Strategy description

Income-Focused Hedged Option Selling Strategy

This strategy is designed for traders who seek consistent monthly income through structured option selling, instead of relying on high-risk directional speculation.

It is built using AI-assisted market behaviour analysis, volatility structure interpretation, and premium decay logic.

Most traders lose money trying to predict market direction. This strategy does not predict — it reacts dynamically to market strength and weakness.

Professional Trading Philosophy

1. Attack when probability is high.
2. Defend when market conditions become dangerous.
3. Exit when risk increases.

Just like disciplined batting — no rash shots, only high-percentage plays.

Market Conditions Suitable

1. Sideways Markets
2. Slow Trending Markets
3. Normal Volatility Markets

Instruments Traded

1. Sensex Weekly Options

Trade Structure

1. Hedged Option Selling Structure:
   1. Short Call / Short Put
   2. Protective Hedge Bought
   3. Dynamic adjustment if market shifts
2. This structure helps protect against large loss days.

Capital Requirement

1. 1X Multiplier: ₹1,65,000

Risk Management

1. Maximum Designed Drawdown: 12%
2. Stop Loss: ₹2100 per multiplier
3. Strict Controls:
   1. Hedge compulsory
   2. Entry filters during high-risk volatility
   3. Exit on abnormal movement or if ₹2100 SL is crossed
   4. No revenge trading
   5. Fixed position sizing

Expected Behaviour

1. Many small profit days
2. Few small loss days
3. Rare medium loss day
4. Avoid catastrophic loss

Goal = Survival + Consistency

Realistic Expectations

1. Option selling is a probability business.
2. Monthly returns vary — market conditions decide.
3. Risk remains controlled at all times.
4. Consistency > Excitement

Important Guidelines

1. Follow suggested capital strictly.
2. Do not interfere manually.
3. Allow the system to execute fully.

This is structured probability trading — not magic. Trade calmly, manage risk, and repeat the edge.

Paper Trading Recommendation

1. Run the strategy in Paper Trading Mode for a minimum of 2 months.
2. This helps you:
   1. Understand behaviour in different market conditions
   2. Build psychological confidence
   3. Avoid emotional interference
   4. Observe real execution style
3. After gaining confidence, shift to live trading.

Disclaimer

1. Shiddhi Patel is not a SEBI-registered investment or financial advisor.
2. Strategies should not be deployed solely based on past performance.
3. P&L updates are based on live auto P&L data and are for informational purposes only.
4. Paper trading for at least one month is highly recommended.
5. Trading strategies are not shortcuts to wealth; discipline is essential for long-term results.

Support

1. Phone: 9723877911
2. Email: [email protected]