Strategy description

This is a positional Bank Nifty weekly option selling strategy.  It is a non-directional strategy involving selling OTM weekly options with appropriate hedge. In the base trade, it sells 2 pairs of OTM strangles of next week from Monday to Monday.

It manages market direction and volatility based on pre-defined rules by:

1. Selling additional puts or calls to manage intraday market volatility;

2. Shifting base trade puts or calls and hedges based on decay and opposite side movement.

3. Buyingmonthly hedges to manage overnight gap up /gap down risk based on market conditions.

Capital: Rs. 1,40,000 per set

Minimum suggested deployment: 4x

Entry time: 12 to 2 pm (Monday to  Monday)

Exit and reentry: 12 to 2 pm (Monday to  Monday)

Number of trades per day: 40 (Approx)

Shared code: 5a6502ed-c62a-4d14-a965-a89f69098743

User's responsibilty : Users are requested to keep 10% of their deployed capital in cash for buying monthly hedges. If there is any error on your live deployment, you will get notification via whatsapp or get call from Tradetron. Please check notification log in the deployment to understand the issue and fix it as soon as possible. Once deployment will be in error, strategy stops working which can result in unexpected results.

User's Algo Awareness : In tradetron, though the strategy logic is same for all, the strategy logics depends on entry strike and entry price of the user. For example if one user enters the position at 100 and if another user enters the position at 105, for both of them, the adjustments may differ and hence the day end result may differ too. Users should understand the fact and accept the end result. In long run mostly it evens out and all users PNL mostly matches.

Users should also understand the costs involved in terms of brokerage and other transaction charges which varies based on the quantum of trades taken by the algorithm.

Disclaimer : Trading is inherently risky and the subscribers should bear complete responsibility for the outcome of trading and decisions you make including loss of capital. We are not a SEBI registered advisor / creator. The logic of this strategy is tested over time but there is no guarantee of profits. It is also possible that there are technical glitches beyond our control due to which the strategy may stop taking trades.  Option trading is a high risk and highly volatile by nature and it is not recommended for anyone who does not have good understanding of derivative instruments.  Please contact your investment advisor before deploying the strategy.