Closed all the trades at breakeven, Nifty still consolidating

This month, we deviated from the standard rules of trading our MHAF strategy due to an error described in the previous blog post. We were waiting for an opportunity to exit all open trades without incurring significant losses. Analyzing a shorter timeframe chart, we believed the short-term trend was bullish. Since we had a positive position delta, we thought it wise to wait for Nifty to reach the 23830-40 zone again.

Yesterday, Nifty provided an opportunity by retesting 23830 in the early morning session. We closed our positions at nearly breakeven, despite major mistakes, a gap down, slippage, and extreme volatility throughout the month. This demonstrated the resilience of this strategy in withstanding significant adverse situations that occasionally occur, making it extremely challenging to follow a strategy with 100% accuracy. Through timely adjustments while keeping the position delta minimal, we managed to contain the risk to some extent. However, if the final adjustment hadn't produced positive results, we could have faced significant losses in this month's series.

As illustrated earlier, despite incurring a loss of Rs 39,000 from Nifty futures after multiple trades throughout the month, this was offset by the short option trades we executed. The chart above indicates that while Nifty has closed above the EBL/EBR bands and the MHAF candle appears as a moderately strong green one, Nifty does not yet exhibit sufficient strength to turn bullish.

Since the current May series is still ongoing, we will not initiate any new trades at this time. However, the spreadsheet above suggested that a bullish trade was only feasible if Nifty had closed above 23790 yesterday. Consequently, it can be concluded that Nifty remains in a consolidation phase with a positive inclination. We are anticipating the start of the June series next week to identify a new trading opportunity.

It is also noteworthy that since we began implementing this strategy in December 2025, we have not encountered a single losing month, which is quite remarkable.

Cheers and happy trading