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created : 2 months ago| |  live deployment: 16

created : 2 months ago |  live deployment: 16

8 Whitehorse Chariot

1 rating

Strategy description

Nifty Directional Option Selling

(THIS IS NOT AN INTRADAY ALGO)

Avg Monthly Returns
Without BrokerageWith Brokerage @ 40 / order
Name of AlgoWhat it doesDescriptionSuggestionCapital1X1X2X5X10X
4 White Horse ChariotHedge with 4 OTM Option BuyProper Hedge in case of black swan event and trade goings against usNew comers, GO FOR THIS ONLY75,00011%1%6%9%10%
8 White Horse ChariotHedge with 8 OTM Option BuyCoverage of Risk is lesser in this case and Rewards are saved moreAfter 2 months, if you are enjoying profits and are confident on how this strategy works, move to this Option75,00015%5%10%13%14%
12 White Horse ChariotHedge with 12 OTM Option BuyThere is no coverage of risk in this case & its only to optimize RewardsNot recommended until 6 months of trading on above options. This is HIGH RISK / HIGH REWARD75,00017%7%12%15%16%
 

The strategy takes overnight position

  1. New Entry every Friday morning at 9:25 and 
  2. Strategy Exit at 3 PM on Thursday (Weekly Expiry)
  3. It works great with most of the brokers, as it will always Sell ATM Strikes. 
  4. It takes a directional Bullish position by Selling Nifty Put Options AND Bearish Position by Selling Nifty Call Options
  5. Hedged Algos listed above will take OTM Strikes and you need to check with your broker & make sure FAR OTM strikes are allowed 
  6. 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
  7. Best way to find is to place a OTM Buy order and see if it goes through & square of the positions immediately. 
  8. If the broker gave you an error, then the Hedged Algo won't work on your broker & you will need to find another option
  9. Please do paper-trade for few weeks / months and understand how it works / performs before going LIVE 

RISK / REWARD

  1. The max drawdown has been 18% on the capital required historically. 
  2. Please make sure you earn atleast 20% on your capital, for every 1X increase in your Multiplier
  3. DONOT increase multiplier looking at the results, as you need to save your capital in case of drawdowns
  4. If you don't follow the above Rule, you'll surely face problems at some time in future
  5. There is no Stop Loss in this system and it will exit based on the signals generated by the Strategy 
  6. 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

  1. Please don't change the multiplier during the week. 
  2. The only time you should increase / decrease your X Multiplier is between Thursday after market hours and Friday before market hours
  3. 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

  1. Test the strategy on 1X on paper trade 
  2. Or deploy on real account for 1 to 2 months and see how it works for you.
  3. Our "self interest" in offering this for Free is: it makes us feel good that we are contributing to retail traders. Thats all..! 
  4. Our intent to earn money is through trading our own Algos and not through commissions & fees from retail traders
  5. Thats just who / how we are. ENJOY :-)

Get in Touch with us @

  1. https://t.me/Quantumalgo
 

Happy Trading....!

Statistics

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