Up next in 10
A lot of new members in our FabTrader community have been asking me how to get started with trading — especially without diving into high-risk futures and options. So, in this video, I’m sharing a strategy I personally use: the NIFTY SHOP strategy.
✅ Built around NIFTY 50 stocks
✅ Simple rules, executed in 10 mins a day
✅ No stop loss. No complex indicators.
This is not just theory — I’ve run this in my live account for over a year with consistent results. And the best part? It helps you grow wealth slowly, steadily, and with far more peace of mind than high-risk F&O plays.
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0:00
Hello everyone. Welcome to Fat Trader.
0:02
I've been meaning to have this
0:03
conversation for a while now because
0:05
over the past uh few months, I've been
0:07
getting a steady stream of messages from
0:09
beginners, part-time traders, and even
0:11
some long-term investors all asking the
0:13
variation of things the same question,
0:14
which is, I want to start trading, but I
0:16
don't know, you know, I don't want to
0:17
blow up my account. So, how do I begin
0:19
safely? Right? It's actually a really
0:21
good question, and I'll be honest, I
0:22
wish more people asked it. Right?
0:24
Because what I'm seeing a lot these days
0:25
is people are jumping straight into
0:26
high-risisk strategies. They're trading
0:28
weekly options, trying complex spreads,
0:30
following the the so-called gurus who
0:32
post huge profit screenshots and never
0:33
talk about, you know, the risk or the
0:35
draw downs associated to it. And the sad
0:37
part is many of these folks haven't even
0:39
built the basics yet, right? No clear
0:40
framework, no position sizing, no risk
0:42
management. Usually just wibes and
0:44
volatility. If that sounds like you,
0:46
first of all, don't feel bad. We've all
0:47
been there. The market is designed to
0:49
pull you uh you know uh in with the
0:50
promise of fast money. But what it
0:52
doesn't tell you is that slow, steady
0:54
money is often more powerful and that's
0:56
more sustainable, right? And that's
0:58
exactly what I wanted to talk to you
0:59
about today. Uh a strategy that I've
1:01
personally been running for over a year
1:02
now. One that doesn't require you to sit
1:04
in front of a screen all day. Uh one
1:06
that doesn't need FNO leverage or even
1:08
complex setups. Right? I call it the
1:10
nifty shop strategy. Uh it's simple,
1:12
it's systematic, and has given me
1:13
consistent results not just on paper but
1:16
with real money. Right? And if you stick
1:17
around for the next few minutes, I'll
1:19
walk you through exactly how it works,
1:20
what rules I follow, and why I believe
1:22
this might be one of the best ways to
1:24
trade for beginners and a conservative
1:25
traders alike.
1:27
uh if you know Fab Trader channel, you
1:28
know, we we back test a lot of fresh
1:30
strategies. However, in this case, I'm
1:31
not going to be back testing it, but I'm
1:33
going to be sharing the real results
1:34
from my own trading uh you know, this
1:36
strategy for the last 1.5 years, right?
1:38
So, I'm sure you're excited. Let's get
1:39
started.
1:41
If this is your first time here,
1:42
welcome. My name is Vive and I'm a
1:44
financial independent algo trader. This
1:45
channel is all about building a
1:46
community of algo traders. We discuss
1:47
everything about a trading using Python,
1:49
building and practicing trading
1:50
strategies, market updates, much more.
