We all know that trading is not just about making profits but about continuously learning from our successes and failures. For me, this time of the year also provides an opportunity to assess which strategies have worked and which ones need refinement. It’s a crucial exercise that will help shape how I approach the market in 2025.
With that in mind, I want to share a strategy that’s been particularly effective for me and discuss a set of stocks that have qualified under this strategy. These are the stocks I believe should be on your radar heading into 2025.
The Bold Bulls strategy: A multi-timeframe approach
The strategy I have been using is a trend and momentum-based system with a clear bias towards long positions. I have named it the Bold Bulls strategy. Its foundation is rooted in momentum, coupled with trend-following principles. The core of this approach is the relative strength index (RSI), which I use across three timeframes: daily, weekly and monthly.
Key components of the Bold Bulls strategy:
Trading style: Long-only
Indicator: RSI (14 periods)
Timeframes: Daily, weekly, and monthly
I have chosen to work with the default RSI period of 14, a commonly used technical analysis setting. This indicator helps gauge the strength of a stock’s price movement and determines whether it is in a strong uptrend, overbought, or possibly due for a pullback.
Here is how I approach the strategy:
Entry criteria: The RSI on the daily, weekly, and monthly charts must all be above 60.
This ensures the stock is in a strong bullish trend across multiple timeframes, indicating solid momentum.
Exit criteria: I exit a position if the daily RSI falls below 45, signalling a potential loss of momentum and a reversal.
OR
Alternatively, I also exit if the price moves 12% below my entry point as a protective measure to safeguard against significant losses.
This approach provides a structured way to capture trending stocks while managing risk effectively.
Visualising the strategy: The strength of the Bold Bulls strategy lies in its simplicity. Focusing on stocks with momentum across multiple timeframes ensures you’re trading with the market trend, not against it.
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Screening for the best stocks: A watchlist for 2025
To identify potential candidates for this strategy, I ran a multi-timeframe scanner looking at large- and mid-cap stocks with a market capitalization of over ₹15,000 crore. These stocks typically offer enough liquidity and stability to make them suitable for trend-following strategies.
For more such analysis, read Profit Pulse.
The result: 10 stocks met the criteria for the strategy. If you are looking to build a watchlist for the upcoming year, here are the potential stocks to keep an eye on.
- COFORGE
2. COROMANDEL
3. DIXON
4. GICRE
5. INDHOTEL
6. JUBLFOOD
7. LUPIN
8. MAXHEALTH
9. OBEROIRLTY
10. PERSISTENT
You can check the setups on your chart and save the template for the strategy.
What’s next for 2025?
As we turn the page to a new year, staying focused on your strategy and adapting it to changing market conditions is the mantra for success in trading. The Bold Bulls strategy has worked well for me, but no strategy is immune to market fluctuations. It’s essential to monitor the markets closely, refine your approach when necessary and always manage risk.
For 2025, I plan to continue refining my approach with the Bold Bulls strategy, adapting it to market conditions as they evolve. The key is consistency—sticking to your strategy while being flexible enough to adjust when the market gives signals of change.
As you analyze your trading journal and review your performance this year, I encourage you to consider what worked well for you and how you can improve your approach going forward.
May 2025 bring fresh opportunities, stronger strategies, and more profitable trades for all of us.
Happy New Year!
Note: The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
As per Sebi guidelines, the writer and his dependents may or may not hold the stocks/commodities/cryptos/any other assets discussed here. However, clients of Definedge may or may not own these securities.
Brijesh Bhatia has over 18 years of experience in India’s financial markets as a trader and technical analyst. He has worked with the likes of UTI, Asit C. Mehta, and Edelweiss Securities. Presently he is an analyst at Definedge.
Disclosure: The writer and his dependents do not hold the stocks discussed here. However clients of Definedge may or may not own these securities.
