Derivative Trading Strategy of Bank Nifty - A Heuristic Model

The primary objective of this paper is to provide small retail traders with a heuristic model in the form of a derivative trading strategy. It is an effort to design an easy and effective derivative trading strategy for retail traders who often lose money in the stock market as a result of insufficient information and ineffective trading methods. We have developed an observational technique that is based on the study of candlesticks that we conducted as part of our research. We tested our technique using bank nifty data for the last five years and found that it had a 60 percent accuracy rate, which is very impressive. Profits rose year after year when this method was used in the trading environment. Additionally, forecasting is also done for the next five years using the linear regression prediction model, with the method achieving an accuracy rate of 60 percent. We were able to demonstrate statistically by using the One-way Anova Test and found that, there is a significant correlation between actual data and predicted data