Strategy description

Underlying - NIFTY Next Week Expiry

Strategy Type – STBT { Sell Today Buy Tomorrow }

Trade Type: Option Selling

Margin Requirement: ₹6L

Drawdown: 8% of Margin

How it Works

This is a positional and directional strategy, where you should keep patience with the positions taken and allow the positions to play out and eat theta.

The strategy makes money from theta decay, and in case of a trending market, it might make money from a directional move as well, mostly when there is a breakout in intraday.

What to Do

1. Paper Trading: We recommend putting this strategy in TT Paper Trade mode for the first week. This will help you build the patience required for sticking to the strategy.
2. Be Patient: Allow the strategy to work. It only takes position once a day, makes adjustments with SL, and 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 eat 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 trading 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 remain 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. It is strongly advised to 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 going for live deployment of any strategy. Algos can generate both profits and losses, and users should not expect any unrealistic returns or success ratio with any automated strategy.