Do simple Trading strategies really work in Indian Markets? It is the curiosity remains among most of the traders. Does a simple technical condition bring consistent returns in the markets despite commissions and slippages? To test this hypothesis, we took a strategy which is quite popular in social media – VWAP based intraday trading strategy.
In finance terms, volume-weighted average price (VWAP) is defined as the ratio of the value traded to total volume traded over a particular time horizon (usually one day). It is a measure of the average price at which a stock is traded over the trading horizon.