monday