Strategy description

Strategy Description:

Pulaaha – A Positional Nifty Options Strategy

Overview

Pulaaha is a systematic positional options strategy designed for the Nifty50 index, built on a modified Iron Condor framework. The strategy combines ATM or OTM short options with further OTM long hedges, ensuring a defined-risk structure with stable returns. It follows a disciplined rule-based approach to balance theta decay and volatility control.

Key Elements

Entry Timing

1. Initiation: Positions are entered after the weekly expiry, typically on the following Wednesday at 09:30 hours.
2. Holiday Adjustment: If Wednesday is a trading holiday, initiation shifts to the next available trading day at the same time.

Exit Timing

1. Exit: All open positions are exited before the upcoming weekly expiry, ensuring no carry-forward exposure to the next cycle.

Strategy Framework

Short Legs:

1. One ATM or slightly OTM short call.
2. One ATM or slightly OTM short put.

Long Legs (Hedges):

1. One further OTM long call to hedge the short call.
2. One further OTM long put to hedge the short put.

This structure creates a risk-defined Iron Condor–style setup, effective in both trending and range-bound market conditions.

Capital Requirements

1. Recommended Capital: ₹1,50,000
2. Buffer Margin: Additional 20% suggested to accommodate operational variations.

Pricing

1. Upfront Fee: None
2. Performance Fee: 10% of Monthly Gross Profit (as per Tradetron report).
3. Aggregation: Combined profits across all Saptharishi Algo strategies determine the total performance fee.

Subscriber Recommendations

1. Begin with paper trading for at least one month to understand live behavior and execution flow.
2. Ensure API setup, margins, and broker integration are configured correctly on Tradetron.

Contact Information

Disclaimer

1. Saptharishi Algo provides algorithmic trading models for educational purposes and does not offer financial or investment advice.
2. We are not SEBI-registered advisors.
3. Trading involves significant market risk.
4. Past performance is not indicative of future results.
5. Users must evaluate suitability and risk appetite independently.
6. Saptharishi Algo assumes no responsibility for any losses, operational issues, or financial outcomes.

User Acknowledgment

By using this strategy, users acknowledge that:

1. All trading decisions are made independently.
2. The strategy should align with their financial goals and comfort levels.
3. Caution, discipline, and risk management are essential.

For more information, contact Saptharishi Algo.

All communication is for informational purposes only and not to be construed as financial advice.

Capt. Velayudhan C P

“Saptharishi Algo”