1:51
Please do visit our community website
1:53
fabtrader.in. Also do check out my other
1:54
YouTube channel Fab Wealth, where I talk
1:56
about my own financial independence
1:57
journey and share tools, methods, and
1:58
strategies that help me achieve my
2:00
financial flow. Thank you. Now, if
2:02
you're someone who's serious about
2:03
building wealth, not just uh, you know,
2:04
chasing thrills, let me tell you about
2:06
something that's worked incredibly well
2:07
for me. Uh, it's a strategy that I've
2:09
personally run for over a year now. It's
2:10
called the nifty shop strategy. It's
2:12
simple, it's robust, and it's
2:13
surprisingly effective, especially who
2:15
who those want to keep, you know, kind
2:17
of the risk low, effort minimal, and
2:18
also the results decent. Right. So, the
2:20
full credit here goes to Mr. Maheshandra
2:22
Koshik. is one of uh you know the he's
2:24
he's the one who originally shared this
2:26
concept on YouTube and he's he's uh he's
2:28
brilliant right so I've taken the core
2:30
idea added my own little tweaks uh and
2:32
discipline to it and I built a strong
2:34
consistent track record also with it
2:35
right you might find multiple variations
2:37
of this nifty shop on YouTube however
2:38
the the core idea is mostly the same
2:40
with just a few tweaks right so I also
2:42
run a different version of the the same
2:44
strategy which I'll cover in a separate
2:45
video so watch this space subscribe to
2:47
the channel if you haven't already and
2:49
stay connected okay a quick note before
2:52
we go deeper this It's not investment
2:53
advice. The video is purely for
2:55
educational purposes only. And what
2:56
worked for me, you know, might not work
2:58
for you unless uh you you truly
3:00
understand the logic. Do your own back
3:01
testing. And most importantly, trade
3:02
with responsibility. All right, let's
3:04
talk about why the strategy works,
3:06
right? First, we dealing only with the
3:08
nifty50 stocks. These are, as you know,
3:10
the India's biggest and most stable
3:11
companies. Think of uh you know, TCS,
3:14
Reliances, HTFC of the world, right?
3:16
These are these are not shady micro
3:17
caps. These are these are real giants,
3:18
right? They they wobble, they dip, but
3:21
they they rarely fall flat, right? The
3:22
whole idea behind the Nifty shop is just
3:24
this, right? When a a great stock falls,
3:27
it it's often temporary, right? That dip
3:29
is is basically an opportunity. So,
3:30
instead of chasing highs or gambling on
3:32
momentum, we do just the opposite. We
3:34
wait for the weakness, we buy the dip
3:35
and we sell on recovery. And that's the
3:37
foundational promise behind a strategy.
3:39
Right? You might think, you know, that
3:41
sounds so simple and might be wondering
3:42
if this really works. Wait for a few
3:44
more minutes and I'll I'll I'm sure
3:46
you'll be surprised. I have a general
3:48
appeal to make. Uh close to 80% of the
3:50
people who watch my videos don't seem to
3:51
be subscribing. As you're aware, this
3:53
community is just one person initiative
3:55
dedicated to help people on their fire
3:56
and wealth buildinging journey. Running
3:58
and maintaining this community takes
3:59
time, effort, and resources from my
4:00
side. Um one way you could support this
4:02
community is by subscribing, liking, and
4:04
also sharing this content with your
4:05
friends. This will motivate me to do
4:06
more such videos and keep this community
4:08
alive. Thank you.
4:10
Now, talking about the entry rules, it's
4:12
pretty simple. And here's what the daily
4:13
routine uh looks like. And and and the
4:15
best part, you only need about 10
4:16
minutes a day if you're doing it
4:17
manually. Um so at around 3:20 p.m., you
4:21
know, the market closes at 3:30 p.m. So
4:22
10 minutes before the market closes,
4:24
just before the market close, step
4:25
number one, you scan the Nifty50
4:27
universe and five and find five stocks
4:30
that are trading the farthest below
4:31
their 20-day moving average. Right? So
4:34
uh you scan and you find out five stocks
4:36
that are trading farthest below their
4:39
20-day moving average. Right? So these
4:41
are the ones that are currently beaten
4:42
out, right? Clearly. Step number two,
4:44
from those five, pick up to two stocks
4:47
that you don't already hold and then buy
4:49
them. Right? If all five stocks are
4:52
already in your portfolio, so you don't
4:54
basically force a trade. Instead, you
4:55
move to what I call the averaging mode,
4:57
which is the next step. Now, I know
4:59
averaging down gets a bad rep and you
5:01
might be rolling your eyes now and even
5:02
thinking, you know, or getting ready to
5:03
close this video, but hang in there.
