Strategy description

NIFTY + SENSEX Combo Trend Master – Positional Options Trend-Following Strategy

This is a multi-index trend-following positional options strategy designed to trade both the NIFTY 50 and BSE SENSEX based on prevailing market trends and momentum conditions.

The strategy dynamically identifies directional opportunities across both indices and executes option-buying trades aligned with the active trend while maintaining disciplined risk management.

Strategy Logic

Bullish Trend

• Buys NIFTY CE and/or SENSEX CE
• Positions are held as long as bullish momentum continues

Bearish Trend

• Buys NIFTY PE and/or SENSEX PE
• Positions are exited upon trend reversal or predefined exit conditions

LTP & Technical-Based Entries

• Trade entries and exits are determined using technical confirmation indicators such as:
  • Moving averages
  • Momentum oscillators
  • Volatility filters
  • Price-action confirmation
• Option strike selection is dynamically based on:
  • Current index LTP
  • Trend strength
  • Volatility conditions
  • Market momentum

The strategy can independently trigger trades in either index depending on market conditions, allowing diversification across multiple benchmark indices.

Risk Management

• Fixed % Target: Locks in gains at predefined profit levels
• Fixed % Stop Loss: Limits downside risk on every trade
• Capital Allocation Controls: Risk exposure is balanced between NIFTY and SENSEX trades
• Optional Hedging: Far OTM options may be used for additional protection during volatile conditions

Key Highlights

• Pure options-buying positional strategy
• Trades both NIFTY and SENSEX opportunities dynamically
• Designed to capture strong directional market moves
• Supports overnight positional holding based on trend continuation
• Adapts to changing market volatility and sentiment
• Diversified exposure through multi-index participation

Strategy Details

• Instruments: NIFTY Options & SENSEX Options
• Capital Required: Rs. 3,00,000
• Type: Positional, Trend-Following
• Average Trades per Day: 5–8

Disclaimer

Adithi Innovations is not a SEBI-registered investment or financial advisor. Trading in derivatives and options involves substantial financial risk. Users are strongly advised to consult a qualified financial advisor before deploying this strategy in live markets.

Any shared P&L updates, backtests, or performance figures are strictly for informational and educational purposes only and should not be interpreted as guaranteed returns or investment advice.

Paper trading is strongly recommended to understand the strategy’s behavior, execution flow, and risk profile before live deployment.