Gap Up Low Break [ GULB ] Profitable Option Trading Strategy For Beginners

Friends stock market is such a well that can quench the thirst of money of whole world. This is because the top student of US select to go to the wall street after completing their degree. 

Same thing applied in India also. But the journey of becoming profitable is not so easy. It need consistency and learning. That is rewarded with time and practice. 

Today we will discuss GULB strategy or Gap Up Low Break Strategy developed by Mr Satendra Kumar a professional trader and founder of Asset Guide YT channel.

Gap Up Low Break Strategy [GULB Strategy] is beneficial for all beginners as well as experience traders suffering regular loss and losing money.

So, let's se what is GULB strategy:

Gap Up Low Break [ GULB ] Profitable Option Trading Strategy For Beginners 

 

We are discussing this strategy for Nifty 50 Options trading. You may use this for Bank Nifty, Fin Nifty and other index as well with your own experience. But try after enough practice.

So, what is GULB Strategy? Well GULB is the short form of Gap UP Low Break.  In this strategy we look for the gap up opening on market.

In nifty 50 market should be at least 80 to 100 points gap up. Now apply 5 Min time frame in your trading software like KITE Zerodha, AngelOne etc.

 

Wait for the first 5 minute candle formation. After the candle fully complete check the candle type. If candle is shooting star or Pin bar then buy put. If candle is Morubozu or other similar type, then wait for the next candle formation.

When second, third, or fourth 5 Min candle break the Low of first 5 Min candle, then buy the Put.

This strategy is very powerfull with less 10 points Stop Loss and target will be approx the GAP points. 

Suppose the gap opening is about 80 points then market will give you 10 points in put. With a single lot you may capture at least 50 points in Options Trading.

If you capture 50 points then your profit with single lot will be 50X50 = 2500.

Suppose the premium price is about 50 to 100, then your investment will be approx 2500 to 5000 or average 3500. 

So, you can make 2500 rupees by just investing 3500 rupees in option market.

GAP UP Low Break Strategy GULB Terms And Conditions

As we all know chart pattern and trading strategies are not 100% accurate. If any strategy or pattern perform 60% accuracy, then it is considered very much profitable.

Our Gap Up Low Break strategy shows results more then 70% accurate. It may be because the formation of chart and application of strategy.

Let's see some terms and conditions that makes it more accurate compared to other market parameters. 

• Market should be at least 80 points to 90 points gap up. More gap up is more accurate.
• Market should perform a 1 to 2 hours consolidation on last day or after market gap up opening.
• Target should not be considered more then gaping points.
• If market open about 100 points gap up then target will be approx 90 to 95 points.
• Traders should follow the entire market and index components.
• Suppose whole market is going up then Gap Up Strategy may not work in the same direction.