Strategy description

Live Shared Code: df9a9185-eb84-4a0f-9520-ca8582d4ebd2

Important Note

F&O trading involves substantial risk. If you expect returns exceeding 10-14% per year from trading, you may have unrealistic expectations. Trading should never be considered a primary income source or a money-making tool, and borrowing money or taking loans for trading is strongly discouraged.

Strategy Description

• Type: MCX CrudeOil Options Selling/Writing (Intraday)
• Capital Requirement: Approx. ₹5.5 lakhs for 1x LIVE AUTO deployment
• Positioning: Shorting nearest OTM strikes (both call and put options in pairs), unhedged
• Order Type: Intraday but uses NRML orders
• Entry Timing: After 3:30 PM, following NSE market closure, allowing NFO/NSE capital reuse
• Multi-Counter Trading: Takes multiple counters in a day; reactivates after 30 minutes following Universal Exit
• Final Exit Time: 11:13 PM
• Order Management: 10% tranching size with a 10-second delay per lot for entry, exit, and squaring off. For example, if deploying 50x, orders are staggered in 10% lots every 10 seconds to help manage slippage.
• Frequency: Takes approximately 5 to 6 trades per day (1 trade = buy + sell)
• Market Conditions: Works best in non-directional markets
• Order Type: NRML and limit orders only (No market or MIS orders)
• Expiry Management: No trades are executed on crude oil options expiry day. Note that MCX has separate expiry dates for options and futures contracts, and brokers may block trades during the tender period (3-4 days before options expiry).
• 
  

Important Capital Management Guidelines

Traders are advised to maintain a reserve of 5-10% above the recommended capital to manage potential capital fluctuations during periods of increased VIX. Once capital is adequately allocated and a token is generated between 8:50 AM and 9:13 AM, execution issues are rare (approximately 5% of cases). If errors in live deployment occur, users will receive notifications via WhatsApp or a call from Tradetron. Review the notification log in the deployment interface to address any issues promptly. Unresolved errors may halt the strategy, potentially impacting results. If further support is needed, assistance is available through the Telegram discussion group.

Algo Strategy Awareness

Premium-based algorithms, which do not rely on specific trading signals or indicators, can show variations in P&L across users. This is due to differences in entry premiums captured by the broker or execution platform. Entry premiums vary based on BID-ASK availability in the Market Depth, leading to minor discrepancies in Stop Loss (SL) and Take Profit (TG) levels across accounts. Thus, while one user may book a profit on a trade, another may not, especially if the market reverses. It’s advised to follow the live shared code or paper trade to monitor performance without comparing results across users. Over time, these variations generally balance out.

Disclaimer

Sachin Jain Algos offers a carefully crafted and extensively tested strategy, but it is important to note that I am not a SEBI-registered advisor. I make no claims regarding specific ROI or attractive returns. Before deploying this strategy live, consult with your investment advisor. Option trading involves substantial risk, and this strategy should be used only by those with a comprehensive understanding of such risks.

Contact Information

• Email: [email protected]