Strategy description

Strategy Overview:

This is an options selling strategy that makes money in trending and sideways markets, but may experience losses in volatile markets. The strategy aims to provide a hands-off trading experience with a defined risk management framework.

Before Starting Live Auto Trade:

1. Since paper trade results do not account for slippage, please run live offline trades for a minimum of 1 month.
2. After completing the 30-day live offline period, contact us for live auto results.
3. Once steps 1 and 2 are complete, you can deploy the strategy in live auto mode.

Risk Disclaimer:

This is an automated strategy that helps reduce emotional decision-making, follow trading rules, and manage trades efficiently. However, as with all trading strategies, there will be both upside and downside. The strategy is fully automated, but errors in terminals or slippage may occur. We advise users to monitor their accounts for any significant deviations and act accordingly.

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 Points: Low capital requirement, defined risk, and high profit potential.
5. Maximum Single Day Loss: ₹4,000 for 1x multiplier
6. Maximum Drawdown: In rare conditions, maximum drawdown (DD) may continue for 4-5 days, but stay calm and stick with the strategy.
7. Execution Time: It has been observed that 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 the gross profit.
2. Profit-sharing invoices will be raised twice a month, on the 1st and 15th, with 18% GST applicable. Pending invoices must be cleared before the next invoice date.
3. If the strategy results in a loss, no profit-sharing invoice will be generated. The loss will be carried forward to the next profit-sharing period.

Important Instructions:

1. Backtest results are not available for subscribers. Please test the strategy on paper trading mode first and calculate net profit after expenses.
2. Sometimes the strategy’s defined 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 exiting between market hours or start the strategy during market hours.
4. Always maintain the minimum capital along with the buffer amount. The funds mentioned are without leverage.
5. If you are using Angel One, avoid using desktop and mobile terminals while deploying the strategy live, as this may cause errors in order execution. Use a web-based terminal instead. For issues with other brokers, please contact Tradetron.

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 if necessary.
3. For hedged strategies, ensure all positions are filled before acting.

Follow this to Minimize Errors in Algo Trading on Tradetron:

1. Daily Morning Checks: Ensure your API token is renewed and that your broker account has sufficient funds.
2. Entry and Exit Rules: We do not allow live auto one-click methods for running the algo, as this may cause discrepancies in P&L records.
3. Do not exit positions from the broker terminal; all exits must 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 than expected.

Brokers Using Tradetron:

1. You can choose your broker, but ensure it is properly integrated with Tradetron. Follow Tradetron's guidelines to avoid errors.
2. If you consistently experience errors, it may be due to your broker’s issues and not Tradetron or the strategy itself.

Profit Sharing:

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

PNL Target and Stop Loss:

1. Do not compare paper trading P&L with live auto P&L, as entries, exit prices, and execution times may vary.
2. The strategy has a defined stop loss, target, and partial target booking system, with 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 your token is activated.

Margin Requirements:

1. The strategy requires ₹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