created : 7 months ago| | live deployment: 1
This is wonderful creation by AlgoMatic. Finally, we have something to which we can call as holygrail. Yep, it's a big term in trading world, but Smart Strangles are designed so wonderfully and the logic is awesome. Simple things can make wonders and this is prooved with Smart Strangles. Before launching, we've done Stockmock backtesting, Tradetron backtesting along with enough forward testing with our own capital in our account and the results were matching side by side.
Capital: 5.5 L (Including Buffer)
Max Loss Per day: 6000 (1x Multiplier)
Benefits of Smart Strangles
1. No Freak Trade
Freak trades doesn't happen in far otm options. Indexes like BankNifty and nifty. Freak trades happens only on atm. Since, we're trading far otm strangles, freak trade risk is minimal.
2. Less expensive
Many taxes are based on premium in option trading. Since, we're trading far otm, expenses are even lower than Thursday's expense.
Since, dd is really low, one can deploy Smart Strangles with unlimited capital.
5. Steady returns
6. Full emotion controls.
7. 0% deviation (I'm not talking about slippage)
Slippage are universal fact. We can't avoid slippages. But, slippages happen mostly in straddle. Far otm has minimal slippage.
8. Smart hedges so less extra burdens.
To make it more protective and to increase monthly returns we've added Smart Hedges into Smart Strangles. On the first day itself, you'll love hedges. It protects from sudden crash in the mkt, at the same time provides good margin benefits.
You're going to deal with algo trading. Algo trading isn't mean that you'll get profit only. Yep, monthly or quaterly returns may attract you a lot, but in any strategy daily profit isn't possible. There will be profit and loss too. At the same time, in ever strategy, you may see less or high drawdown. There are many things affect our returns. While backtesting, we can't include those factors like emotions, broker issues like quaterly sattlements. Low funds errors. Etc. If you have made your mind, before going live, paper trade it for a month. Then deploy it on 1x multiplier on live account. Then increase your multiplier every month 1x maximum. Don't jump to 5x - 10x directly.