Strategy description

**Strategy Description: Nifty NDSDD

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

Nifty NDSDD is an adaptive, positional options strategy on the Nifty 50 weekly expiry, designed to evolve with market behaviour throughout the week. The strategy starts with a Non-Directional (ND) structure and dynamically shifts between Semi-Directional (SD) and Directional (D) modes depending on how the market moves. Importantly, if the market reverses, the system can transition back from Directional to Semi-Directional or Non-Directional to protect capital and rebalance exposure.

The strategy enters positions on the first trading day of the current week’s expiry and exits only on expiry day. There is no fixed SL or target; instead, risk is controlled through close hedging and dynamic structural adjustments.

How the Strategy Evolves Through the Week

1. Starts as a Non-Directional (ND) Position

The strategy opens the week with a tightly hedged, non-directional setup designed to benefit from early-week time decay while keeping risk contained.

This base structure acts as a neutral starting point.

2. Shifts to Semi-Directional (SD) as Bias Appears

When the system detects early signs of market direction—momentum, breakout behaviour, or volatility skew—it partially aligns with the bias.

This phase increases profit potential while retaining hedge safety.

3. Turns Directional (D) in Strong Trending Conditions

If the market shows clear, sustained trending movement, the strategy transitions into a directional configuration to ride the move with higher reward potential.

Hedges remain close to control risk.

4. Reverts to SD or ND During Market Reversals

A key strength of NDSDD is the ability to de-risk and convert back when conditions change:

• If a trend weakens → Directional → Semi-Directional

• If the market reverses sharply → Semi-Directional → Non-Directional

This adaptive reversal capability helps protect MTM, smoothen drawdowns, and maintain stability during volatile weeks.

Key Highlights

• Instrument: Nifty 50 Options (current weekly expiry)

• Strategy Type: ND ↔ SD ↔ D (Adaptive, forward and reverse)

• Entry: First day of the weekly expiry

• Exit: On expiry day

• Targets / SL: No fixed target or stop loss

• Position Structure: Closely hedged with continuous adjustments

• Objective: Capture weekly opportunities across range-bound, breakout, and reversal markets
  
  

Risk Considerations

Even though the strategy is closely hedged, it remains a positional weekly options strategy and therefore carries overnight gap risk.
Gap-up or gap-down moves may cause temporary MTM spikes, though the system’s ability to reverse between ND/SD/D modes helps stabilise exposure during the rest of the week.

Share Code: 8e3fffbe-dc52-44bd-9a5b-f6f7f40d33dd