Strategy description

BANK NIFTY Trend Master is a trend-following, positional strategy on the BANK NIFTY 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

1. Bullish Trend:
   The strategy buys Call Options (CE) or goes long on BANK NIFTY futures. Positions are held as long as the bullish trend continues.
2. Bearish Trend:
   The strategy buys Put Options (PE) or goes short on BANK NIFTY futures. Positions are exited when the trend reverses or predefined exit conditions are met.

LTP & Technical-Based Entries

Entry and exit points are determined using trend confirmation indicators such as moving averages, momentum oscillators, and volatility filters.

Option strike selection is based on the current LTP and the identified trend direction, ensuring accurate and adaptive positioning.

Risk Management

A fixed percentage target is used to secure profits, while a fixed percentage stop loss helps prevent large drawdowns.

Optional hedging using farther out-of-the-money options may be applied to reduce overall risk and margin exposure.

Key Highlights

This is a positional strategy with the potential for overnight holdings. It is suitable for traders aiming to capture sustained trends in BANK NIFTY and is designed to dynamically adapt to changing market sentiment and volatility.

Strategy Details

1. Instrument: BANK NIFTY Monthly Options
2. Capital Required: ₹1,60,000
3. Type: Positional, Trend-Following
4. Average Trades per Day: 3 to 5

Disclaimer

1. Adithi Innovations is not a SEBI-registered investment or financial advisor. Trading involves risk, and users are strongly advised to consult a qualified financial advisor before deploying this strategy live.
2. P&L updates are provided for informational purposes only. Paper trading is recommended to understand the strategy’s behavior before live deployment.