Does VWAP Trading Strategy Really Work? 6-Year Nifty Backtest

Does VWAP actually work as a standalone trading signal? We backtested three common VWAP-based strategies on over six years of Nifty Futures data: following the opening direction, trading its first reversal, and expecting mean reversion when price moves far away from VWAP. The results reveal why a strategy can make money despite losing most trades, why delayed VWAP reversals performed differently from immediate crossovers, and how selecting the best variation after seeing the data can lead to curve fitting. Watch the complete video to understand when VWAP can act as a useful decision line—and why distance from VWAP alone may not be a trading edge. This video is for educational purposes only and does not constitute investment advice. Past performance does not guarantee future returns. Here are the backtest results: https://docs.google.com/spreadsheets/... 00:00 – Intro 00:57 – What Is VWAP? 02:07 – Strategy 1 06:17 – Strategy 2 10:12 – Strategy 3 11:53 – The Curve-Fitting Trap 13:18 – Conclusion About Groww Groww is India’s Best Investment App and the Largest Stock Broker. Find us here: Android app: https://app.groww.in/v3cO/f9o4prne iOS app - https://app.groww.in/v3cO/tu0yrc3e Website - https://groww.in/ Twitter Handle -   / tradewithgroww_   Instagram Handle -   / tradingwithgroww   For educational videos on trading, please subscribe to the Trading with Groww channel: https://openinapp.co/youtube/trading-... We also have a Kannada, Tamil, Telugu, Malayalam, and a Mutual fund channel 🔔 Groww Kannada - https://bit.ly/3ekyeKP 🔔 Groww Tamil - https://bit.ly/3cbhN3Z 🔔 Groww Telugu - https://bit.ly/39aLpwC 🔔 Groww Malayalam https://bit.ly/3enG2LV 🔔 Mutual Funds at Groww - https://bit.ly/3zQpR32 🔔 Groww Marathi link -    / @groww.marathi   🔔 Ipo review by Groww -    / @iporeviewbygroww   Useful Links: Follow us on: Facebook:   / growwapp   Twitter:   / _groww   Instagram:   / groww_official   LinkedIn:   / groww.in   Telegram: https://t.me/GrowwHQ Disclaimer: Groww does not advise on individual stocks and firmly believes that viewers should do their own research before investing. Also, our viewers should keep in mind that trading in securities and derivatives can be risky and most people may end up losing money in such trades. While we would love to educate you about trading, we don't promote or recommend engaging in such high-risk products. Research Analyst disclaimer: https://groww.in/p/sebi-research-anal... Name of the Research Analyst - Shreesha Ramesh Desai Name of the narrator: Zainab Zaidi Date: 03/09/2026 If you have any concerns with respect to Groww, please feel free to write to us at support@groww.in or you can call us at +91 9108800000.