Strategy description

Strategy Overview:

The 5% System – BankNifty

This strategy involves option selling and works in trending and sideways markets. Losses can occur in highly volatile markets. The strategy is designed for deployment on BankNifty, with specific days dedicated to trading.

Trading Days:

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

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 to understand its performance.
2. After completing the 30-day live offline period, contact us for live auto results.
3. Once the above steps are completed, you can deploy the strategy in live auto mode.

Risk Disclaimer:

We are not SEBI-registered analysts, and we do not make any claims or guarantees regarding your profits or losses. Please consult your financial advisor before using this algorithmic trading strategy. Paper trading and monitoring the strategy in a simulated environment for 4-6 weeks is the ideal way to understand its workings before live deployment. As with any trading setup, algorithms can result in both profits and losses. Users should not expect unrealistic returns from an automated strategy.

Important Instructions:

1. Read all descriptions carefully and ensure you understand the strategy before subscribing.
2. Deploy the strategy in live offline trading until you are comfortable with it.
3. If you are not patient or do not understand Algo trading, do not subscribe to this strategy.

About the Strategy:

1. Trade Type: Option Selling (Straddle Selling)
2. Entry Time: Between 9:45 AM and 2:00 PM
3. Exit Time: 3:13 PM, according to pre-defined criteria.
4. Capital Required: ₹3,00,000 for 1x multiplier
5. Maximum Single Day Loss: Up to ₹4,000 for 1x multiplier.
6. Margin Requirement: ₹1,50,000 for a normal position and an additional ₹1,50,000 buffer margin for 1x multiplier.
7. Strategy Counters: Single counter per day.
8. Win Rate: More than 60% with losses up to 40%.

Profit Sharing:

1. Profit Sharing: 20% of gross profit.
2. Profit-sharing invoices are generated on the 1st and 15th of each month, with 18% GST applicable. Invoices must be paid on time to avoid being blocked from all strategies.
3. If there is a loss, no profit-sharing invoice will be generated for that period. Profit-sharing will be calculated based on the net profit.

Important Instructions for Error Management:

1. Check the notification log to understand the type of error and act accordingly.
2. In case of margin errors, manually check real trades in your terminal and square off all positions if needed.
3. For hedged strategies, check if all positions are filled and take action as necessary.

How to Minimize Errors in Algo Trading on Tradetron:

1. Compulsory daily morning checks to ensure your API token is renewed and that your fund availability is confirmed with the broker.
2. Do not use one-click methods for live auto. Always run strategies in live auto mode to avoid calculation mismatches with P&L records.
3. Do not exit positions from the broker terminal. All exits must be done from Tradetron to avoid P&L errors.
4. Start strategies before or after market hours to avoid mismatched entries due to market movements during active hours.
5. For brokers using Tradetron, ensure you follow their guidelines to avoid errors during execution.

About Margin Requirements:

1. Maintain ₹3,00,000 as the minimum capital, and we recommend keeping ₹3,50,000 to avoid margin errors during drawdowns.
2. Additional margin can help control expectations for returns. Keep in mind that using cut-to-cut margin might lead to misleading returns.

Exchanges and Capital Requirements:

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

Note: This strategy requires careful consideration, and we advise users to follow the procedures outlined to ensure proper execution and avoid errors.