created : 1 year ago| | live deployment: 112
Strategy description
This is a positional option buying strategy which buys monthly ITM options in Nifty based on the trend using basic trend following indicators. Don't ask me what? it is so simple yet effective.
Capital Required: 50k. Actual margin required would be around 35k and 15k is buffer capital for managing losses if any. Historical DD is not considered in the capital mentioned.
Entry/Exit time: There is no defined entry or exit time. It works based on signals and takes long or short position any time.
Target: Open target - finding trend is tough and if it is found, why settle for a fixed profit? Ride the trend as long as it goes.
Stop Loss: Rs.10,000 per counter is hard stop loss (it could be from one position or multiple positions in same counter)
Trailing Stop Loss: 5k is the minimum threshold. Once MTM PNL reaches 5k at counter level (not individual strikes), TSL starts at 0. For every Rs.1000 increase in profit, TSL trails by Rs.1000. Eg., if your PNL is 5k, SL will be 0. If PNL is 8500, SL will be 3000 and so on...
FAQs:
1. Can I deploy any time or is there any suggested time?
Ans: Yes, the algo can be deployed any time. It takes the trade when signal is generated. During last week of the month, Theta decay is severe and works against option buying but if the trend is strong, it overcomes the theta decay as well.
2. Can I increase or decrease multiplier when the trade is active?
Ans: By the design of the algo, increase or decrease of multiplier does not impact the positions or sq. off of positions. It is not advisable to increase or decrease the multipliers incosistently. We see that such changes results in lower profit or higher loss as people increase multipliers after profitable entry and next entry may be a loss or vice versa.
3. I have exited manually, how to re-enter?
Ans: New entry cannot be made again until the trend reverses and new signal is generated. You can refer the active strikes in paper trade to verify if the direction matches or not.
4. Is it monthly options or weekly options? Are there slippages?
Ans: This algo deals with monthly expiry options with an idea that the theta decay is slower than weekly options. Since it deals with ITM options, slippages are inevitable however the algo picks strikes which are in '00s and avoids '50s. Hence the slippages are slightly negligible.
Theta is an enemy but as long as trend is captured, it overcomes theta effect. Though 1 lot of option buy would not be more than Rs.35,000, I recommend to have a capital of Rs.50,000 to play with this strategy as the drawdown could be severe. 4-5 loss trades will easily be compensated with one trend which will make it profitable.
Test with paper trade and then go-live if it is interesting.
Although the algo takes care of the entry, exit, adjustments, you are advised to keep an eye over the account to watch for any errors which could be due to margin shortage or technical issue etc.
Disclaimer: I am not SEBI registered advisor or Portfolio Manager. I do not take responsibility for any losses that might occur as a result of deploying this strategy nor do I guarantee any returns. If you are not aware of risks associated with FNO trading, you are strongly recommended to understand, analyse and then trade on FNOs.
Join my telegram channel - click here
Subscribers
Statistics
satyabrata sethi 1 day ago
Looks good strategy Professor. I like most of your strategies. Can you please tell which broker is suggested to use. Because when I see there are lots of trades it takes most of the amount it will go in brokerage. So is there any broker which will suit for your strategies. Need an answer. Kindly help
Nishal Vaishnav 6 days ago
crap strategy by crap person Kevin. almost 80% of the capital wiped out in just a week. i think he's fooling people by using moving averages. humble advice to not use any of the strategy of this person also requested to tradetron also to report this person. Tradetron will take action against such persons.
lrpm 1 week ago
Stick to your strategy definitely your dd will recover soon
SANKAR 1 week ago
very poor ,, very bad ,,, always loss
Surendra bhaskar 1 week ago
This strategy was in profit last month but slipped into losses this month but I have no issue with that because when you trade in options you need to factor in the risk associated but the issue is you are showing profits in strategy statistics where there is huge loss in actual deployment. little discrepancy can be understood but it is quite huge. I'm sure you must have some explanation to this, I would like to hear your side.
Abid Ali 2 weeks ago
Awesome Strategy. I am happy with this strategy.
