Strategy description

1. BTCUSD Algo Strategy Description
2. Trading Scope
   1. Trades exclusively in BTCUSD Options.
   2. Operates only on same-day expiry options, which expire daily at 5:30 PM IST.
   3. Executes trades strictly on 0-DTE (zero days to expiry) options.
   4. Uses an unhedged, naked option selling strategy.
3. Capital Requirement
   1. Recommended capital requirement is $100 (approximately ₹10,000) per 1× multiplier.
4. Risk Management & Drawdowns
   1. Expected maximum stop loss per day on 1× typically ranges between $9 to $15.
   2. In rare situations, losses up to ~$50 have occurred despite a configured stop loss of ~$9.
   3. Primary reasons for higher losses include:
      1. Sudden bid-ask spread expansion
      2. Liquidity-driven slippage during volatile conditions
5. Brokerage & Scaling Considerations
   1. Brokerage and transaction charges on Delta Exchange are very high.
   2. Increasing lot size significantly amplifies:
      1. Slippage risk
      2. Overall transaction costs
   3. Caution is strongly advised while scaling position size.
6. Trade Execution Rules
   1. Trade entries are taken only after 2:30 PM IST.
   2. Common trade structures used:
      1. Short Straddles
      2. Short Strangles
   3. If neither stop loss nor target is hit, positions are force-exited close to expiry, around 5:25 PM IST.
7. Asset & Exchange
   1. Asset: BTC/USD (Crypto Options)
   2. Exchange: Delta Exchange India
8. Strategy Mechanism
   1. Shorting options (selling premium) to benefit from rapid theta decay on same-day expiry.
9. Order Execution
   1. Primarily uses automated limit order executions.
   2. In certain market conditions, market orders may also be executed.
10. Mandatory Account Configuration
    1. Margin Mode:
       1. Must be set to Cross Margin or Portfolio Margin.
       2. This helps prevent premature liquidation.
    2. Leverage:
       1. Options leverage must be set to 200×.
11. Support & Updates
    1. Telegram Support: @sachinjainalgo
    2. Email Support: [email protected]
    3. Discussion Channel: sachinalgosdiscussion (Telegram)
12. Referral & Fee Disclosure
    1. Opening an account via referral provides a temporary trading fee discount for the first two months.
    2. No waiver is provided on profit sharing or fixed fees for Bitcoin algos.
    3. No commercial brokerage-sharing arrangement exists with the exchange.