created : 7 months ago| |  live deployment: 1

created : 7 months ago |  live deployment: 1

4072 - TSL 2000 - options buying market strategy Bank Nifty

Strategy description

Some Changes have been done in the strategy to improve the performance.

You may chose to wait and watch the performance and then decide on the deployments.


Ideally trade 2 months minimum with only 1 lot. Once your profit is 150% of capital then only increase lot size. MOST IMPORTANT.

Dear Friends,

Literally after 100s of combinations and trying to make strategies work, 4072 is by far the strategy with the best results in terms of everything.

  1. Last 2 years profits are the highest.
  2. Loss making months are very less with losses almost limited to below 3000 per month. Check back test below
  3. Number of trades being relatively much lesser (7 to 8 trades per day average, counting entry and exit as 2 trades)
  4. No fixed target for profit - VIX effect will not be much.

Please note - IMPORTANT

  1. Stock market algo strategies cannot make anyone millionaire overnight.
  2. Algo strategies will need lots of patience and commitment.
  3. Every strategy has drawdown periods. Many strategies can give good profits in 1st 15 days and losses in next 15 days. If we are in higher multiples during loss making days, all our profits get wiped off. So read the 2nd line from top again.
  4. Give any strategy atleast 3 months to perform consistently and with no manual interference.
  5. Do not book your profits early. This strategy has trailing stop loss at 2000. Which means once the profit hits 2000, there wont be any loss for the day. worst is the market will turn and strategy will exit at zero. So if the profit is 3000, then strategy will exit at 1000 profit and so on. Trust this is clear.

The strategy will be live for whole day, but take trades only when condition is live. Once strategy exits by TSL, it will reactivate only next day. So no need to pause after exit.

Attached is the 2 years back test of this strategy till Feb 2022, and as can be seen, the profits are much better and loss making months are very less with less losses per month.

We suggest you do some paper trading for few days, see if the pattern suits you and then take the decision to go live. There will be loss making days in between please note again.

Profit target - Varying as per strategy.

Trailing Stop loss - Activates at 2000 profit. 
Which means once the profit hits 2000, there wont be any loss for the day. worst is the market will turn and strategy will exit at zero. So if the profit is 3000, then strategy will exit at 1000 profit and so on. Trust this is clear.

Stop Loss - Varying as per strategy. (Since this is an option buying strategy, so loss can never be unlimited, it is always restricted)

Entry - Between 0935 to 1505 hours. So, even if it is active, it will not take trades after 1505 hrs.

Exit - 1515 hrs. Will reactivate only next day.

DO’s –

  1. Always deploy any strategy before market hours only.
  2. Deploy first on paper trading and check the actual paper trades at least for a month before deploying live.
  3. Always start with 1x multiplier or with your capacity to bear the days loss per multiplier. Do not change multipliers frequently.
  4. Ideally, each multiplier should be increased after 1 month only, or till profits are 150% of the capital, as then you will have past profits to take care of a particular month’s losses. 
  5. We advise to ideally let all strategies run as per designed without any manual interference. Tradetron back tests are based on zero manual interference.
  6. If you do not wish to trade on any day, you may pause the strategy for that day.
  7. Do check the max drawdown for any strategy, it is the maximum loss you may have to incur before the strategy again starts giving profits. Max drawdown should be within your acceptable limits for losses.
  8. Join our telegram channel, for any queries you may have and for updates on any strategies.

DON’T’s –

  1. Do not increase your multiplier suddenly looking at profits for a week or 10 days. Markets have a way of taking back some part of the profits in the balance month. If multiplier is suddenly increased, it may lead to losses.
  2. Do not deploy any strategy in the middle of the market hours, wait till after the market hours or deploy just before market opens.
  3. Don’t judge any strategy due to big profits for a month or losses in next month, as it will return to profits eventually.
  4. Don’t book your profits low and early. Let the strategy run its course. Repeating that the back tests are based on zero manual interference.
  5. Don’t change your strategies frequently. People deploy a strategy when it is giving profits and delete it during a drawdown. Drawdowns are a part of profits and we need to accept them.
  6. Don’t panic if a strategy gives losses for 2 or 3 consecutive days. Usually, such losses are followed by big profits. Last 2 years back tests indicate that.

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Disclaimer: The Royal Mint or I'm not SEBI registered investment or financial advisor. Please do not deploy any of our strategy based on past performance only. All the P&L we update on our telegram channel is our own Live Auto P&L (unless mentioned as paper trading) and it is for information purpose only. We are not responsible in any way, for any profit or losses incurred in your account by deploying any of our strategies.