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created : 5 months ago| |  live deployment: 0

created : 5 months ago |  live deployment: 0

Bank Nifty Rapid Plus - #MoneyMachine

2 ratings

Strategy description

  

This strategy takes short positions in Bank Nifty options and has a dynamic adjustment mechanism based on the market conditions to provide superior results in trending as well as sideways market. It is a passive income generation strategy with a focus on earning theta decay (time component of the premium) during intraday. 


The strategy is designed in such a way to enhance returns with limited capital risk in a highly volatile market. 


STRATEGY DETAILS

Entries: Multiple entries per day with 3 lots of CE and PE each (2 legs in total) - takes about 3 to 12+ entries per day depending on market volatility and other conditions

First Entry Time: Dynamic range between 9:30 to 9:45 AM, depending on meeting criteria

Target: None

Leg Level Stop Loss: Each Leg has Dynamic SL

Last Exit Time: Dynamic range between 2:45 to 3:00 PM

Dynamic TSL: Conserves profit via a Dynamic Trailing Stop Loss which activates at varying levels depending on certain market and entry conditions

Strategy Level Stop Loss: Maximum loss per entry capped between 4K to 4.5K. Slightly varies due to slippage.


As the strategy takes multiple entries per day, only deploy this strategy if your brokerage is either free or less than INR 10 per trade. 


Capital Requirement: As per current margin requirements, Bank Nifty Rapid Plus requires margin of approx. INR 5.5 Lakh (With Zerodha). Margin requirements across brokers may differ. Users are suggested to check margin requirements with their broker for short selling three lots of Call & Put. (Note: Capital requirement is purposefully kept higher to accommodate  drawdowns and increased margin requirement on highly volatile stop loss hunting days.)


Want to reduce capital requirement?: Also deploy Bank Nifty Far OTM Hedge (click here) along with this strategy in 1:4 ratio to reduce margin requirement by over 60% to INR 2.30 Lakh approximately. Please reach out to us for further information. 


Be patient with the positions as it's time decay strategy, it will take its time to get you the P&L in the intraday. If you stop it in between or exit, it might not give you the expected results. Theta decay happens faster closer to expiry, so accordingly, we will get better results closer to expiry... so stay invested :) 


Review the Current P&L and Back Testing Results


Live P&L Status Details : https://bit.ly/AlgosWithAnkur


Back testing results :  


 

Before going for Live deployment:


1.  Paper trade for a few days (at least a week) and understand the dynamics. Take your time and analyze the results for a few days before opting for live trading. Don't fall for instant gratification. Be patient. 

2. Diversification: Prefer diversifying your capital across multiple strategies instead of using a higher multiplier in one. All strategies are good. Each one will have its good and bad days.

3. No manual intervention: Once you decide to deploy, make it a point to not interfere manually even if there is a loss. Don't use your personal discretion. Deploy only when you start trusting the strategies after paper trading.

4. Multiplier: Don't increase/decrease the multiplier on the basis of profits/losses. Keep it constant for at least a week. Else you might make losses on higher multipliers and profits on lower.

5. Stick to the strategy for at least a month: Don't discard any strategy very quickly. It's not a quick-rich scheme. You need to accept losses as well. Many people delete the deployments if they suffer a loss on the first day. This is not the right way of systematic trading. 

6. Intraday deployment and changes: Don't make any changes during trading hours eg: changing multiplier, pausing/reactivating, etc.


In case of any queries related with Algo trading, please reach out to us on below mentioned platforms. Always happy to help.

 Telegram Channel - https://t.me/Algos_With_Ankur

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

 Mail - ankur.kedia@gmail.com


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

2:57 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.


 

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



*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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