Strategy description

Strategy Overview:

This strategy focuses on generating intraday returns by selling NIFTY at-the-money option straddles every trading day.

The system automatically initiates positions at 9:21 AM and exits all open trades before 3:15 PM. It aims to capture time decay (theta) while managing risk dynamically through controlled stop-loss mechanisms and capped daily drawdown.

Key Features:

1. Underlying: NIFTY Options
2.  Type: Intraday Short Straddle
3.  Entry Time: 9:21 AM
4.  Exit Time: Before 3:15 PM
5.  Minimum Capital Per Multiple: ₹3 Lakh per multiple (Slightly more on the expiry/volatile day)
6.  Daily Risk Cap: ₹2,000 per multiple (strictly controlled)
7.  Average Trades per Day: 8 trades (4 entries and 4 exits)
8.  Actual Trades per Day: Minimum 4 to Maximum 18 trades (i.e. 2 to 9 entries and equal exits ) depending on market volatility 
9.  Re-entry - Few re-entries, if desired results not achieved in earlier entries
10.  Minimum Lot Recommendation: 2 Multiples (to offset brokerage and transaction costs)
11.  Objective: Low-risk, consistent income generation with strict discipline

Recommended Multiples For Break-Even: 

At least 2x multiples be deployed to achieve meaningful returns after brokerage and other charges. 3x or more will always be better.  

Strategy Highlights:

1. Trades only in NIFTY Weekly Options
2.  Uses a systematic approach for risk control
3.  Automated risk control eliminates emotional bias
4.  Auto exit mechanism ensures all trades close before market close
5.  Works well in range-bound and low volatile markets
6.  Designed for steady compounding rather than high-risk returns
7.  Proven live-tested logic refined from real-market performance

Disclaimer

Smart Algo is not a SEBI-registered advisor. Trading in derivatives carries significant risk, and past performance is not indicative of future results. Therefore, strategies should not be deployed solely based on historical performance. We strongly recommend paper trading for at least one month to understand the strategy’s logic and behavior under different market conditions before going live. Deploy only if you fully understand and accept the associated risks.

Note: Trading strategies are not shortcuts to instant wealth. Consistency and discipline are key to achieving long-term success. Algo trading helps eliminate emotional decision-making and performs best when allowed sufficient time to work. If you decide to deploy this strategy, give it at least 2–3 months to demonstrate its real potential. Avoid manual intervention such as pausing, force exits, or modifying trades — let the system execute and manage trades as designed.

Contact: [email protected]