Strategy description

Agasthya – Strategy Overview

Quick Snapshot

Strategy Overview

Agasthya is an intraday options-selling strategy on ETHUSD options with daily expiry on Delta Exchange.

The core idea is to sell a short straddle (ATM call + ATM put) or short strangle (slightly OTM call + slightly OTM put) around the current ETHUSD price to benefit from:

1. Time decay (theta)
2. Controlled, range-bound price action

Positions are taken only after 09:30 AM IST and are fully exited before 05:30 PM IST, with no overnight carry-forward risk.

Per-trade risk and reward are tightly defined:

1. Maximum profit: ≈ $14.5 per trade
2. Maximum loss: $6.5 per trade
3. Maximum trades: 2 trades per day

Instruments & Platform

1. Instrument: ETHUSD Options (Daily Expiry)
2. Exchange / Platform: Delta Exchange

Trade Logic & Timings

Signals for Agasthya are generated using a blend of trend, volatility, and strength indicators, primarily:

1. ADX (Average Directional Index) – to gauge trend weakness and identify non-trending / range-bound conditions favourable for option selling
2. ATR (Average True Range) – to measure volatility, size risk, and help in choosing appropriate strikes and stop levels
3. Bollinger Bands – to identify Bollinger Band squeezes (volatility contraction phases) that often precede expansions, helping in timing short straddles/strangles

The strategy focuses on intraday mean-reversion / range-bound behaviour, making it suitable for short straddles and strangles on daily-expiry ETHUSD options.

Entry Conditions

1. Time Filter
   1. Entries are considered only after 09:30 AM IST.
   2. All trades are designed such that exits happen before 05:30 PM IST.
2. Trade Frequency
   1. Maximum of 2 trades per day, including all straddle/strangle entries.
3. Structure
   1. Short straddle (ATM call + ATM put), or
   2. Short strangle (slightly OTM call + slightly OTM put),
   3. depending on volatility, ADX, ATR and Bollinger squeeze conditions.
4. Order Type
   1. Primarily market orders to ensure reliable execution (subject to liquidity on Delta Exchange).
5. Margin & Capital
   1. Margin requirement is as per Delta Exchange ETHUSD option norms and varies with strikes, IV, and ETH price.
   2. Traders are advised to maintain buffer capital above minimum margin to handle intraday MTM swings safely.

Risk Controls (Per Trade)

Each position in Agasthya is governed by pre-defined risk rules:

1. Per-Trade Max Loss:
   1. Positions are exited if the loss reaches $6.5 for that trade.
2. Per-Trade Max Profit:
   1. Profits are booked once $14.5 per trade is achieved.
3. Indicator / Volatility-Based Exit:
   1. Exits may also be triggered when ADx, ATR, or Bollinger Band behaviour indicates:
   2. Trend strengthening against the position
   3. Sudden volatility expansion after a squeeze
   4. Unfavourable skew in price action
4. Time-Based Exit:
   1. All open positions are mandatorily squared off before 05:30 PM IST, irrespective of PnL, to avoid overnight option risk.

Pricing

1. No upfront fee.
2. 10% profit-share monthly on gross PnL shown on your Tradetron deployment page.
3. Profit-share is calculated cumulatively across all our strategies under Saptharishi Algo.

Recommendation

We strongly suggest paper trading / virtual deployment for at least 1 month before going fully live.

This helps you understand:

1. Behaviour of ETHUSD daily-expiry options
2. Intraday drawdowns and variance in PnL
3. How the $6.5 max loss and $14.5 max profit caps behave in real conditions

Contact

1. Mob: 9820972015
2. Email: [email protected]

Disclaimer

1. Saptharishi Algo is not SEBI-registered and does not offer investment advice.
2. Trading in crypto derivatives and options involves significant risk of loss.
3. Past performance is not indicative of future results.
4. All trading decisions are entirely your own; we assume no liability for outcomes.
5. Our tools, strategies, and deployments are provided for informational and automation purposes only.

— Capt. Velayudhan C P; "Saptharishi Algo"