created : 6 months ago| | live deployment: 25
Strategy description
Please note that Fixed Monthly Subscription charge is ZERO for the First month only. From second month onwards, there is no Fixed Monthly Subscription charge if you open trading account in FYERS or FIRSTOCK through my referral or map your existing FYERS or FIRSTOCK trading account to me and trade with these brokers. This is the best and win-win approach for both of us; If you want to trade my ALGO strategies with any other brokers then Rs.2,500/- is the fixed monthly subscription fee from second month onwards. Profit sharing is 12%. Please go through all the details provided below for complete understanding.
Strategy Name: BNF Dynamic Wealth Creator 2.5
Strategy By: Reddaiah Reddy Mula, Founder of Wealthy
Options
Capital Requirement: 2 lacs per 1 set on non-expiry
days and 1.3 lacs per 1 set (by buying 2000 points away deep OTM options for
margin benefit) on Expiry days; Ideally 2 lacs capital is enough to sell one
BANKNIFTY ATM straddle, however if at times if both CALL & PUT option
orders hits exchange exactly at same time then there is a possibility exchange
expects about 3 lacs capital to sell one ATM straddle. This may happen rarely
but possible. To avoid this risk you can buy 2000 to 2500 points away deep OTM
options to get Margin Benefit so that you can avoid the risk of margin shortage.
More on this is explained below in Strategy Description column and one free
strategy also shared which buys deep OTM options before this main strategy
sells ATM straddle.
Minimum Capital Required for subscription: 4.5 lacs
(should be able to trade 2 sets minimum).
Maximum Sets: 48 sets per one deployed strategy (if
you want to trade more than 48 sets then go for one more deployment of same
strategy with remaining quantity)
Strategy Description:
This is Intraday Options Selling strategy works on current week
BANKNIFTY ATM Short Straddles with multiple reentries and exits to capture both
Theta decay and Delta moves throughout the day (no.of reentries restricted to
avoid over trading). Entry time is at 9:25 on Friday, 9:20 on Monday and 9:17
on Tuesday, Wednesday and Thursday. Exit time is 2:58 pm on Expiry Day and 3:19 pm on other days.
Drawdown of this strategy is 4% and for a period of 40 calendar days as per the backtesting data of 2021, so in LIVE trading one must consider Drawdown might be 8 to 10% and for a period of 60 to 70 days in worst case scenario. Drawdown can happen any time, i mean it can happen from day 1 you have subscribed to strategy or after 10 days but one should be ready to face the Drawdown phase as its part of strategy and one should accept the same whole heartedly and should not get worried when strategy goes through Drawdown phase. Capital requirement to trade this strategy can be further reduced to 1.3 to 1.4 lacs by buying 2000 or 2500 points away OTM options in current week as hedge before strategy places main sell orders. Below is free add-on strategy which buys deep OTM options before "BNF Dynamic Wealth Creator 2.5" sells options. This add-on strategy can be deployed along with main strategy so that you don’t need to manually place BUY orders to avail additional Margin Benefit. I would advise to use this additional margin benefit on Expiry Day trading. Trade with 50% quantity on Fridays. For example if your usual quantity is 4 lots then trade with 2 lots on Fridays. On Expiry days one can consider trading with 1.5 times of the quantity traded on non-expiry days by buying 2000 points away deep OTM hedges. This is how i trade in my personal accounts. You can subscribe to below add-on strategy as per your requirement. There is no charge for using this add-on strategy. For more details, please read description column of below add-on strategy.
Deep OTM Hedges for BNF Dynamic Wealth Creator ALGOs - All
Days: https://tradetron.tech/strategy/1876234
Maximum Risk: Max loss for this main "BNF Dynamic Wealth Creator 2.5" strategy is set at 4000 per set (1 Short Straddle). In other words Max Risk per day is 2 to 2.25% when you allocate 2 lacs capital for 1 set (1 Short Straddle).
Recommendation: It is highly recommended subscribers trade
both version 2.5 and 3.0 strategies with equal quantity for better
Diversification of Capital and further smoother equity curve. One need to have
9 lacs capital to trade both these strategies but can be managed with 7 to 7.5
lacs capital as well by buying deep OTM options for Margin benefit. However, if
you want to trade only one, then choose either 3.0 or 2.5 version and stick
with it and do not switch between them.
Deviations in PNL:
All the Entry, Adjustment and Exit trades in this strategy
are taken at Market price; So, there will be small difference in premiums
received between difference accounts / clients and because of these differences
PNL changes client to client; All the Stop Loss and Adjustment trades are mainly
based on a percentage of premiums, so sometimes SL may hit for one client and
may not hit for other client due to small difference in premiums and this can
give significant difference in PNL at times when one compared with other
clients. However, in long run all such differences will even out as that is
natural process and one should accept this fact.
