Strategy description

BANKNIFTY Options Buying- 

(Royal Trader)

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This strategy is not intraday strategy sometimes it will carry over to next day.  

Trade Type: NRML 

INSTRUMENT = BANKNIFTY Options

NO. OF LOTS = 1 LOT PER 1X MULTIPLIER

SL:1500/- 

Profit Booking based on trend and volatility of market move have many conditions minimum profit amount is 2000/-

Trades may not execute every day and sometimes many trades may execute in a day.

              Trades will execute purely on technical parameter basis. 

royaltrader99

Profit Sharing:- 10% on Gross Profit

1. Compulsory Profit Sharing for this strategy. Don’t compare with our other strategy performance as each strategy is different.

2. For Every Month there are profit sharing invoices for all with 18% GST and need to pay on Tradetron platform. Required To clear pending invoices before 15days. For 1st  invoice those fail to pay, regenerate invoice on next month with fresh pnl record as per tradetron only. Those have fail to pay invoices of 1 months, get shifted to defaulter list and Block for all strategies.

3. PNL consider for all users as per Tradetron record only. So follow Tradetron process for entry and exit. Compulsory exit from Tradetron only.

4. For Loss there are not profit sharing invoices generated, so whenever strategy in profit there are profit sharing invoices. 

E.g. If in 1st Invoice date you got profit Rs. 10000, you will need to pay 10% means Rs. 1000 to Tradetron via invoice. 

Suppose in 2nd Invoice date you face loss Rs. 5000 then there are no any profit sharing and this loss get balanced in next Invoice date. Now in 3rd Invoice time you got profit Rs. 10000 again. Now the net profit will be 10000-5000(previous loss)=5000 Rs. so you will need to pay 10% on Rs. 5000 means Rs. 500 to Tradetron via invoice.

Before going for Live deployment: 

1.  Paper trade for a few days (at least a week) and understand the dynamics. Take your time and analyze the results for a few days before opting for live trading. Don't fall for instant gratification. Be patient. 

2. Diversification: Prefer diversifying your capital across all 5 strategies instead of using a higher multiplier in one. All strategies are good. Each one will have its good and bad days.

3. No manual intervention: Once you decide to deploy, make it a point to not interfere manually even if there is a loss. Don't use your personal discretion. Deploy only when you start trusting the strategies after paper trading.

4. Multiplier: Don't increase/decrease the multiplier on the basis of profits/losses. Keep it constant for at least a week. Else you might make losses on higher multipliers and profits on lower.

5. Stick to the strategy for at least a month: Don't discard any strategy very quickly. It's not a quick-rich scheme. You need to accept losses as well. Many people delete the deployments if they suffer a loss on the first day. This is not the right way of systematic trading. 

6. Intraday deployment and changes: Don't make any changes during trading hours eg: changing multiplier, pausing/reactivating, etc.

Most important points I learned in my trading carrier: Trade Psychology - If you are using a systematic/auto trading strategy that is already well back tested and if you are still worrying about daily losses, then you have a problem. You need to STOP trading immediately and learn how successful traders think when they are in deep drawdowns/losses. If your mindset is looking at short term P&L, there is a high chance that your trading carrier will also be short lived. Both are highly correlated. Positive Expectancy - Whatever we do and however we tune the strategy, we can't get profits in all situations. One who understands this will STOP changing parameters/strategies frequently, especially after a few losses. If one keeps hopping between strategies, chances of earning come down drastically. As long as your strategy has positive expectancy (more than 0), you are good in the game and chances of earning in long run are very HIGH. Drawdowns - What separates professional traders with beginners is the ability to handle drawdowns. During drawdowns, especially after losing 10%-15% of your capital, your psychology takes a hit and this is when professional traders keep continuing the journey and all others stop trading. Compounding - Compounding is the ultimate wealth creator but it's possible only when one has utmost patience. One who decides to have a long-term journey of 10-15 years will surely be rewarded by compounding, provided you have the right mindset to ignore short term jerks. Risk Management - Peace of mind is very important to keep our journey long and risk (and money) management plays a HUGE role in that. Having a good risk management system ensures that we are always in the game and helps in having a smooth equity curve. End of the day, it all comes down to your trading psychology. One who withstands during losses and drawdowns without worrying much will be rewarded in long term and all other will be eliminated from market, as simple as that.

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, analyze and then trade on FNOs.