Strategy description

Live Shared Code (Verify actual trades punched in broker & PnL - LIVE AUTO)

32af4f65-1235-4377-aa80-00807c4bd451

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Important note - F&O Trading is the worst business in this world. If you expect more than 10-14% yearly returns from trading, then you are either misguided or delusional! People commit suicide every month, and 99% of traders lose money. The 1% of people who make money earn around less than 14% yearly returns. So don't ever borrow money or take loans. One must NOT depend on Trading for source of income or consider it as a Money Making Machine! 

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Strategy Description: 

• It is a MCX CrudeOil Options Selling/Writing Intraday Algo

• Requires approx 5.5 Lakhs capital for 1x LIVE AUTO deployment

• Shorts Nearest OTM strikes (Call & Put options both in a pair) (which is nearest to ATM strikes)

• It is Unhedged - Option Selling/Writing, hence Capital Requirement is as such

• Takes Intraday but NRML orders

• Takes entry only After 3:30 PM - After NSE Markets closes, so as to re-use the NFO/NSE Capital again here

• It Takes Multi-Counters in a day

• Algo reactivates after 30 mins after Universal Exit (Counter Change)

• Final Exit timing is 23:17 PM

• There is 10% Tranching Size with 10 Seconds Delay for each lot Entry or Squaring off or exit. 10% Tranch Size means, if you deploy 50x, then each order of (10% of 50 lots) will be sent separately in a gap of 10 seconds. This is done to protect from -ve slippages due to limited availability of BID-ASK Quantities and orders in Market Depth/order book. At a instance there is only so much orders available in Market depth to trade from, hence time-based straddles is the only solution.

• It takes almost 5 to 6 Trades/Day. (1 trade = buy+sell)

• This algo works best in Non-Directional markets

• It takes NRML and Limit Orders only (No Market Orders and No MIS Orders)

• Doesn't Trade on Options Expiry Day of Crudeoil Contracts. Please note - MCX has different tender period (Expiry Dates) for both Options contracts and Futures Contracts. So on the day of Options Expiry of Crudeoil, it will not trade or any entry. But it will trade even 1 day before the expiry day, so your broker might throw "Errors" during Tender Period of options (which is usually 3-4 days), in such cases, you can either ignore the error or pause the algo during tender period when your broker blocks the trades

• Please use 0 commission brokers which charge you 0 Rs/Order

Crucial Information:

Capital Management Guidelines: Traders are urged to maintain a reserve of 5 to 10% more capital than the broker's recommended amount and to manage capital fluctuations triggered by the exchange during periods of increasing VIX. Once capital is appropriately maintained and a token is generated between 8:50 AM to 9:013 AM, execution issues are rare, occurring in only 5% of cases. However, in the event of any live deployment errors, users will receive notifications via WhatsApp or a call from Tradetron. It is essential to review the notification log in the deployment interface to identify and rectify the issue promptly. Errors in deployment halt the strategy, potentially leading to unforeseen outcomes. If unable to resolve the error independently, users are encouraged to seek assistance through the discussion group on Telegram.  

Algo Strategy Awareness & Why your PnL might Differ compared to your friend: Premium-Based algorithms, which do not rely on signals from trading view or any indicator, will invariably exhibit differences in PnL among users. This discrepancy hinges on the entry premium captured by your Broker/Tradetron execution account during the morning entry time. Some individuals may receive an entry premium of 200, while others might receive 203, owing to the availability of BID-ASK in Market Depth. Consequently, all conditions and Stop Loss (SL) / Take Profit (TG) levels are calculated based on these respective entry premiums, resulting in varying SL and TG levels for each user. Your average entry price will consistently differ compared to other users' live auto deployments, contingent upon the Last Traded Price (LTP) captured from the Market Order Book depth, derived from Bid & Ask Prices. This average entry price significantly influences the fixed-defined SL and TG percentage. Consequently, while some users may book profits on a leg, others may not, particularly when the market reverses (even with the formation of a single red or green candle). Therefore, it is advisable to monitor live shared code or engage in Paper Trades, but refrain from comparing results with others. Over the long term, these disparities typically balance out, resulting in largely matching PNLs for all users.   

Disclaimer: While Sachin Jain Algos offers a meticulously crafted and time-tested strategy aimed at profitability, it's imperative to note that I am not a SEBI registered advisor. While the strategy is designed with care, I do not assert any claims regarding attractive ROI. Prior to deploying this strategy in live trading, it is strongly advised to consult with your investment advisor. It's crucial to acknowledge that option trading carries a 100% risk  

Contact Information

Email: [email protected]

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