Trading Account: I have partnered with leading discount brokers FIRSTOCK and FYERS who provide maximum benefits for options sellers like Free APIs, 100% collateral (after hair cut), buy or sell any deep OTM options, Direct Mutual Funds, Basket order, etc. You need to trade through one of these brokers where your trading account is opened through my partner code. You don’t need to pay any fixed monthly Subscription fee in this case. Please check following link for more details and benefits of the brokers I have partnered with: https://www.wealthyoptions.in/broking . You can open trading account by clicking referral links provided below or contact me.
Link to open free FIRSTOCK account: https://kyc.thefirstock.com/dcob/#/?source=I&id=KS001
Link to open free FYERS account: https://open-account.fyers.in/?utm-source=AP-Leads&utm-medium=AP0731
Monthly Subscription Fee:
Profit Sharing: 12% profit sharing per month on the
PNL shown by Tradetron for individual clients. Invoices will be raised and sent
to respective clients on 1st of every month and clients need to
clear these invoices by 5th of every month, failing to do so such
clients will be blocked to use strategy from next day of due date. In case of
any losses at the end of month, loss will be carried to next month(s) and will
be adjusted from profits in following months. You are expected to leave ALGO to
do its job rather than manually intervening and closing trades early and such
actions are not accepted unless your Algo faces any Error in execution from
Tradetron end.
Support: Please make sure you generate token every
trading day before 9:15 am as that establishes connectivity between
Tradetron and your Broker, and it takes only 30 seconds to do it.
You can follow me in Twitter at: https://twitter.com/wealthyoptions1
How to configure your Trading account with Tradetron and make a start for ALGO Trading:
Subscribe to Tradetron Starter or Retail plan (or as per your choice) and make sure you chose NSE/NFO plan while subscribing to Tradetron plan. Then subscribe to my "BNF Dynamic Wealth Creator 2.5" or "BNF Dynamic Wealth Creator 3.0" or both with 50% capital allocation into each. Follow below instructions to configure your trading account with Tradetron to go LIVE.
Integrating FYERS trading account with Tradetron is very easy and straight forward and following video explains this part: https://www.youtube.com/watch?v=78zSKbraghQ&t=217s. You can also follow configuration instruction provided in following doc link: https://tradetron.tech/html-view/configure-fyers
Integrating FIRSTOCK trading account with Tradetron is very straight forward. You can follow simple steps mentioned in this document: https://tradetron.tech/html-view/Configure-Firstock
Once you configure your trading account with Tradetron and deploy strategy in "Live Auto" mode. You need to login into your FYERS trading account from Tradetron (through a link in “Broker & Exchanges” page) in Incognito mode everyday before 9:15 am IST to generate the API Token. It only takes 30 seconds to generate the token. For FIRSTOCK, it is even more simple, you just need to click refresh button in “Broker & Exchanges” page in Tradetron to generate token on every trading day before 9:15 am IST. More details are mentioned in configuration links provided above. That’s it you are all set for ALGO TRADING in LIVE AUTO mode.
Useful links to handle any Errors in Tradetron:
It is important for you go through below videos before you
start using TradeTron platform for ALGO Trading:
How to Resolve Error Execution in TradeTron: https://youtu.be/3A87TyQCEGU
Detailed Explanation about different Status of Strategy: https://youtu.be/PMqkzU0-Dmg
Exit on Error Settings: https://www.youtube.com/watch?v=nDHPLpW5oXU
How to resolve errors: https://qna.tradetron.tech/t/how-do-i-resolve-error-execution/28
General Suggestions: Success in Systems / Algo
trading mainly depends on trading with discipline and without manually
intervening (unless I advise in any very rare conditions) with ALGO. Do not
measure performance of strategy just by looking at 1 month performance; Trade
at least for 3 months before you start measuring or questioning performance of
the strategy. Please go through Drawdown, Drawdown period and then only go ahead subscribe to strategy
if you are completely convinced and comfortable to trade this strategy,
otherwise don’t subscribe. Best results in Systems / Algo trading are achieved
if we let Algo to perform on its own for long period of time. Strategy will be
evolved and improved further when needed due to any change in Market conditions
or dynamics.
It is generally recommended (not mandatory) to have trading with two brokers if you are trading with sizeable capital as that would help in taking counter trade in other trading account in case of any technical glitch from one or other broker. This is not only for Algo trading but in general it is a good risk management approach for the clients trading with bigger capital.
Disclaimer: I am not a SEBI registered investment, trading or financial advisor. Don't deploy my strategies based on past performance only, please go through all the details mentioned above and make your decision accordingly. I am not responsible for your profits or losses. Though backtesting and live performance results give an indication of what can be expected in future, however it is not guaranteed that strategy will perform in same way as it has done in the past. Although this strategy is fully automated, you are advised to keep a track on your account to monitor any deviations or errors due to any Technical glitches from Broker or Tradetron end. Options trading involves market risks, please consult your financial advisor before investing.
Parbati Roy 3 months ago
I have deployed this along with the 3.0 Version of the same strategy. Works best when you deploy both of them. It makes the equity curve smooth. Worth a try.
