Strategy description

Lions Quest                                                                                                                                                   

Minimum effort, maximum reward. That’s the Holy Grail, isn’t it?                                                            

Lions don’t work often                                                           

“From morning to late afternoon, when the African sun is hot to the point of unbearable, lions can be found lounging and relaxing. Lions may rest about 20 hours a day” — AnimalsMom.com       

Just like a Lion, perhaps it’s actually possible to spend most of your week napping, if you want.

To get the lion’s share is to firstly determine the hunt.                                                                                  

To determine the hunt - we initiated with the research on finding the periods in the week which presents handsome risk/reward scenarios.  

Carve out specific ‘hunting’ time                                                                                                                    

Just like a Lion, when it’s time to hunt, it’s time to hunt.                                                                               

From our rigorous back-testing on various option selling strategies, we concluded that it is not necessary to keep trading for the whole week but instead trade just 2 days a week (Wednesday & Thursday) which presents the highest money making opportunities. 

Go all in for a small amount of time                                                                                                                                                                                                                     

“It’s more like a lion hunting and less like a marathoner running. You sprint and then you rest. You reassess and then you try again. You end up building a marathon of sprints.” — Naval  

Similarly, the Lion's Quest System allocates the money and takes trades only on these specific days of the week.                

Word Of Caution                                                                                                                                       

Remember, Lions don’t stress about a failed hunt. In fact, a lot of their hunts are unsuccessful. Lions can only hunt successfully on their own up to 17% of the time.                                                              

From the strategy's perspective - Not all trades will be winning trades but trading on the RIGHT days at RIGHT time may help in trading on the best bets which in the long run - will yield satisfactory results.   

Strategy At A Glance

·         The goal of an absolute return strategy is to produce positive returns, irrespective of market conditions. This differs from relative return strategies, such as traditional buy-and-hold strategies, that measure success based on performance against a specified index. 

·         A Positional Strategy that sells directional option spreads in Bank Nifty.                                 

·         It is Bank Nifty Option Selling strategy based on Technical Indicators and Option Geeks 

It is Hedged strategy

How It Works

·       It is an option selling strategy - which primarily sells option straddles on just 2 days of the week (Wednesday & Thursday).

·         Lion's Quest Strategy opens a straddle on Wednesday with an objective of (a) theta decay (b) riding a trend on either side of the market if there is a break-out and simultaneously closing the other position.  In most cases, Lion's Quest Strategy carries over (positional) the position opened on Wednesday to Thursday.

On Weekly Expiry  Day (normally Thursday) - this strategy closes its position carried forward from the previous day and makes one more position with a different set of risk/reward parameters on the Weekly Expiry Day (normally Thursday) which is closes before the market closing (intraday).   

Portfolio Equity (In Rupees)

Drawdowns  (In Rupees)

Month-Wise Returns  (In Rupees)

Link for - Detailed Back-testing & System Metrics

https://docs.google.com/spreadsheets/d/1DdVkjKlKMGkRJb_ckJCGBu9FdLoYknffDB-Q4lm49LA/edit?usp=sharing

Portfolio Equity (In Rupees)