BTST: Active Trading Strategy

BTST: Active Trading Strategy

Introducing BTST, a trading model that provides Buy Today Sell Tomorrow stock trading signals 2-3 times a week. This model aims to capture trend persistence in stocks and find those whose price trend is likely to continue into the next trading day.

In this post, we'll delve into the key features and benefits of BTST, providing insights on how it can complement your existing strategies.

What is BTST?

BTST is a positional, high-volatility trading model that utilises a trend following and long only strategy. This model finds stocks on the move, with the highest odds for trend continuation and selects them as trading signals. You buy the stock at closing hours and exit it the next day at open, capturing the trend persistence in stocks.

How does it work?

The model filters out trending stocks, and selects the ones with the highest odds for trend continuation. By buying the stock at closing hours and exiting it the next day at open, it captures the trend persistence in stocks. The concept of trend persistence states that once a stock starts going up, it continues to do so for a while.

Is BTST suitable for me?

BTST is suitable for investors who have short-term trading capital and are available at the close and open times of the market.

Note: The model is based on short-term market movements and requires active monitoring and quick decision making. The returns generated by this model may be high, but they also come with a high level of volatility. Investors should be aware that the BTST model is not suitable for long-term investments and should only be used with a clear understanding of risk appetite.

Kindly conduct thorough research, consult a financial advisor and fully understand the risks before committing to the strategy.

Model performance

The returns stated below are calculated on a base capital that includes a 30% reserve that earns no returns.





Total trades - YTD


Average win


Average loss




Sharpe ratio


Model beta


Biggest winner


Biggest loser


Max winning streak

11 trades

Max losing streak

9 trades

Recovery time (Max losing streak)

85 days

Max drawdown


Recovery time (Max drawdown)

266 days

Max streak without signals

87 days

*Backtest period for Performance Metrics is Jul’ 2015 to Aug’ 2022.

Calendar days in all day metrics; returns include slippages; and the model has a regime filter.

Frequently Asked Questions:

How is BTST different from other trading models?

BTST captures trend persistence in stocks by providing Buy Today Sell Tomorrow stock trading signals 2-3 times a week.

What are the chances of success with BTST?

The model is designed to work well in trending markets. However, in a sideways market or downtrends, there won't be any stocks that pass through the model criteria.

What is the minimum capital requirement?

The minimum capital requirement for BTST is ₹25,000.

How often do I need to act on signals?

It is recommended that you act on 2 signals per day.

How long should I subscribe for?

A minimum period of 1 year is recommended for optimal results.

Final thoughts

BTST is a valuable addition to any investor's portfolio. It requires lower effort as traders only have to be available at the close and open times of the market. It's interesting to note that BTST outperformed NIFTY Buy and hold in both 2020 and 2021, demonstrating its effectiveness in capturing trends in the stock market. If you have short-term trading capital and are available at the close and open times of the market, this model may be suitable for you.

Disclaimer: The information provided in this post is for general informational purposes only. It should not be considered as financial or investment advice. Please conduct your own research and consult with a financial advisor before making any investment decisions.

Past performance is not indicative of future results and all investments involve risk.

The authors and the company they represent do not guarantee any specific outcome or profit.