created : 1 year ago| | live deployment: 3
BANK Nifty Directional Option Positional Selling Strategy
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
- For Hedge it will take OTM Strikes and you need to check with your broker & make sure FAR OTM strikes are allowed
- IIFL 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 OTM strikes based on the Algo you deploy
- Please do paper-trade for few weeks / months and understand how it works / performs before going LIVE
- Its is very Cost Effective strategy. It just take Average 50-60 orders in a month , so just AVG Rs 1000 brokerage with 1X and with higher multiplier , its almost negligible cost
RISK / REWARD
- The max drawdown has been 20% on the capital required historically.
- 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
1. Best time to take entry?
Please take entry in Friday opening along with us, any delayed entry will not match the PNL and trades with ours.
2. Is it okay if my trades are different than paper?
Yes, strategy checks conditions individually for each account
3. Manual exits and Reactivation of strategy?
We do not suggest manual interference.
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