Strategy description

Live Shared Code: 5b716441-7b65-426b-b614-dd20ec6f195d

Important Note

F&O trading carries substantial risk. It should not be considered a primary income source, nor should funds be borrowed for trading purposes.

Strategy Description

• Type: BFO Intraday Algo in Sensex Index Options (Weekly Expiry Options – Intraday Only)
• Positioning: ATM Short Straddle with adjustments that may lead to unpaired positions
• Capital Requirement: Approximately ₹1.2 lakhs due to unhedged option selling (naked short straddle)
• Trade Structure: Single-counter algo with fixed stop-loss (SL) and undefined target
• Entry Timing: Dynamic entry anytime after 9:23 AM; at times, it may show “Live-Entered” with 0 running positions, which is expected behavior
• Universal Exit: 3:12 PM, after which the algo typically reactivates after 6 hours
• Average Trades per Day: 7 trades per day (buy + sell)
• Market Conditions: Designed for non-directional and semi-directional market environments
• Order Execution: MIS and market orders only
• Brokerage: Recommended to use 0-commission brokers
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Important Capital Management Guidelines

• Capital Reserve: Users are advised to maintain an additional 5-10% above the recommended capital to accommodate potential fluctuations, especially during increased VIX periods.
• Token Generation: Ensure tokens are generated between 8:50 AM and 9:13 AM to reduce the likelihood of execution issues, which are rare (about 5% of cases).
• Error Management: If deployment errors occur, users will be notified via WhatsApp or a call from Tradetron. Reviewing the notification log in the deployment interface and addressing issues promptly is essential, as unresolved errors may halt the strategy. Assistance is available through the Telegram discussion group if needed.
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Algo Strategy Awareness

Premium-based algorithms, which do not rely on specific trading signals, may show variations in P&L across users due to differences in entry premiums. This is due to BID-ASK availability in Market Depth, impacting SL and TG levels. As a result, one user may book a profit while another does not, particularly in case of market reversals. It is recommended to monitor performance via the live shared code or engage in paper trades rather than comparing results across accounts. Over time, these variations generally balance out, leading to similar results.

Disclaimer

Sachin Jain Algos provides a carefully designed and tested strategy; however, please note that I am not a SEBI-registered advisor. This strategy should be used only after consulting a financial advisor. Option trading carries inherent risk, and this strategy is suitable only for those who fully understand these risks.

Contact Information

• Email: [email protected]