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created : 4 months ago| |  live deployment: 0

created : 4 months ago |  live deployment: 0

Prism Multicolor Index (Intraday, Dynamic options sell, Nifty+Bank Nifty)

Strategy description

Prism multi-color collection, as the name states, will show different colors - it will become directional or non-directional (taking positions on both sides) depending on indicators.

It will take directional only trades (bullish/bearish) in trending market and changes to non-directional (taking both side positions) in non-directional market


There can be times when there are no active entries especially when the market opens Gap-up and continues or vice-versa.

This is an Intraday strategy.


Strategy can handle small W and M market conditions well. 

Only loss cases would be big reversals and especially after Gap openings.


Strategies

Currently only the Index variant is available. We might come up with Nifty and bank Nifty variants in future.

Name

Instrument

Capital

Hedge

Prism Multicolor Index

Current week Nifty and Bank Nifty options

300K

No Hedge


Entry: 9:19 AM

Exit: 2:50 PM (2:41 PM on weekly expiry) - Times revised for sometime, looking at recent market conditions.

Adjustments: Between 9:19 AM to 3:05 PM

Position type: Sell current week options (Straddle or Directional, changes dynamically).

Stop loss: The strategy exits on 4K profit or -4K loss. There is no leg wise SL. Tests indicate better profitability and less DD when we didn't have any SL, so we will revisit this in near future. TSL added after 2500/- profit

Capital required: Please refer to the table above. While mentioned capital shall work with most of the brokers, we recommend you to check with your broker about margin requirements. Also, we recommend maintaining a 20K buffer on top of this.


Profit sharing:

  • Profit sharing will be on your gross profit as shown by TT.  

  • Invoices will be generated at the end of each month (On Fridays after monthly expiry).

  • Profit calculation will be done on High watermark basis i.e. 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.

  • Users will have to pay within 5 days of invoice generation. Defaulters will be blocked from all our strategies.

  • We may introduce fixed charges as well; in case we find more irregularities with profit share payments. Nothing to worry, for paying subscribers it will be adjusted from profit share.


Generic Instructions:

  • Do paper trade for 1 month before deploying it live.

  • This is not always in trade strategy, so there can be periods without any entry taken by Algo.

  • Never change multiplier (X) once algo enters any trade. This might result in a loop.

  • This algo can be deployed mid-week, however we do not recommend entering mid-week. We highly recommend starting from a new weekly expiry on Fridays.

  • Start small – start with 1X multiplier. If you want to increase, increase gradually once you earn profits. Suggestion (and not recommendation) is to increase only once you earn profit worth half the capital mentioned in this strategy, for each increase in multiplier (X) by 1. 

  • Always consider your risk appetite before you trade any algo. Know max loss that you can absorb and understand max. loss possible with any algo that you deploy. Don’t rely only on DD based on historical data – while History is truth, Market is supreme.

  • Slippages are part and parcel of the system. There can be various factors impacting slippages - queues at TT side, queues at broker side, queues at NSE side and other factors.


Shared codes and PnL summary: https://cutt.ly/qHNbzT9

BT Reports: https://cutt.ly/rHNnr3f

Strategy descriptions: https://cutt.ly/WHNng8g 


Group: https://t.me/algojewelsgroup

Channel: https://t.me/algojewels

Email: AlgoJewels@gmail.com


Disclaimer: We are not SEBI registered investment or financial advisors. We are not liable for any losses as a result of using this algo. Kindly discuss this with your financial advisor before trading this algo.

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