Strategy description

**Strategy Description: Sensex NDSDD**

(Non-Directional, Semi-Directional & Directional)**

Sensex NDSDD is an adaptive, positional options strategy on the Sensex weekly expiry, built to evolve with market behaviour throughout the week. The system begins with a Non-Directional (ND) position and transitions into Semi-Directional (SD) or Directional (D) structures as the market develops. When the market reverses or loses directional strength, the strategy can also shift back from Directional to Semi-Directional or Non-Directional to manage risk and maintain stability.

The strategy deploys positions on the first trading day of the week’s expiry and exits only on expiry day. It operates without a fixed stop loss or target; instead, it relies on hedges and dynamic adjustments to control risk.

How the Strategy Evolves Through the Week

1. Starts as Non-Directional (ND)

The initial structure is a tightly hedged, neutral configuration meant to capture early-week time decay while mitigating risk.
This neutral foundation allows the system to adapt cleanly to changing market environments.

2. Moves to Semi-Directional (SD) When Bias Appears

If the market begins to show a slight directional bias—through price action, volatility cues, or momentum shifts—the strategy partially aligns with that direction.
This enhances reward potential while keeping the protective hedge framework intact.

3. Turns Directional (D) in Clear Trending Markets

When strong and sustained movement is detected, the system transitions into a directional posture to take advantage of the trend.
Close hedging continues to manage adverse moves.

4. Reverts to SD or ND on Market Reversal

1. One of the core strengths of Sensex NDSDD is its ability to reverse and rebalance the structure dynamically:
2. If a trend weakens → Directional → Semi-Directional
3. If a reversal occurs or volatility spikes → Semi-Directional → Non-Directional
4. This helps protect mark-to-market and reduces drawdowns during unstable or choppy markets.

Key Highlights

1. Instrument: Sensex Options (current weekly expiry)

2. Strategy Type: ND ↔ SD ↔ D (Forward and reverse transitions)

3. Entry: First trading day of the weekly expiry

4. Exit: On expiry day

5. Risk Style: No fixed target or stop loss; relies on hedging and adjustments

6. Position Structure: Closely hedged throughout the week

7. Objective: Capture opportunities across range-bound, trending, and reversal conditions
   
   

Risk Considerations

Although Sensex NDSDD is closely hedged, it remains a positional options strategy, and thus carries overnight gap risk.
Gap-up or gap-down openings may cause temporary MTM volatility, though the strategy’s ability to rotate between ND/SD/D modes helps manage risk during the remainder of the week.

Share Code: 6bc19c6d-c550-477a-bc51-5107739bf6d3