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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 


https://i.ibb.co/SVGDbr1/Screenshot-2022-04-17-at-11-55-49-PM.png


  • BACKTEST REPORT



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. 

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