Strategy description

Strategy Description: Straddle Supertrend Strategy

This strategy constructs a synthetic price chart by summing the OHLC (Open, High, Low, Close) data of a NIFTY Call option and a NIFTY Put option of the same strike and expiry — effectively representing the straddle premium as a single, combined candle.

A custom Supertrend indicator is then calculated on this combined straddle premium data. This helps determine the underlying trend and guides trade direction based on the movement of the premium.

Entry Logic:

If the close of the straddle premium is above the Supertrend line (indicating an uptrend), the strategy enters a Long Straddle position (buy both Call and Put).

If the close of the straddle premium is below the Supertrend line (indicating a downtrend), the strategy enters a Short Straddle position (sell both Call and Put).

The strategy is always in the trade – switching between long and short straddle positions based on the Supertrend direction change.

• This approach attempts to capture momentum and volatility expansions in the options premium, adapting dynamically to market conditions through the Supertrend logic applied to the synthetic straddle chart.

Disclaimers:

• Disclaimer:

• We do not assume any responsibility for financial outcomes resulting from the use of strategies or concepts presented in this course.

• Users are solely responsible for their trading decisions, including position sizing and risk management. Please proceed with discretion and consult a financial advisor if needed.

• This strategy is intended solely for educational purposes. All strategies demonstrated are meant to showcase how algorithmic trading logic can be structured and should not be interpreted as financial advice or recommendations. Participants are encouraged to develop their own strategies based on individual research, risk tolerance, and trading objectives.