Ranjan Jana 2 weeks ago
fake Strategy...... paper trading and live auto different P/L is showing, and i tried to contract creator during live auto, i did not get any support and response....loss is part of game i know but think is tradetron showing 4600 loss but broker terminal is showing 14,000 loss, it is too bad , so only equity curve is showing very good
Dezee Jain 2 weeks ago
I see that many ratings, are actually clarifications/queries asked. Tradetron system doesn't allow asking questions without giving a star (I also tried one, I was forced to give start rating even on asking questions, arbitrarily I gave 3 stars without actually meaning to give any stars), most of the reviews/ratings are actually misleading. What shows as 4 starts, if you go down the review section, you would notice that most of it is flooded with queries/questions/clarifications with high star ratings. As such, algo reviews and stars are totally unreliable. Maybe this is a system shortcoming, which algo-creaters are playing to their advantage by getting people to just ask questions with 5 star ratings, thereby improving their overall star ratings. I suggest that stars be limited strictly to "real reviews" and should be moderated by Tradetron team, rather than being allowed to be posted and replied to by all and sundry. For asking questions, you should introduce another tab/option which shouldn't require any stars to be given. Even for this comment, I am forced to give a star (I chose 1, apologies, its worst, but it should force the strategy runners to actually talk to tradetron and get this shortcoming removed, a 5 start would encourage them to leave it unattended)
Harish M. 2 weeks ago
5 continuous losing day for me, even slippages are too high which i think not considering in ROI shown here. basically strategy made from moving averages. nothing more than that. whenever moving average crossover happens it buys monthly ITM which end up in loss in rangebound market. i think the developer of the strategy is fooling people in the name of momentum strategy. humble request to not subscribe this strategy if you don't want to loose your hard earned money.
Balram 1 month ago
I found this strategy as one of the best strategy for option buyer with limited capital, option buyer usually dont make money in long run due to greed and missing out big trend, however this strategy solves all the psychological issues and ride the trend whenever it finds.
GAURAV YADAV 1 month ago
One star only because negative star is not possible
Manoj Kamble 1 month ago
I am using the strategy from 1st Feb and it is preforming great. The best part of the strategy is taking very minimum trades, one win will recover all trade losses. It is trend following strategy when it catch the trend correctly there is big win.
The Option Guru 1 month ago
Its a good directional strategy, but takes positions in non directional market too leading to intermediate drawdowns... Leaving out the fifth star, there can be conditions checked to avoid positions in non directional markets . Over all works great in long run, but if non directional entries can be avoided, the drawdown will also reduce significantly. The trade off will be that it might get a late entry, but probability of profit increases greatly if it only trades in a trending market.
babu roy 1 month ago
why position not taking after 28 March after 3 consecutive loss...I m new in the STG ...got 3 series loss ...anyway that is not any judgement.....so giving neutral ratig for now... BNF V2 is *****
KOMAL 2 months ago
Yo! Option Buyer! -N has not taken any entry since 21.03.22. Please check everything is fine from your end.
Rikesh kumar 2 months ago
good
HARSHADKUMAR PATEL 2 months ago
we cant join u telegram channel link is not working ????
ashwani 2 months ago
sir your strategy looking good, i didn't did algo trade before. can u clear me on that, when sl hit or target hit, i have to book or, it will automatically book. please tell me and how can i contact u.
Sanjeev Bhatt 3 months ago
Very Good Wealth Creating Strategy with Low Capital Requirement.
VIHAR VASOYA 3 months ago
this strategy was intraday or positional...???
nagamani 3 months ago
hi my self i deployed live trade 27-jan-2022 till 10-2-feb-2022 yesteday my loss Rs.18075 but no option position .yesterday but ur algo paper trade have open position but my account exit 10 k 8-feb-2022 how to connect with u pls explain how to active ur open position ?
Vinayaka Hegde 3 months ago
Sir, I am seeing a significant Difference between Paper trading & Live Trade, Paper trade shows Exited for PE 18000 & but in Live it is not exited & the status is still Live Entered, is there any issue today..? Whether we need to manually exit...?
JITENDER KUMAR 3 months ago
Sir, How to calculate P/L from trading history . in fact, in trading history , only entry price is mentioned.. Further, is it intraday or positional.
Mukesh Kumar Bhalla 4 months ago
Sir, My page in your strategy has not taken any orders today. why? All is well? it is ok from my side.
Amit Gupta 4 months ago
It working very nice! It is in decent profit, please let me know when it will exit, it took trade yesterday only Thank you Sir
Kalpna 4 months ago
seems little slow in profit booking and little fast in book loss. but over all its a good strategy.
LEENA AMIT KADAM 5 months ago
% Stop loss is not mentioned . If we do not the stop loss then how we can manually exit in case of errors.
Mithun Tarafder 6 months ago
Can you send me your number or email id
vellayan v 6 months ago
Excellent strategy, makes consistent profit.