Strategy description

Instruments Traded: Current Week Options Contracts of Nifty & BankNifty Index  

Trading timeframe : Intraday

Trading Style: Intraday Short Volatility, Non Directional Theta Decay

Trading Frequency: Passive. Generates very few trades.

Minimum Capital Required – 4 Lakhs 

Strategy Background:  This trading strategy aims to take advantage of intraday trends and volatility decrease to generate alpha. It tries to identify the direction of the short term intraday trend and makes non directional adjuted bets in the underlying indices options. This is a intraday strategy and never carries over position overnight - all positions are squared off before market close. This is a passive strategy and does not trade much.

This strategy can go through significant drawdown periods ( -5% to -10% of invested amounts) and might continue to be underwater for as long as 1 month under certain circumstances. 

User's responsibility: User is strongly advised to use a 0 brokerage broker for implementing this strategy, as brokerage costs can eat into your profits significantly. While choosing a broker user should research properly to make sure broker API is reliable with least execution issues. DO NOT use intraday strategies like this without a zero brokerage account.

Disclaimer:  I am not a SEBI registered investment advisor. Please note that neither any suggestion or solicitation is being made about investing in this strategy. This strategy trades derivative instruments and are inherently risky. If you subscribe and/or invest in this strategy you are doing so entirely at your own responsibility and risk. Kindly read through risk associated with derivative strategies published by SEBI.