Strategy description

Strategy Overview

This intraday trading strategy draws inspiration from various directional option buying and selling techniques. It aims to capitalize on market momentum, utilizing market directions to avoid false entry, uses strict stoploss for risk control, and closes all positions by end of day to avoid overnight exposure.

Capital

Key Rules

1. Trades will begin only after 9:20 AM (2 Lots) and all open positions will be closed by 3:15 PM on every trading day.
2. On gap-up or gap-down days, the algorithm will wait for the initial volatility to settle before taking entries.
3. If the market is sideways algo will create short straddle at ATM and will collect the premium decay.
4. If the market is trending algo will close the short straddle and create naked buying and will collect the premium spike.
5. If the market again come to sideways algo will re-create a new short straddle at new ATM and will collect the premium decay.
6. This process will continue till 3:15 PM or if a maximum of 10 trades executed per day.
7. This strategy is not a tool for easy money-making. Its objective is to minimize human errors and reduce the impact of emotional decision-making in trading.
8. The algorithm is designed to trade with the trend, limit large drawdowns, capture profits effectively, and lock gains with a trailing stop loss.
9. There is a maximum 5 sets of trades allowed per day. That means as long as a defined trend is available in market the algo will place upto 10 trades (5Buys & 5Sells) a day ensuring no over-trading.
10. The success of trades depends on factors such as the broker’s platform performance, market liquidity, and volatility conditions.

To reduce the Max Capital Requirement, Hedges are bought at Far OTM.

Note:

On event-driven days (e.g., major announcements, budgets, RBI policy, elections, global events, etc.), market behavior can be highly unpredictable. Trade cautiously and at your own risk.

Please ensure you backtest or paper-trade thoroughly to validate its accuracy before deploying in live markets.

Disclaimer

NeuraTrader is not a SEBI-registered analyst . This strategy is shared strictly for educational purposes only. It is not a buy/sell recommendation. Please consult with your financial advisor before taking any trading or investment decisions.