R1 + PDH double confirmation
This intraday NIFTY futures strategy combines two popular reference levels: the classic floor-pivot R1 and S1, and the previous day's high and low. A long needs price to clear both R1 and yesterday's high; a short needs it to break both S1 and yesterday's low. It drops out as soon as a minute closes back inside, and it takes the opposite side when price stretches to R2 or S2.How it trades
Results
PRE-BUILT · DEFAULTSWhere it made and lost money
The evidence runs against the textbook view of a breakout system. Choppy days with a wide range and a mid-range close made ₹52,257 over 202 trades, while trend days lost ₹52,104 over 181. The reason is the R2 and S2 fade: on choppy days price stretches to the second pivot and snaps back, so the fade pays, but on trend days it keeps going and the fade loses, while breakout entries are often cut on a one-minute close back inside the gate. Calm VIX below 11.5 made ₹36,791 over 201 trades; the normal band lost ₹37,503 over 319. Figures are before costs.
About this strategy
- Before the open, compute floor pivots from yesterday's futures high, low and close: P, R1, S1, R2 and S2. The upper gate is the higher of R1 and yesterday's high; the lower gate is the lower of S1 and yesterday's low.
- From 09:16 to 15:00, on 1-minute closes: a close crossing above the upper gate buys one lot; a close crossing below the lower gate sells one lot.
- A breakout long is closed on any minute close back below the upper gate; a breakout short on a close back above the lower gate.
- A close crossing above R2 sells as a fade, and a close crossing below S2 buys as a fade. These take priority and reverse any open breakout trade.
- A fade is held until the opposite fade or 15:15.
- Allow up to six entries a day and close everything at 15:15.
Why traders use it
Pivot levels and the previous day's range are watched by many intraday traders, so a break of both at once is read as stronger evidence than a break of either alone. Exiting on a close back inside keeps losses small when the break fails. The fade at R2 and S2 reflects the idea that by the second pivot level the move is stretched and may snap back. It is a simple, fully mechanical level-based system.
The year in plain words
With default settings on NIFTY futures from 1 Oct 2025 to 30 Sep 2026, the strategy made 683 trades and won only 23%. Before costs it was close to breakeven, a ₹5,670 loss with a profit factor of 0.99: average wins of ₹3,604 balanced many small exits of ₹1,113. Most trades (517) ended on a close back inside the gates. That trade count is the problem: after ₹20 per order and bid-ask slippage, the year becomes a ₹1,57,256 loss with a drawdown of ₹1,83,134. February lost ₹25,247 before costs. Frequent whipsaws around the gates made it far too expensive to trade.
What the settings do
Risks
- The exit on any minute close back inside the gate leads to hundreds of small losing trades a year.
- Costs dominate: a near-breakeven result before costs became a loss of over ₹1.5 lakh after costs.
- The R2 and S2 fades bet against strong moves and can take large losses on trending days; the largest single loss was ₹23,998.
- One full NIFTY futures lot per trade means each whipsaw costs real money.
Who it suits
Traders who use pivot levels and the previous day's range and want to see how a strict, minute-by-minute version behaves, especially how trading frequency changes the result once costs are included.
Questions traders ask
What is the R1 and previous day high strategy?
It buys only when price is above both the R1 pivot level and the previous day's high, so both levels confirm the breakout. The short side needs price below both S1 and the previous day's low.
Is the pivot and previous day high breakout profitable?
From 1 Oct 2025 to 30 Sep 2026 on NIFTY futures it lost ₹5,670 before costs and ₹1,57,256 after ₹20 per order and bid-ask slippage, over 683 trades. The high trade count made costs decisive. Past results do not guarantee future ones.
How are R1, S1, R2 and S2 calculated?
The pivot P is the average of yesterday's high, low and close. R1 is 2P minus the low, S1 is 2P minus the high, R2 is P plus the day's range, and S2 is P minus the range. These are the classic floor pivots.
Why fade at R2 and S2?
The idea is that a move reaching the second pivot level is stretched and likely to pull back. It is a contrarian rule that can be switched off to trade only the breakout part of the system.