Strategy description

This is a Intraday Only Nifty option buying strategy which buys weekly options in Nifty based on the Range Breakout. It is a simple but effective strategy.

Capital Required: 20k. Actual margin required would be around 10k as we trade with 2 lots minimum. Buffer margin is for drawdowns / slippages if any.

Entry/Exit time: There is no defined entry or exit time. However most of the trades should happen between 11.00am to 12.30 pm

Number of trades : System should take max 2 trades in a day.

Risk Reward Ratio : Risk to reward ratio is 1:2 (Approx loss per trade should be around 700 and approx profit per trade can be around 1200) Slippages is accounted for.

FAQs:

1. Can I deploy the strategy any time or is there any suggested time?

Ans: We recommend to deploy the strategy by 11.00am max or after market hours anytime.

2. Can I increase or decrease multiplier when the trade is active?

Ans: By the design of the algo, increase or decrease of multiplier does not impact the positions already taken. However is not advisable to increase or decrease the multipliers inconsistently. We see that such changes results in lower profit or higher loss as people increase multipliers after profitable entry and next entry may be a loss or vice versa.  However at the end of the day you can set the multiplier max upto 5x

3. I have exited manually, how to re-enter?

Ans: As and when the new signal is generated, you will automatically get that trade.

4. Is it monthly options or weekly options? Are there slippages?

Ans: This algo deals with weekly expiry options. However being a market orders, some slippages is unavoidable. Also tradetron platform may lag certain times depending upon the load and other technical factors.

Test with paper trade first and then go-live if it is interesting. 

Although the algo takes care of the entry, exit, adjustments, you are advised to keep an eye over the account to watch for any errors which could be due to margin shortage or technical issue etc.

Disclaimer: I am not SEBI registered advisor or Portfolio Manager. I do not take responsibility for any losses that might occur as a result of deploying this strategy nor do I guarantee any returns. If you are not aware of risks associated with FNO trading, you are strongly recommended to understand, analyse and then trade on FNOs.