Strategy description

DecayEdge – Short Iron Butterfly Strategy (Sensex Options)

Strategy Overview

1. Strategy Type: Short Iron Butterfly
2. Instrument: Sensex Weekly Options
3. Structure: Options strategy utilizing short ATM positions along with OTM hedge positions.

Strategy Description

1. The DecayEdge Short Iron Butterfly is an options strategy that combines ATM option positions with OTM hedge positions.
2. The strategy utilizes predefined entry, exit, and position management conditions.
3. The structure includes both short option positions and hedge positions as part of the overall strategy design.

Strategy Structure

1. Sell 1 ATM Call Option (CE).
2. Sell 1 ATM Put Option (PE).
3. Buy 2 OTM Call Options above the selected strike.
4. Buy 2 OTM Put Options below the selected strike.

Position Structure

1. The strategy combines ATM option positions with OTM hedge positions.
2. All positions are managed according to predefined strategy rules.
3. Entry and exit decisions are governed by the configured strategy conditions.

Trade Management

1. Hedge positions form part of the strategy structure.
2. Additional exit conditions may be configured based on predefined strategy parameters.
3. The strategy may initiate a complete exit of all open positions when strategy-level exit conditions are met.

Operational Guidelines

1. Users are encouraged to observe or paper trade the strategy before enabling live deployment.
2. Users should understand the strategy configuration, operational behavior, and capital requirements before deployment.
3. Multiplier changes should be made only after understanding the operational implications and account requirements.
4. Users should periodically review deployment status and account activity.
5. If any unexpected system behavior is observed, users should review the deployment, verify open positions, and investigate the cause before resuming operation.

Support

1. Email: [email protected]

Disclaimer

1. HHG Algorithm Research & Trading (a unit of Brandvent Pvt Ltd) is not a SEBI-registered investment advisor or financial advisor.
2. This strategy is provided for informational and educational purposes only.
3. Strategy operation may be affected by market conditions, exchange systems, broker infrastructure, connectivity issues, order execution delays, and technical interruptions.
4. Users should independently evaluate whether the strategy is suitable for their own requirements and circumstances.
5. Users are solely responsible for the deployment, configuration, and use of the strategy.
6. Trading and investment decisions should be made independently and, where appropriate, after consulting a qualified financial professional.