Strategy description

Underlying - NIFTY Next Week Expiry

Strategy Type – STBT { Sell Today Buy Tomorrow }

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

How it Works

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

The strategy performs from theta decay, and in case of a trending market, it might also perform from a directional move, especially when there is a breakout in intraday trading.

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. Patience: Allow the strategy to work. It only takes a position once a day, makes adjustments with stop-loss, and exits the position by the end of the day.
3. Redeployment: The strategy will not redeploy if the stop-loss 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 of live trading before deciding if it is useful for you or not.
2. Don’t Panic: This strategy analyses trade parameters every 1m, 3m, and 5m before deciding the next move. The objective is to remove noise and stay in the 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 advised to consult with 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.