Developer ports Indian FII/DII trading strategy to US markets, loses money on all tests
A software developer attempted to adapt an Indian institutional trading strategy, popularized by YouTube channel Upsurge Club, to US futures and ETFs including MNQ, MES, SPY, and QQQ. The original strategy relies on daily participant-wise open interest data published by India's NSE, tracking positions of foreign and domestic institutions, proprietary traders, and retail investors. The closest US equivalent found was the CFTC's weekly Traders in Financial Futures report, but its weekly frequency and multi-day publication lag made it a weaker signal than the NSE's near-real-time data. A second component of the strategy — using options open-interest concentration at specific strikes as support and resistance — could not be backtested due to the absence of historical strike-level OI data from available broker APIs. The backtest, run only on the CFTC-based bias signal with a Monday-open to Friday-close trade rule, produced losses across all four instruments tested.
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