Strategy description

About This Algo Strategy

This algo strategy has been developed on Tradetron. It is a Monthly Nifty option strategy designed for systematic trading.

Key Features:

1. Non-Directional Strategy: This strategy allows you to take positions without needing to monitor market movement.
2. Automated Entry and Adjustments: The strategy automatically takes entries and adjusts positions, eliminating the need for continuous chart monitoring.
3. Profit Potential: The strategy is designed to target monthly returns based on a required amount.
4. Position Type: The strategy involves both selling CE/PE options and buying CE/PE options for hedging purposes. This minimizes risk and reduces the required margin.

Monthly Strategy

Chart: Current month's Nifty Futures.

Strategy: Short Straddle with a hedge using Buy options.

Adjustment: Positions are automatically adjusted in case of loss.

Positions:

• Sell: 1 CE at ATM and 1 PE at ATM
• Buy: 1 CE at ATM +600 and 1 PE at ATM -600

Entry Details:

• Entry is only made once a month, between the 1st and 10th, at 10:01 AM.
• The ATM CE/PE price should be below ₹400.
• The price difference between ATM CE and ATM PE should be under ₹150.

Exit Conditions:

• Exit occurs when the target profit is reached or one day before the monthly expiry day.

Profit and Loss

• Required Margin for One Lot: ₹1,60,000
• Target Profit for One Lot: ₹13,500
• Maximum Loss for One Lot: ₹6,000

User Responsibilities

1. Deployment: Do paper trade for a month and build confidence to put a live deployment.  First do with single lot until you confident live deployment.
2. Capital Buffer: It is recommended to maintain 10% additional capital (₹10,000) to manage position adjustments effectively.
3. Token Generation: Generating tokens between 8:30 AM and 9:00 AM helps ensure smoother execution.
4. Error Management: In case of deployment errors, notifications will be sent via SMS, WhatsApp, or call. Users should review the notification log to address issues promptly. If assistance is needed, support is available through the designated support group.

Disclaimer

We are not SEBI-registered advisors. This strategy has been developed after thorough testing, but it does not offer any guarantees or claims about potential outcomes. Options trading carries significant risks and is recommended only for those with sufficient knowledge of option selling and trading. Users should consult a qualified financial advisor before deploying the strategy live.

Contact

If you need any further help on this matter, do not hesitate to get in touch with email.

Email: [email protected]