Strategy description

Live Shared Code: 37f9746e-e994-4101-ab81-1068eef98033

Important Note

F&O trading carries substantial risk. It is not a guaranteed income source, and one should not depend on trading as a primary income or take loans for trading purposes.

Strategy Description

• Type: BFO Intraday Algo in Sensex Index Options using Market Order Execution and NRML Orders
• Trade Frequency: 1-2 trades per day on average (buy + sell); there may be days with no trades depending on market conditions
• Capital Requirement: ₹1.5 lakhs, as this is an unhedged, single-leg option-selling strategy (either CE or PE). Occasionally, it may take both CE and PE positions in pairs.
• Dynamic Entry: Entry can occur anytime conditions are met, with entry cutoff at 2:01 PM. Some days, the strategy may not take any trade.
• Single Counter: After exiting, the algorithm typically reactivates after 6 hours.
• Optimal Market Conditions: Works best in directional markets.
• Note on Logic: The algo may buy 1 share of IDEA in the morning as part of the logic.
• PnL Variability: Results may vary across live accounts due to market conditions, BID-ASK spreads, and other factors. It’s advised to observe the algorithm’s performance over a longer term, ideally 4 months, before assessing satisfaction with the results.
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Capital Management Guidelines

• Capital Reserve: Users are advised to maintain an additional 5-10% above the recommended capital to manage potential capital requirements, especially during high-volatility periods (e.g., rising VIX).
• Token Generation: Ensure tokens are generated between 8:50 AM and 9:13 AM to minimize execution issues, which are rare but may occur in approximately 5% of cases.
• Error Management: In case of deployment errors, users will receive notifications via WhatsApp or a call from Tradetron. It’s essential to check the notification log in the deployment interface to address issues promptly, as unresolved errors may halt the strategy. If additional support is required, assistance is available through the Telegram discussion group.
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Algo Strategy Awareness

Premium-based algorithms, independent of specific trading signals, may exhibit variations in P&L across users 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, influencing stop-loss (SL) and take-profit (TG) levels, which may differ across accounts. While one user may book a profit on a trade, another may not, especially if the market reverses. It’s advised to observe performance via the live shared code or paper trading, without comparing results across users. Over time, these variations generally balance out, leading to similar results.

Disclaimer

Sachin Jain Algos offers a well-designed and tested strategy; however, please note that I am not a SEBI-registered advisor. This strategy should not be expected to yield specific returns, and it is strongly recommended that users consult their financial advisor before deploying it live. Option trading carries inherent risk, and this strategy is suited only for those who understand and accept these risks.

Contact Information

• Email: [email protected]