5:05
Hear me out. In the strategy, you
5:07
average only when the stock from your
5:08
holding has fallen more than 3% from
5:10
your last buy, which is your average
5:12
price, right? If you have more than one
5:13
holdings, then the average price is
5:15
going to be your average buy price from
5:16
where you need to calculate how how far
5:18
down the the price has fallen, right?
5:19
And you don't go all in and buy
5:21
everything. You just buy one stock per
5:23
day, right? You you going to be doing
5:24
only one averaging per day, the one that
5:26
has fallen the most. So, it's it's a
5:29
controlled thoughtful way of building
5:30
your position, not some blind doubling
5:32
down, right? And remember, we are doing
5:33
this uh you know on uh with the India
5:36
top companies and not just random junk.
5:38
So, just to recap the entry rules just
5:39
so there's no confusion. At 3:20 p.m.
5:41
every day, you look at the Nifty50
5:43
universe and you find five stocks that
5:45
are trading the farthest below that has
5:47
fallen the the farthest below from the
5:48
20-day moving average. And then if you
5:51
and then pick two of those ones from
5:53
from that list and then you you buy them
5:55
if you don't already hold them, right?
5:56
In case you your portfolio, all the five
5:58
that you've just picked are already part
6:00
of the portfolio, you move into
6:01
averaging mode, right? In the averaging
6:03
mode, what you do is you look at your
6:04
existing portfolio, your holdings, and
6:06
then find the stocks that have fallen
6:08
more than 3% from your average buy
6:10
price. Right? And then the you you
6:11
basically buy one more lot of the the
6:13
particular stock that has fallen the
6:15
most. Right? Out of the the ones that
6:16
have fallen below 3%, you take the one
6:18
that has fallen the most and you buy
6:19
only one lot. So there's only averaging
6:21
for one stock per day. The exit rules is
6:24
pretty simple. At the end of the day,
6:25
before you begin the buy leg of the
6:26
strategy, you do the following steps to
6:28
do the the sell leg of it, right? You
6:30
basically try and sell the stocks that
6:31
are eligible. So at 3:20 p.m. every day,
6:34
you check your portfolio and see if any
6:36
stock trading more than 5% above your
6:38
average buy price. Right? 5% is the
6:40
target we have kept for the strategy. So
6:42
you need to look for stocks that are
6:43
trading more than 5% above your average
6:46
buy price. Right? If if yes, you just
6:48
sell only one stock per day, the one
6:50
that is gained the most. Right? If you
6:51
had two stocks that are basically either
6:53
say 5% and 5.5%, you sell only the one
6:56
that is 5.5% uh that has that has gone
6:58
up by 5.5% on that day. So that's it.
7:02
You don't rush. You don't exit
7:03
everything at once. You just chip away
7:05
small wins consistently. Optionally, you
7:07
can increase the target percentage to 6
7:08
or 7%, but 5% is is the most optimum
7:11
number based on experience.
7:13
As far as how much capital to allocate,
7:15
u here's what the strategy
7:16
recommendations are. There are actually
7:17
two approaches that you could take. The
7:19
first one is just go with a fixed 15,000
7:21
per trade, right? I mean, no nonsense.
