Strategy description

The 5% System No 1 - Nifty

Trading Days:

1. Monday - Nifty
2. Tuesday, Wednesday - Nifty
3. Expiry: BankNifty

Note:

This is an options selling strategy that is designed to work in trending and sideways markets. Losses may occur in volatile markets.

Before Starting Live Auto Trade:

1. Since paper trade results do not account for slippage, run the strategy on live offline mode for a minimum of 1 month.
2. After completing the 30-day live offline period, contact us for live auto results.
3. After completing the above steps, you may deploy the strategy on live auto mode.

Risk Disclaimer:

This strategy is fully automated and helps avoid emotional decisions, but it is important to note that there are risks involved. There will be both upsides and downsides, and it is essential to stay consistent with the strategy. Slippage, terminal errors, and other technical issues may occur. We recommend monitoring your account to track any significant deviations.

About the Strategy:

1. Trade Type: Options Selling Strategy
2. Entry Time: Between 9:45 AM and 2:00 PM
3. Exit Time: 3:13 PM, as per predefined criteria
4. Key Features: Low capital required, defined risk, and high profit potential.
5. Maximum Single Day Loss: Up to ₹4,000 for 1x multiplier
6. Maximum Drawdown: In rare conditions, maximum drawdown may last 4-5 days, but remain patient.
7. Execution Time: It takes about 10 seconds to execute orders, so slippage may occur based on market conditions.
8. Win Rate: More than 60% with losses up to 40%
9. Margin Requirement: ₹150,000 for a normal position, with an additional ₹150,000 buffer margin for 1x multiplier.
10. Strategy Counters: Single counter per day

Profit Sharing:

1. Profit Sharing: 20% of gross profit.
2. Profit-sharing invoices are raised on the 1st and 15th of every month, with 18% GST applicable. Invoices must be cleared before the next invoice date.
3. If the strategy results in a loss, no profit-sharing invoice will be generated for that period, and the loss will be carried forward to the next invoice period.

Important Instructions:

1. Backtest results are not available for subscribers. Test the strategy on paper trading mode first and calculate net profit after all expenses.
2. The strategy has defined target and stop loss, but sometimes the target may be missed by a few points. Active traders can book profits and pause the strategy for the day once they reach their daily target.
3. Do not reactivate the strategy after exit between market hours or start it during market hours.
4. Always maintain the minimum capital along with the buffer amount. Funds mentioned here are without leverage.
5. If you are using Angel One, avoid using desktop and mobile terminals for live deployment. Use a web-based terminal instead. For issues with other brokers, contact Tradetron support.

How to Handle Errors:

1. Check the notification log to understand the type of error and act accordingly.
2. If margin errors occur, the algorithm may take partial orders. Verify real trades in your terminal and square off all positions as needed.
3. For hedged strategies, ensure all positions are filled before taking action.

Minimizing Errors in Algo Trading on Tradetron:

1. Daily Morning Checks: Ensure your API token is renewed, check fund availability in your broker account, and confirm that all live deployed algos are active.
2. Entry and Exit Rules: We don’t allow live auto one-click methods for running the algo, as it may cause discrepancies in P&L records. Users who do this will be shifted to the block list.
3. Do not exit positions from the broker terminal; all exits should be done through Tradetron only (except on Tradetron error days).
4. Do not start the algorithm during market hours, as this may result in a different entry price.

Brokers Using Tradetron:

1. You may use any broker of your choice, but ensure to discuss with Tradetron and your broker for proper integration to avoid errors.
2. If you experience consistent errors, it is likely due to your broker’s issues, not Tradetron or the strategy itself.

Profit Sharing:

1. Read the strategy description carefully, as all profit-sharing details are provided there.
2. Profit-sharing invoices will be raised twice a month. Please clear your invoices on time to avoid being blocked from all strategies.

PNL Target and Stop Loss:

1. Do not compare paper trade and live auto P&L, as execution prices and exit times may vary.
2. The strategy includes a defined stop loss, target, partial target booking, and trailing stop loss based on P&L.

Strategy Pause, Reactivate, Exit:

1. No action is required after strategy exit. It will automatically reactivate after 12 hours.
2. Simply log in to confirm that your token is activated.

Margin Requirements:

1. The strategy runs with ₹150,000 margin but it is recommended to maintain ₹300,000 to avoid fund errors during drawdowns.
2. Extra margin helps control return expectations. Using cut-to-cut margin may show misleading returns.

Exchanges:

1. Exchanges: NFO
2. Capital Required: ₹3,00,000 for 1x multiplier
3. Monthly Fee: ₹500 + 20% GST