Mathematical Approach to Trading: Discovering A Short-Term High Probability, Low Risk, High Return Trading Strategy


  • Narender Kumar
  • Khushwant Pahwa, FIAI, FIA


The authors of the paper have studied price and volume contraction that may follow a certain level of price rise in high quality stocks, which results in high probability profitable trades with low exposure to downside risk. The paper specifies the criteria for defining entry points, managing of downside risks as well as profit booking criteria. The paper also shares the results of back-testing to prove the validity of trading strategy suggested in this paper.