created : 6 months ago| | live deployment: 2
Strategy description
This strategy is a positional trend following option selling strategy aimed to earn profit through market movement on trending days and theta decay during the sideways market. This is a hedged strategy that buys far OTM Call/Put to reduce the margin requirement.
ENTRY TIME: 9:16 AM on the start of new weekly expiry (Mostly Friday)
EXIT TIME: 3:00 PM on weekly expiry (Mostly Thursday)
Position type: Naked Call/Put as per market direction with 8 strike OTM hedge
Stop loss: There is no fixed SL on positions. Positions get changed based on reversal detection in the market
Hedging: Buy OTM Call/Put 8 strikes away from ATM
Backtest Reports
Capital required: 50K
The above capital is verified in Alice blue and Finvasia and it includes around a 25% cushion for drawdown. Kindly check with your broker once about the margin requirement.
Profit-Sharing:
There is 5% profit sharing on monthly basis. Invoice will be generated at the end of each month. Profit calculation will be done on High watermark concept, which means loss incurred in any month will be settled against profit in the next month and profit-sharing will be applicable only on the profit remaining after settling previous outstanding losses.
Important Points :
1. This strategy can be deployed on any day of the week but it is highly recommended to start it with new weekly expiry from Friday morning.
2. Starting this strategy closer to the expiry increases risk with comparatively lesser rewards and leaves less time for recovery in case of initial losses. Request you not to deploy it during mid-week.
3. Kindly paper trade this strategy for at least 1 month before deploying LIVE. Understanding the nature of any algorithm is a good practice before starting to trade it.
4. Though this strategy is currently free, it would be chargeable in the near future. This is just to sensitize new subscribers and avoid surprises.
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!!!!!!!!! HAPPY TRADING !!!!!!!!!
Disclaimer: I'm not SEBI registered investment or financial advisor. Kindly discuss this with your financial advisor before trading this algo.
Subscribers
Tony Stark 5 months ago
Less DD
AL-GOO 5 months ago
Amazing Strategy
Arun Pal 5 months ago
Thumbs up
Tarun Bhal 5 months ago
Good one
amit kumar 5 months ago
I cant thank for this wonderful strategy. Thanks a lot to Creator & team; This is the most intelligent and witty algo strategy i have seen till date. Just look at it how beautifully it changes gears according to live market conditions, it's simply a pleasure to watch it doing live adjustments. Your backtesting reveals that it is profitable and unique in terms of recovery, then why to bother about MTM so much. Sometimes emotions run high when a huge positive MTM goes but In the end it will give you profit on a weekly basis, if not, then bigger profit will be coming soon. Thanks again!!!
Hemant Pandey 5 months ago
Amongst a great set of algos on TT, which gives good results if executed in a disciplined way. I am consistently following this strategy since its inception after the NIFTY boomer. Creator has put a Reasonable fee to pay. A little aggressive (or forward) as compared to similar algos on TT but unique in terms of recovery. Aggressiveness is currently in favor right now and proven by backtest data. Simply put; It's a beautiful algorithm !! Thanks to the Creator.