Strategy description

KAUMODAKI SFT5.0: BANKNIFTY Monthly Options Buying Scalping Strategy

The "KAUMODAKI SFT5.0" strategy by Sravya Financial Technologies is a BANKNIFTY monthly options scalping strategy designed for intraday trading. Below is a concise summary of its key components, risk management, costs, and considerations:

Key Features:

1. Trading Instrument: BANKNIFTY monthly options (1 lot = 35 contracts).
2. Entry & Exit Timing: Entries after 9:18 AM, exits by 3:14 PM.
3. Strike Selection: Chooses the strike with the option premium closest to ₹300.
4. Trade Frequency: Maximum of 10 trades per day.
5. Performance: Claims suitability for all market conditions, using momentum indicators, trend analysis, and price action for entry points.
6. Automation: Minimal trader intervention required; supports auto live trading.

Financial Requirements:

1. Minimum Margin: ₹20,000 (including buffer) for 1x position (1 lot).
2. Position Sizing:
   1. ₹20,000 = 1x position.
   2. ₹40,000 = 2x position.
   3. ₹60,000 = 3x position, etc.
3. Max Daily Loss/Profit: ₹3,000 each.

Risk Management:

1. Emphasizes strict risk and money management to prevent significant losses.
2. Cap daily loss at ₹3,000 to protect capital.
3. Without proper risk management, even this strategy risks depleting the account.

Costs:

1. Monthly Fee: ₹500 per multiplier (e.g., ₹500 for 1x position, ₹1,000 for 2x, etc.).
2. Profit Sharing: 10% of monthly profits, calculated via TRADETRON records.
   1. Example: ₹10,000 profit → ₹1,000 shared.
   2. Losses carry forward to offset next month’s profit (e.g., ₹5,000 loss last month, ₹10,000 profit this month → ₹5,000 × 10% = ₹500 shared).
3. Payment Terms: Invoices are issued on the 1st and are due by the 3rd. Non-payment blocks strategy access until cleared.

Broker Selection:

1. Recommends brokers with zero or low brokerage fees to minimize costs, as scalping involves frequent trades.

Recommendations:

1. Paper Trading: Test strategy via live paper trading for at least one month before real capital deployment.
2. Broker Choice: Select brokers offering commission-free or low-cost options trading.

Disclaimer:

1. Not SEBI-registered; use at your own risk.
2. No guaranteed profits; past performance isn’t indicative of future results.
3. Consult a registered financial planner before live trading.