Chemical Burn 2.0 // SOURCE

Created By: Defunct
Deployed By: Tradetron

Strategy Link:

Subscribers: 2199

Rating: 4.2

Tags ShortGamma, MarketNeutral, Pairs
Margin 350,000


Chemical Burn is an INDEX STATISTICAL ARBITRAGE STRATEGY that creates delta short strangles on index options to capture statistical patterns in historical index price data. It pair trade signals on underlying index and implements the trade via shorting weekly options.

2.0 is the new version of Chemical Burn that we designed to tackle the slippage and execution issues earlier version was facing. 2.0 is leaner, faster and delivers even smoother returns!


Daily Target and Stoploss

This algo has a daily stoploss of approx. 8K on 1x multiplier. It has no daily target limit and lets the trades run until square off time (except for expiry where it books at Rs. 2).

Product Type and Square Off

This algo trades only intraday using MIS orders and all trades are squared off by 3:05 PM. 

Capital Required

The algo can have a maximum of 2 lot Nifty short options and 2 lot BankNifty short options trades open at a given time on 1x multiplier. That is a 330K margin requirement. We also suggest keeping 15-20K additional MTM buffer. So total capital required in this case is 350K for 1x multiplier.

Please refer to your broker's leverage and margin calculator to calculate how much margin you need to keep. Please do not send us queries asking about how much margin you will need, you have to do your homework.

Profit Sharing

We are happy to announce that for quarter one of 2021 Paper Street has continued the OPTIONAL PROFIT SHARE model! That means we will not raise any mandatory profit share invoices for our clients. At the end of the month, the clients can pay whatever they like :D


Automated Trading is NOT Unsupervised Trading

Good Past performance is no guarantee of future results. It also extends to the fact that you shouldn't discount an algo simply because it's done poorly recently as it can revert to its usual amazing results in future. Although our algos are 100% fully automated, you're advised to keep a slant eye over the account to monitor any significant deviation or errors.

Contact Information

Telegram (Direct):

Telegram (Channel):



Disclaimer : These results are based on simulated or paper trading or hypothetical performance results that have certain inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown.

Capital 17.5 L
PNL 661.3 K
Drawdown 261.2 K (15%)
Std Deviation 0.14%
Sharpe Ratio 2.89
Month PNL PNL %
Jun, 20 11.5 K 0.66
Jul, 20 239.5 K 13.69
Aug, 20 81.9 K 4.68
Sep, 20 109.3 K 6.24
Oct, 20 46.8 K 2.67
Nov, 20 59.4 K 3.39
Dec, 20 145.1 K 8.29
Jan, 21 42.5 K 2.43
Feb, 21 -144.4 K -8.25
Mar, 21 69.6 K 3.98
Apr, 21 0.3 0.00
May, 21 0.3 0.00
Jun, 21 0.2 0.00