Strategy description

GANDEEVAMU SFT4.0: NIFTY50 Weekly & BANKNIFTY Monthly Options Buying BTST Strategy

Developed by Sravya Financial Technologies

"GANDEEVAMU SFT4.0" is a proprietary Buy-today-Sell-Tomorrow (BTST) strategy leveraging NIFTY50 Weekly and BANKNIFTY Monthly options contracts. Success in options buying hinges on precise entries, timely exits, and disciplined risk and money management.

Key Features:

1. Trading Instruments: NIFTY50 Weekly and BANKNIFTY Monthly options contracts.
2. Entry & Exit Timing: Entries after 3:20 PM IST; exits by 3:00 PM IST the next trading day.
3. Trade Structure: Buy 1 lot each of NIFTY50 and BANKNIFTY options.
4. Strike Selection: Targets strike with the Last Traded Price (LTP) near ₹200 for NIFTY50 and ₹300 for BANKNIFTY.
5. Capital Requirement: ₹50,000 minimum margin (including buffer) for 1x deployment.
6. Risk & Reward: Maximum Loss: ₹10,000 (20% of required margin). Maximum Profit: ₹12,500 (25% of required margin).
7. Market Suitability: Thrives in trending markets; ideal for capturing overnight momentum.
8. Ease of Use: Minimal trader oversight is needed; the strategy automates market monitoring.
9. Live Trading Recommendation: Conduct live paper trading for at least one month before deploying real capital.

Why This Strategy Works:

1. Momentum-Driven Entries: Combines instant trend detection, momentum indicators, and price action for optimal BTST timing.
2. Defined Risk-Reward: Caps losses at ₹10,000 while targeting ₹12,500 in profits per cycle.
3. Low Entry Barrier: Requires just ₹50,000, making it accessible yet potent for high returns.

Unplanned options trades often lead to losses. This BTST strategy provides a structured approach to harness overnight price movements in trending markets.

Risk Management & Position Sizing:

1. Risk Management: Prioritizes capital preservation by limiting losses
2. Position Sizing:
   1. ₹50,000 = 1x position (minimum margin with buffer).
   2. ₹1,00,000 = 2x position.
   3. ₹1,50,000 = 3x position.
   4. Larger positions require corresponding account size increases to maintain risk parameters.

Profit-Sharing & Fee Structure:

1. Fees: Fixed monthly fee of ₹100 (plus GST). 20% profit share for each profitable month, based on TradeTron platform records.
2. Invoicing: Issued on the 1st of the following month; payment due by the 3rd.
3. Non-payment: Non-payment by the 3rd suspends the strategy until cleared.
4. Profit-Sharing Examples:
   1. Profit of ₹10,000 = ₹2,000 (20%) payable + ₹100 fee.
   2. Loss of ₹5,000 in Month 1, then ₹10,000 profit in Month 2 = ₹1,000 payable (₹10,000 - ₹5,000 loss carryforward = ₹5,000 x 20%) + ₹100 fee.
   3. Losses incur only the ₹100 fee and are carried forward to offset future profits.

Broker Selection:

BTST trading benefits from low-cost brokers. To maximize returns, opt for platforms offering zero or minimal brokerage fees, as frequent trades can erode profits with high commissions.

Disclaimer:

1. Regulatory Note: Sravya Financial Technologies is not a SEBI-registered advisor. Use this strategy at your own risk.
2. No Guarantees: Past performance does not ensure future results; profits or losses are not assured.
3. Recommendation: Consult a registered financial planner and complete at least one month of live paper trading before going live.