created : 2 months ago| | live deployment: 16
Strategy description
Nifty Directional Option Selling(THIS IS NOT AN INTRADAY ALGO) | Avg Monthly Returns | ||||||||
| Without Brokerage | With Brokerage @ 40 / order | ||||||||
| Name of Algo | What it does | Description | Suggestion | Capital | 1X | 1X | 2X | 5X | 10X |
| 4 White Horse Chariot | Hedge with 4 OTM Option Buy | Proper Hedge in case of black swan event and trade goings against us | New comers, GO FOR THIS ONLY | 75,000 | 11% | 1% | 6% | 9% | 10% |
| 8 White Horse Chariot | Hedge with 8 OTM Option Buy | Coverage of Risk is lesser in this case and Rewards are saved more | After 2 months, if you are enjoying profits and are confident on how this strategy works, move to this Option | 75,000 | 15% | 5% | 10% | 13% | 14% |
| 12 White Horse Chariot | Hedge with 12 OTM Option Buy | There is no coverage of risk in this case & its only to optimize Rewards | Not recommended until 6 months of trading on above options. This is HIGH RISK / HIGH REWARD | 75,000 | 17% | 7% | 12% | 15% | 16% |
The strategy takes overnight position
- New Entry every Friday morning at 9:25 and
- Strategy Exit at 3 PM on Thursday (Weekly Expiry)
- It works great with most of the brokers, as it will always Sell ATM Strikes.
- It takes a directional Bullish position by Selling Nifty Put Options AND Bearish Position by Selling Nifty Call Options
- Hedged Algos listed above will take OTM Strikes and you need to check with your broker & make sure FAR OTM strikes are allowed
- Aliceblue and few other brokers allow FAR OTM strikes. Zerodha & many other brokers do have issues with FAR OTM so pls make sure if your broker allows 4, 8, 12 OTM strikes based on the Algo you deploy
- Best way to find is to place a OTM Buy order and see if it goes through & square of the positions immediately.
- If the broker gave you an error, then the Hedged Algo won't work on your broker & you will need to find another option
- Please do paper-trade for few weeks / months and understand how it works / performs before going LIVE
RISK / REWARD
- The max drawdown has been 18% on the capital required historically.
- Please make sure you earn atleast 20% on your capital, for every 1X increase in your Multiplier
- DONOT increase multiplier looking at the results, as you need to save your capital in case of drawdowns
- If you don't follow the above Rule, you'll surely face problems at some time in future
- There is no Stop Loss in this system and it will exit based on the signals generated by the Strategy
- It has a target of 75% of the premium and then takes the next ATM strike in the direction of the trend
THINGS NOT TO DO
- Please don't change the multiplier during the week.
- The only time you should increase / decrease your X Multiplier is between Thursday after market hours and Friday before market hours
- If you change your multiplier in between the strategy will not work properly and you WILL incur losses
This strategy is absolutely FREE to use, no strings attached
- Test the strategy on 1X on paper trade
- Or deploy on real account for 1 to 2 months and see how it works for you.
- Our "self interest" in offering this for Free is: it makes us feel good that we are contributing to retail traders. Thats all..!
- Our intent to earn money is through trading our own Algos and not through commissions & fees from retail traders
- Thats just who / how we are. ENJOY :-)
Get in Touch with us @
- https://t.me/Quantumalgo
Happy Trading....!
Subscribers
Statistics
Ajay Singh 2 weeks ago
As on date, its a great strategy.