Strategy description

Directional Trio – NIFTY, BANKNIFTY & SENSEX Hedge Selling V2

“Dominate Direction. Defend Capital. Diversify Boldly.”

Strategy Overview

1. Directional Trio V2 builds upon the earlier version by introducing slightly larger position sizes and broader trend plays for traders willing to explore calculated risk while safeguarding capital through carefully designed hedges. This structured positional options selling strategy combines directional exposure across NIFTY, BANKNIFTY, and SENSEX, using weekly and monthly options to capitalize on market movements while ensuring protection.
2. The diversified structure spreads risk across multiple indices and timeframes, offering a balanced yet opportunity-driven approach for traders aiming for multi-week returns with disciplined risk management.

Key Features

Why Trade Directional Trio V2?

1. Disciplined Framework: Defined stop-loss levels and hedges ensure risks are managed thoughtfully.
2. Correlation Advantage: Multi-index plays strengthen directional conviction and trend-following edge.
3. Diversified Exposure: Balanced across indices to avoid concentration and reduce market-specific shocks.
4. Trend Maximization: Extended holding periods allow for stronger directional moves.
5. Focused Execution: Clear rules support intentional trading without constant intervention.
6. Position Scaling: Suitable for traders willing to take calculated risk while maintaining structure.

How It Works

1. Trend & Momentum Analysis: Identify directional signals through technical setups and correlation patterns. Entries consider momentum strength before execution.
2. Capital Allocation: Allocate ₹9,00,000 equally across NIFTY, SENSEX, and BANKNIFTY for balanced exposure while scaling positions thoughtfully.
3. Entry Strategy: Trades are triggered when signals align across two or more indices and momentum thresholds are confirmed.
4. Risk Management: Protective overlays help limit downside risk, with stop-loss levels set to avoid premature exits during market fluctuations.
5. Exit Strategy: Positions are squared off before expiry or when profit/loss thresholds are reached. Trailing stops may be applied to lock in profits during trending phases.

Who Should Trade This Version?

1. Experienced traders seeking structured, trend-based positional trades.
2. Those comfortable with slightly larger allocations and calibrated risk levels.
3. Investors looking to capture extended market moves with disciplined controls.
4. Professionals wanting a systematic approach to options selling with correlation signals.
5. Traders prepared to combine technical setups with momentum confirmation.

Disclaimer

Adithi Innovations is not a SEBI-registered investment advisor. This strategy is provided for educational and informational purposes only. Past performance does not guarantee future results. Increased allocation and broader trend plays carry higher exposure and require strict adherence to risk management. Traders are encouraged to conduct thorough research, paper trading, and proper capital allocation before real deployment. Discipline, planning, and experience are essential for success.