Strategy description

Strategy Overview

This strategy is designed to identify market direction and respond quickly with targeted trades. Below is a summary of the approach, along with essential points to consider.

Key Advantages

• Quick Directional Recognition: The strategy assesses market direction and initiates trades promptly.
• Directional Focus: Trades are generally directional in nature, based on market trends.
• Rapid Hedging: Automatically initiates hedging positions to manage potential losses efficiently.
• Profit-Driven Exits: Trades are typically closed only when positions are profitable.
• Strategic Position Holding: Avoids exiting positions prematurely, seeking advantageous market conditions.
• Limited Hedging Positions: Uses minimal hedging trades to maintain simplicity.
• Cost-Free Access: This strategy is currently available without any charges.
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Potential Drawbacks

• Range-Bound Markets: The strategy may remain active without significant movement on days when the market is range-bound.
• Moderate Profit Days: In low-movement scenarios, profits may be minimal or non-existent over several days.
• Trade Frequency: May initiate up to 20 trades per day (10 sell + 10 buy).
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Important Considerations

1. Token Generation:

   • Brokerage platforms often require token generation to execute trades. Generate the token each day after 8:00 AM. While Tradetron advises generating tokens post-8:00 AM, tokens generated after 6:00 AM have also been observed to work reliably.

2. Missed Token Generation:

   • If the token is not generated, orders will not execute, resulting in error messages. Missing token generation can lead to unexpected outcomes, so ensure this step is completed on all trading days.

3. Error Management Settings:

   • To safeguard against missed executions, select “On Error Setting” and check the box labeled “If strategy is in error, exit strategy.” This setting will automatically exit the strategy when execution errors occur.

4. Automatic Strategy Exit:

   • The strategy will exit automatically in two cases:
     • When the “On Error Setting” is activated as described above.
     • When the strategy’s pre-set profit threshold is reached.
   • Reactivation After Exit: Following an exit, the strategy will automatically reactivate within a minute or two to continue trading.
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Strategy Creator’s Recommendations

1. Paper Trade First: Test the strategy with paper trading for one month before live deployment.
2. Analyze Monthly, Not Daily: Evaluate the strategy’s performance on a monthly basis for a broader perspective.
3. Avoid Manual Intervention: Allow the strategy to operate without manual adjustments.
4. Capital Requirements: Recommended capital is approximately ₹75,000, with an additional buffer of up to ₹100,000 for safety.
5. Realistic Expectations: Approach the strategy with realistic profit goals and avoid comparisons with hypothetical or unrealistic numbers.
6. Independent Decision-Making: Make independent decisions based on your observations. Avoid relying on external opinions, including this description.
7. Live/Paper Trade Testing: Deploy the strategy in either live or paper trading to observe its operation in real market conditions.
8. Handling Volatility: In times of sudden volatility, you may observe increased MTM (Marked-to-Market) losses. Allow time for the strategy to stabilize during such periods.
9. Brokerage Considerations: Use low-cost or zero-commission brokerage platforms to help manage brokerage fees.

All the Best, and Happy Trading!