Strategy description

BANK NIFTY Trend Master – Positional Trend-Following Strategy

This is a trend-following, positional strategy on the NIFTY BANK index designed to capture sustained market moves while managing risk effectively. The system identifies market trends using technical indicators and dynamically adjusts trade positions to align with the prevailing trend.

Strategy Logic

Bullish Trend

1. Buys Call Option (CE) or goes long on BANK NIFTY futures
2. Positions are held as long as the trend persists

Bearish Trend

1. Buys Put Option (PE) or goes short on NIFTY futures
2. Exit occurs when the trend reverses or predefined exit conditions are met

LTP & Technical-Based Entries

1. Entry and exit points are determined based on trend confirmation indicators, including moving averages, momentum oscillators, or volatility filters
2. Strike selection for options is based on current LTP and trend direction, ensuring precision and adaptability

Risk Management

1. Fixed % Target: Secures profits at predefined levels
2. Fixed % Stop Loss: Prevents large drawdowns
3. Optional Hedging: Farther OTM options can be used to reduce risk and margin exposure

Key Highlights

1. Positional strategy with potential overnight holdings
2. Suitable for traders aiming to capture sustained trends in NIFTY BANK
3. Dynamically adapts to market sentiment and volatility
4. Instrument: NIFTY BANK
5. Capital Required: ₹3,00,000
6. Type: Positional, Trend-Following
7. Average Trades per Day: 3–5

Disclaimer

Adithi Innovations is not a SEBI-registered investment or financial advisor. Trading involves risks, and we strongly recommend consulting a qualified advisor before deploying this strategy live. P&L updates are for informational purposes only. Paper trading is advised to understand strategy behavior before live deployment.