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created : 1 month ago| |  live deployment: 9

created : 1 month ago |  live deployment: 9

DYNAMIC-Options

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Strategy description

This strategy is an "Options" version of our main strategy that trades in "Futures", which is listed at the following link:
https://tradetron.tech/strategy/277598

This version follows exact same Buy/Sell as on the main strategy. The only difference is that positions are taken in Weekly Options instead of Monthly Futures.  All other features remain the same as that of Futures Strategy. 


Dynamic indicator/system is a proprietary systematic method designed by DECIBEL CAPITAL (www.db.capital) to capture momentum on Indian Indices of NIFTY and BANKNIFTY. It aims to identify bullish / bearish patterns in a systematic manner and uses volatility adjusted entry levels and trailing points. The method employs a proprietary method to filter out market noise from an underlying trend to ensure whipsaws arising from a trend-following method are removed.


The current strategy works on the same DYNAMIC signal as the main FUTURES signal but trades on WEEKLY OPTIONS for Nifty and BankNifty. 


Performance

This has been running on Private deployment for about 2 months now. Below are the performance metrics as of 18-Feb-2021. For a detailed backtest based on Index, please refer to the base strategy link above. 



Risk & Multiplier

This strategy will buy at least 1 Lot of Nifty/BankNifty. It takes 3% risk on the deployed capital at 1x Multiple. 


For example: If Buy Call signal arrives, the strategy will calculate 3% of Capital to identify total number of lots it can buy. 

3% of 4,00,000 = 12,000 x (Multiplier=1) = 12,000. Let's say ATM Call on Nifty is for Rs 80(x75 = 6000 value), the strategy calculates the lots and can buy 2 Lots.  

In any case it will buy AT LEAST 
One Lot of the options. 


Compounding

  • This strategy will take into account the PNL generated on your deployment to automatically increase the number of lots traded. Please ensure the following: 

  1. Your Deployment Counter is always 1. If you perform a Manual Pause/Exit of the strategy, the Counter of the strategy will change too and the PNL calculation will reset. The compounding will only work on the latest and longest running Counter PNL. The only way to ensure that the strategy compounds itself based on PNL, is to try to avoid Manual Pauses and Exits of the strategy. In certain emergency situations such as Error Execution or other errors, it is inevitable to perform a manual update. You can also compound by increasing the multiplier. You can change the Multplier after gaining at least 55-60% PNL on your deployed capital. Consider resetting Multiplier to 1x at the end of an year(calendar year/fiscal year). 
  2. If you withdraw Profits from your trading account or add capital, please delete your current deployment and re-deploy the strategy with appropriate multiplier. That will reset the Counter of your deployment and thus the Capital to Base Capital, and start afresh with compounding. 

All LIVE Deployments will also receive the following benefits for FREE
  1. TradingView Indicator Access - NEVER guess whether your account is accurately following the strategy. You can be at peace knowing exactly what is the current position of the strategy and in case of execution errors, you can follow the indicator and execute manual trades. Just deploy the indicator on a free TradingView account and always stay aware of where the SL is. 
  2. LIVE Alerts - Telegram Channel - Invite Only Channel Access - Instant messages are sent on this channel whenever a trade is entered/exited. Can help in case of execution errors. 
Send us an email at info@db.capital after your LIVE deployment to avail these benefits. 
Low Correlation
  • Trend following has very low correlation with other strategies such as Vol Selling (Option Selling/Straddles/Strangles) and thus this strategy can provide good diversification to your portfolio that you might be running at TradeTron.. 

Fee
A monthly Fee of 250 helps us cover costs of operations. Performance Fee of 15% of new profits made is charged on a Quarterly basis. This strategy is designed to beat the markets over long run. You should deploy this strategy with at least 6-9 months of time frame in your mind. 

Statistics

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