Strategy description

About the Strategy:

This is an amazing strategy which shorts 2 bank nifty straddles daily after buying hedges, and performs adjustments in such a way that positions remains diversified to reduce the risk. The strategy also takes some trades in equity stocks to further diversify the risk based on law of averaging, after undergoing a rigorous stock selection process that helps in improving the accuracy of the trades selected.

It is purely an intraday strategy to avoid overnight risk of selling options.

Some Details:

Entry Time                        :   9:16 for hedges. 9:17 and 9:30 for straddle. And for equity trades varies based on signal generation

Exit time                           :    15:07

Inbuilt Hedges                 :      Yes

Broker Requirement:

As the capital is split into multiple small trades, using a zero brokerage broker, or a fixed monthly brokerage plan brokers works best with this strategy. Also the brokers that charges brokerage in % of traded amount also works but the rate of brokerage should be low. Strictly avoid brokers that charges few rupees per order type of brokerage. As our aim is to take advantage of averaging and not to make brokers rich.

Deviation from deployment to deployment:  Due to multiple moving parts in this strategy, this strategy is very likely to give different PNL for different deployments and its perfectly alright. The strategy has numerous edges and that will help you in long term. So stay relaxed and follow patience in case of deviations between 2 deployments.

Do's and Don'ts:

1) Make sure that your account has sufficient Balance for the multiplier that you deploy as per the capital requirement mentioned. Failing which the Strategy will go into Error Execution state and Tradetron will pause condition checking for your deployment.

2) Avoid starting this strategy during mid of the Market. In order to have a proper Hedging its best to start this strategy before market opens.

3) If your deployment is interrupted due to any reason like, paused the Strategy on any day or the strategy went into Error Execution on any day, make sure that the Strategy Status goes through exited status to properly reset the counter and reset the variables used in the strategy and fresh day starts with fresh variables.

Risk Disclaimer:

We are not SEBI registered analyst. Neither the Strategy Creator nor Trade-Tron is responsible for any loss to you by deploying this strategy. Please consult your Financial Advisor before Trading in Stock/Options Market. Do not deploy any emergency funds or take any over exposure that may impact you if things go wrong. Also note that Automated Trading is not unsupervised trading, you are expected to keep an eye on the trading as any technology can sometimes have limitations/errors/downtime, etc.