7:23
Just consider 15,000 per trade for every
7:25
trade that you're taking. That's the max
7:26
limit, right? Or the second approach is
7:29
is that you divide the overall strategy
7:31
balance by 40 right and use that number
7:33
every time you enter or average right so
7:37
the second method lets you your position
7:39
size kind of grow over time as the
7:40
capital grows so it's a quiet way of
7:42
basically compounding and it makes a big
7:44
difference over a long run right however
7:46
um if you don't want to complicate
7:48
things the first option is equally good
7:49
and that's the approach that I've been
7:50
using so far and remember you use the
7:53
same position size for both buying a
7:55
fresh buy and also for averaging So if
7:57
if you choose 15,000 per trade, when you
7:59
buy a fresh stock, you again have that
8:01
15,000 limit. When you're trying to
8:02
average also, you again stick with that
8:04
15,000 limit. I know I mentioned you
8:06
need about 10 minutes each day. Uh but
8:09
the way I'm currently doing it is I've
8:10
fully automated this. This runs on my
8:12
algo platform completely fully
8:14
automated. I I don't spend any time on
8:15
this one. And the the rules, as you can
8:17
see, it's pretty simple, right? With
8:19
less than about 20 30 lines of code, you
8:21
can you can implement the entire uh
8:23
logic of this strategy. And and that's
8:25
the you know, the benefit of it. So this
8:27
is one reason I've been telling uh to
8:28
everyone within the community that it's
8:30
worth uh your time trying to learn
8:32
Python or any language for that matter
8:34
and automate your strategies as much as
8:35
possible and especially these strategies
8:37
which are very straightforward and
8:38
simple. It's easy to maintain um unlike
8:41
you know you have very complex option
8:42
strategies where you're worried about
8:43
you know whether the price would jump
8:44
over your stop loss and what if my
8:46
stop-loss order or target harder doesn't
8:48
hit all that things you don't have to
8:50
worry about it's it's simple basically
8:52
implement and forget and the the code
8:53
basically runs on its own and if you ask
8:56
me that's the best way to actually do it
8:59
all right so enough of talking let's
9:01
look at how the strategy performed um
9:03
I've named this strategy Aditi I'm
9:05
currently running it on a small account
9:06
uh on zeroda this is my wife's account.
9:09
She has multiple accounts. This is one
9:10
of those small smaller accounts on which
9:11
this has been running for more than 1.5
9:13
years. I think since uh August 2023 uh
9:16
until March, I I don't have anything
9:17
beyond March yet. But I think this
9:19
strategy, the data that I currently have
9:21
only runs until March. That's why you
9:22
see a flat top here, right? Um so, so
9:25
overall, if you really look at the, you
9:27
know, the performance, I think it's
9:28
pretty good. You have a 100% win ratio
9:30
as expected because you don't have any
9:32
stop- loss. You keep averaging down. You
9:33
never basically cut your trades. you
9:36
always finish end up basically finishing
9:37
it in profit, right? And uh 24% CGI,
9:40
which I think is pretty decent because
9:42
you're almost taking zero risk with your
9:43
money. Uh and then that's close to about
9:45
2% a month, which is uh very very decent
9:47
if you ask me. Um and then draw down as
9:50
you can, you know, know it's it's uh 0%
9:52
because we're not really closing trades
9:53
prematurely, right? So that's that and
9:55
the equity curve uh looks uh really
9:57
good. Uh the brown one is the the equity
9:59
curve of the strategy. Um so please
10:01
consider until March because I've not
10:02
traded it stay flat on top and then the
10:04
the white ones if if I had invested in
10:06
nifty at the same time the same amount I
10:08
mean this is what the performance would
10:09
have been which clearly looks pretty
10:11
good. In fact the nifty has a small uh
10:13
dip here under water whereas the
10:15
strategy continues to have a smoother
10:16
upward trending curve which is which is
10:18
really really good. Uh there's nothing
10:19
to report on the draw down because we
10:21
don't have a draw down. You're not
10:22
closing any trades prematurely. And this
10:24
at a at a high level you know look at
10:26
the the yearly returns year-on-year
10:27
returns. uh you know uh yeah we have the
10:29
monthly returns as well as the the
10:30
compounded yearly returns as well. So
10:32
24% in 2023 37.2 to in 2024 which
10:35
actually is very good because 2024 um we
10:37
did struggle in the the later part of
10:39
the year in spite of that it's it's
10:40
pretty decent 2025 only until March so
10:43
