Strategy description

Underlying - NIFTY Current Week Expiry

Strategy Type – Mix of Intraday, Positional and Expiry Special

1. Trade Type: Option Selling
2. Margin Requirement: ₹5L
3. Drawdown: 8% of Margin

How it Works

1. This is a mix of Positional, Intraday, and Expiry special strategy. You should keep patience with the positions taken and allow them to play out and eat theta.
2. The strategy makes money from theta decay, and in case of a trending market, it might also make money from a directional move, especially when there is a breakout in intraday trading.

What to Do

1. Paper Trading: We recommend you put this strategy in TT Paper Trade for the first week, which will help you build patience required for sticking to the strategy.
2. Patience: Allow the strategy to work. It only takes position once a day, adjustments are made with SL, and it exits the position by the end of the day.
3. Redeployment: The strategy will not redeploy if SL is hit on both sides due to choppy markets.
4. Multiplier: The recommended multiplier is 1x to 5x. You can exit the strategy if you like the profits you have made. However, we recommend you continue with theta with us.

What Not to Do

1. Inconsistent Trading: Don't trade this strategy inconsistently. You need to give it at least 2 weeks in live before deciding if it is useful for you or not.
2. Don't Panic: This strategy analyzes trade parameters every 1m, 3m, and 5m before deciding the move. The objective is to remove the noise and stay in position to earn theta.

Disclaimer

SNWC is not a SEBI registered Financial Advisor. Traders must understand the risks involved in Futures & Options trading before entering. You should contact your investment advisor before trading in Futures & Options. It is recommended to deploy the strategy in Paper Trade mode for 4-5 weeks before live deployment. Algos can generate both profits and losses, and users should not expect unrealistic returns or success ratios with any automated strategy.