Gnanasekaran 3 months ago
I am using this strategy since deployment and its a excellent strategy given the volatile market for the past months. The most critical part of any option trader is protecting the capital which is very well taken care by this strategy with very less drawdown.. The strategy also captures maximum profit which opportunity exits. Algo trading almost reduced 90% of our online trading time and this strategy gives the safety and peace of mind. Thanks to the creater Mr Reddaiah Reddy Mula.
Ranjith Kumar Pothu 3 months ago
I have been using this Algo strategy for 3 months now, and the ROI is pretty good for all the three months. Especially, the most volatile month - June ended with a good ROI! I would definitely recommend this to anyone who is looking for an Algo strategy with a consistent ROI! You will find yourself complete stress free when you execute this strategy. Reddy is a Super Gem in jumping in and taking appropriate decisions. His extensive experience and mind set will make you feel so much comfortable. Reddy - Thank you so much for sharing this brilliant strategy and your knowledge with us!
rajan vinayagamoorthy 3 months ago
I am using the Algo from the initial period it was launched,one Algo for all kinds of markets i would say.So far the Algo has given outstanding returns.Good part is Mr.Reddy comes up lots of improvement to the Algo based on the current market conditions.We have ended in profits when most of the sytem traders incurred losses.Drawdown is less and ROI is good and hope it will do better in future.One of the best Strategies in TT.Thanks Mr. Reddy.
JItendra Mohapatra 3 months ago
I've been using this strategy for about 3 months now and it's proven successful in Live Auto mode. It works very well generating good profits after high volatility. The beauty of this algorithm is that it requires fewer orders. Another good thing about this algorithm is that continuous improvements are being done by the creator Mr. Reddy, who has a lot of experience in analyzing options markets and coming up with successful strategies without too much drawdown. I would recommend this to anyone who is willing to adopt systematic trading with discipline for good Results.
Bala Bandla 3 months ago
I have been using this and its variants since 3 months in Live Auto mode with a great success. the ROI is very good with lesser drawdown. It handles both volatile and normal days equally well, even in this tough month of June 2022 with premiums falling every week, the strategy did well in June and generated around 4% ROI , also beauty of this algo is fewer number of orders. Another good thing about this algo is continuous improvements being done by the creater Mr Reddaiah Reddy Mula who has very good experience in analyzing options market and coming up with successful strategies without too much drawdown. I would recommend this to anyone who is willing to adopt systematic trading and control emotions
Saivijay Kumar Chandra 3 months ago
I appreciate Wealthy Options for the beautiful strategy. Very nominal drawdown. Good ROI. Amazing strategy with very good adjusted risk and reward. In the current market situation, when most of the strategies are not performing, This strategy has come as an rescue to me. Less volatile and consistent profit making. I recommend serious investors looking out for best Algo. One of best strategy on TT. Thank you Wealthy Options!
Anupama B 3 months ago
I have been using this strategy for last 3months and it exceeded my expectations. It has given an excellent RoI in this volatile market condition and most importantly drawdown has been much lesser. Good to see positive ROI in all 3months. It's very useful to people like me who cannot spend time in front of system. One can subscribe to this strategy and spend your time and energy elsewhere with peace of mind. If you are new to system trading then ensure you consistently follow the same quantity everyday and let the algo do it's job. Thanks Mr Reddy for creating such a wonderful strategy with reasonable profit sharing.
K Bharat Kumar 3 months ago
I have been using these strategy since inception. Mr Reddy is been trying to improve Continuously all his strategy. Strategy handled tough months in FY and come out with Positive returns even though veterans are in drawdown phase. Cool strategy under 5% dd.
Bansal 3 months ago
I have used and studied this algo for past 2 months, one thing for sure is - it is a high reward with relatively managed drawdown when traded with discipline. The never give up attitude is reflected in it, no matter how bad the weather/volatility is algo is able to manage the situations except deep V/W patterns. Management of single leg mode and transition from single leg to non-directional can be optimized. Overall I am delighted to keep it in my portfolio for long term.
SUNAINA DEVI 3 months ago
Have been using it from past 2 months and its really good considering the volatility of the current market.
Sathya Narayanan 3 months ago
Awesome results in even highly volatile market conditions and drawdown is less. You are a STAR, Reddy.
Padmanabhan Rangarajan 3 months ago
I am using this algo live for two months, after paper trading for few weeks. Algo has been very resilient, considering the volatile nature of market recently. Drawdown is less and reasonable. Returns are very good. Algo's creator Reddy fine-tunes the algo on most weekends to improve ROI and more importantly to REDUCE the drawdown. No emotions, no anxiety, no manual intervention. I check the status mostly at the end of day to know the result. This intraday Algo is ideal for those who cannot spend time in front of screen to manage and monitor the trades. Looking forward to more such algos (scalping, breakout etc) from Reddy which will provide us a basket with diversified set of algos.