there's not much to report here um as as
10:45
I'd mentioned the draw down underwater
10:47
plot the white is nifty so the strategy
10:49
doesn't have any you know underwater uh
10:51
you know situations to use which is
10:53
which is again really good I spoke about
10:55
how good in terms of the the risk
10:57
positioning here for for the strategy uh
10:59
and then if you really look at the the
11:00
strategy versus benchmark um so 2023 12%
11:03
versus 24% you have a 2x year and then
11:05
2024 8 and 34 which is a 3x year right
11:08
which which really good both these years
11:10
it beats the benchmark by a long way
11:11
2025 of course it's uh it's only 3
11:13
months and less than 3 months you have a
11:15
slight dip but I think after the
11:16
recovery uh the story should have been
11:18
slightly different and these are all the
11:19
the trades that I took um currently
11:21
there are no negative ones because if
11:22
there are any trades that are in loss
11:24
you would have a red line or a red color
11:26
marked here so currently I don't have
11:27
any which means that you know pretty
11:28
much all of it uh ended positively and
11:31
then you can look at all the nifty50
11:32
right uh the the stocks here nothing
11:34
nothing beyond the nifty50 universe and
11:36
also the um position size initially I
11:39
was following a 10,000 limit I believe I
11:43
increased it by about 15,000 yeah you
11:45
can see the 15,000 later uh during the
11:47
year right so initially it was 10,000
11:49
per lot and then it increased by 15,000
11:51
and then u I'd also mentioned that the
11:53
the the target percentage for sell is 5%
11:57
but however you might uh you know see
11:58
here that some of these are prematurely
12:00
closed like 4.2 to uh sometimes even
12:02
3.7. So that's primarily because my wife
12:05
sometimes closes these trades a little
12:07
early. Um
12:09
because there's a way within the algo
12:10
system where you can force close some of
12:12
your trades uh you know early uh using
12:13
the from a command using a telegram uh
12:16
from your telegram. So so that's how I
12:17
think she's closed a few trades here.
12:18
That's why you see this 3.9 3.7
12:21
otherwise you know uh most of it is
12:23
above five right so you you basically
12:25
let it run as much as possible and then
12:27
you close it at the highest possible
12:28
returns as possible. So, so that way I
12:30
think uh this is really good. If anyone
12:32
wants a copy of the uh the trade book,
12:34
please do ping me. I'll be more than
12:36
happy to provide that. I also run the
12:38
same strategy on my bigger account as
12:39
well. So, my overall experience has been
12:41
that not once did I feel kind of out of
12:43
control because I know I'm not
12:44
overleveraged. I'm not chasing momentum.
12:46
I'm only dealing with the the most
12:47
highquality businesses of India. I know
12:50
we live in a world where everyone's
12:51
looking for that next big breakout or
12:52
the latest options hack. But honestly,
12:55
um wealth isn't built by jumping around.
12:57
It's built by consistency, simplicity
12:58
and discipline purely, you know, from my
13:00
perspective, right? So, the nifty shop
13:01
may not be, you know, the the the most
13:04
sexiest uh strategy that you have seen,
13:05
but it kind of works. And more
13:06
importantly, it teaches you the right
13:08
habits, which is number one, patience,
13:09
risk control, and selective action. So,
13:11
if you are someone who works full-time,
13:13
who doesn't want to be glued to the
13:14
screen all the time, I think this is a
13:16
great place to start. All right, if this
13:18
made sense to you, uh, give the video a
13:20
like so it reaches more people who need
13:21
to hear this. Uh I'll be doing a
13:23
follow-up video on the the other
13:24
variation of the same strategy that I
13:26
talked about and I'll share that
13:27
performance as well shortly. Uh so until
13:29
then hit subscribe and turn on the bell
13:31
notification as well. And if you have
13:32
tried something similar or have
13:34
questions you know please do drop a
13:35
comment. I love chatting with you guys
13:36
and that's what this community is is for
13:38
really right. Uh so
13:41
all right that's it for today. Stay
13:42
curious, stay grounded as always. Trade
13:44
safe, build slow and keep moving forward
13:46
uh towards your financial freedom. This
13:47
is Vive from Faprader. See you in the
13:49
next one. Bye. If you genuinely found
13:51
this video useful, please consider
13:52
subscribing and liking the video. And I
13:54
will see you soon in another video. And
13:55
until then, take care and happy trading.
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