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created : 6 months ago| |  live deployment: 0

created : 6 months ago |  live deployment: 0

Bank Nifty Far OTM Hedge - #MoneyMachineSub

2 ratings

Strategy description

 


THIS STRATEGY ONLY TAKES FAR OTM HEDGES IN BANK NIFTY AND IS NOT A TRADING STRATEGY


Strategy description

This strategy buys 1 lot each of far OTM CE and PE options in Bank Nifty to take benefit of the hedged position reduced margin requirement by SEBI. This strategy works as a subsidiary and is meant to be used along with other Bank Nifty #MoneyMachine strategies from Algos With Ankur.


Please follow the below multiplier guide to deploy this strategy:


Main Strategy Name

Main Strategy Multiplier

Multiplier to be deployed of this strategy to reduce margin requirement of main strategy

Reduced Margin Requirement (Approximate)

Bank Nifty Rapid Plus - #MoneyMachine

1x

4x

Rs. 2,30,000

Bank Nifty Rapid Growth - #MoneyMachine

1x

4x

Rs. 2,30,000

Bank Nifty Ranger - #MoneyMachine

1x

4x

Rs. 2,30,000

 

Note that even if you deploy both the main strategies together, you can just increase the total multiplier deployed of this strategy to take the far OTM hedging positions. This will help you in reducing your margin across both the main strategies and the hedging brokerage costs.


For example, if you deploy 1x of Bank Nifty Rapid Growth and 1x of Bank Nifty Ranger, you can deploy 8x of Bank Nifty Far OTM Hedge to take the hedging position across both the Bank Nifty #MoneyMachine strategies.

NOTE: Please check with your broker if it allows trading in far OTM Bank Nifty Options before deploying this strategy.


Please check out other strategies from Algos With Ankur in this series:    

Strategy Name 

Capital Required
(Un-hedged)

Capital Required
(Hedged)

# Entries

First Entry Time

Last Exit Time

# Legs

Description

  

Bank Nifty #MoneyMachines

Bank Nifty Rapid Plus

Rs. 5,50,000

Rs. 2,30,000

3 to 12+

9:30 AM

2:57 PM

2

Shorts 3 ATM CE and PE with dynamic SL to handle sideways and trending market. Takes multiple entries to adjust for large intraday movements.

Nifty #MoneyMachines

Nifty Rapid Plus

Rs. 3,70,000

Rs. 1,85,000

3 to 12+

9:30 AM

2:45 PM

2

Shorts 3 ATM CE and PE with dynamic SL to handle sideways and trending market. Takes multiple entries to adjust for large intraday movements.


Hedges - #MoneyMachineSubs

Bank Nifty Far OTM Hedge

Rs. 1,000

NA

1

9:25 AM

3:00 PM

2

Takes far OTM hedge positons to reduce capital requirement of Bank Nifty #MoneyMachine strategies

Nifty Far OTM Hedge

Rs. 1,000

NA

1

9:25 AM

3:00 PM

2

Takes far OTM hedge positons to reduce capital requirement of Nifty #MoneyMachine strategies

 


Telegram Channel
 - https://t.me/Algos_With_Ankur
In case of any queries related with Algo trading, please reach out to us on below mentioned platforms. Always happy to help. 

Telegram Group - https://t.me/Algos_With_Ankur_Community

Mail - ankur.kedia@gmail.com


*We are not SEBI registered and the strategy results are purely based on index movements. Past performance does not guarantee future performance. Please understand the risks before using this strategy. 

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