created : 1 month ago| | live deployment: 2
Strategy description
Sensex Alpha V1
Overview
Sensex Alpha V1 is a combination of 4 to 8 uncorrelated strategies for enhanced diversification and stability aimed at long-term returns.
Advantages
- Incorporates uncorrelated strategies to minimize drawdowns
- Starts with non-directional setups that transition into directional positions as the market trends
- Overnight positions capture higher time decay, secured with a 3× hedging structure
Disadvantages
- Sharp U-, V-, W-, or K-shaped market movements can lead to losses despite diversification
- Estimated monthly brokerage and taxes of ~₹7,000 per lot when executed
Key Details
| Parameter | Value |
|---|---|
| Maximum Drawdown | 15% of capital |
| Capital Requirement | ₹700,000 per 1× multiplier |
| Cycle Duration | Friday to Thursday (entry possible anytime) |
| Instrument | Sensex Weekly Options |
| Type | Positional (with 3× hedge) |
| Average Trades/Day | 8–12 round trips |
| Monthly Brokerage & Taxes | ₹7,000 per lot |
Recommendation
If you’re mentally prepared to withstand capital and time-based drawdowns for up to two months, this strategy offers strong potential for long-term gains. It maintains a Sharpe ratio of 3, indicating a favorable risk-reward balance.
Shared Codes
Available on request—please contact us for live-auto share codes.
Disclaimer
FinAlgo is not a SEBI-registered investment or financial advisor. Historical performance does not guarantee future returns, especially given global hedge fund activity and regulatory changes. We strongly recommend paper trading for at least one month before considering live deployment.
