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

NIFTY + SENSEX Trend Master is a positional trend-following options strategy designed to capture sustained directional moves across both the NIFTY 50 and SENSEX indices while maintaining disciplined risk management. The strategy independently identifies trends in each index and takes option positions based on the prevailing market direction.

Strategy Logic

Bullish Trend

• Buys NIFTY Call Options (CE) when a bullish trend is confirmed in NIFTY.

• Buys SENSEX Call Options (CE) when a bullish trend is confirmed in SENSEX.

• Positions are held as long as the respective bullish trend remains intact.

Bearish Trend

• Buys NIFTY Put Options (PE) when a bearish trend is confirmed in NIFTY.

• Buys SENSEX Put Options (PE) when a bearish trend is confirmed in SENSEX.

• Positions are exited when the respective trend reverses or predefined exit conditions are triggered.

LTP & Technical-Based Entries

Entry and exit decisions are based on trend confirmation using multiple technical indicators, including:

• Moving Averages

• Momentum Oscillators

• Volatility Filters

Option strike selection is dynamically determined based on:

• Current Index LTP

• Trend Strength

• Market Volatility

Each index is traded independently, allowing the strategy to capitalize on directional opportunities in both NIFTY and SENSEX simultaneously or individually, depending on market conditions.

Risk Management

• Fixed Percentage Profit Target to systematically book gains.

• Fixed Percentage Stop Loss to limit downside risk.

• Optional Far OTM Hedging to reduce portfolio risk when required.

• Independent risk management for NIFTY and SENSEX positions.

Key Highlights

• Dual-index positional options-buying strategy.

• Trades both NIFTY and SENSEX independently.

• Capable of holding overnight positions based on trend continuation.

• Designed to capture strong directional moves across multiple indices.

• Dynamic strike selection based on live market conditions and volatility.

• Rule-based entries, exits, and disciplined risk management.

Strategy Details

• Instruments: NIFTY Options & SENSEX Options

• Capital Required: ₹3,20,000

• Type: Positional Trend-Following

• Average Trades per Day: 6–10 (combined across both indices)

Disclaimer

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

Performance updates, backtest results, and P&L figures are shared strictly for informational and educational purposes only and should not be considered financial advice or a guarantee of future performance.

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

Description is provided by the creator. Tradetron does not endorse any strategy; review the composition and your own risk limits before subscribing.