Strategy description

Hybrid Index Strategy

The Hybrid Index Strategy combines multiple BankNifty and Nifty strategies to address a range of market conditions with a focus on managing drawdown. It uses a blend of 8 different semi-directional, non-directional, and directional strategies, primarily through out-of-the-money (OTM) or strangle positions. The strategy operates with one counter per day, starting a new counter at 2:58 PM and closing at 2:48 PM the following trading day. On BankNifty’s weekly expiry day, the strategy does not carry any overnight positions. All overnight shorts are protected with tight OTM hedges to help manage risk.

Strategy Details

• Start Time: 2:58 PM
• Exit Time: 2:48 PM (next trading day)
• Capital Requirement: ₹5,30,000 per multiplier (X)
• Target: ₹7,000 per multiplier (X)
• Stop Loss: ₹4,500 per multiplier (X)
• Trailing Stop Loss (TSL): ₹3,000 per multiplier (X)
• Expected Drawdown: 4%
• Average Trades: Approximately 450 per month
• Overnight Capital Usage: ₹80,000 per multiplier (X)
• Maximum Overnight Risk: ₹10,000 per multiplier (X)
• Maximum Open Positions: 6 at any given time
• Shared Code: fc68add1-225d-416b-8c2d-281bff09d50a
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User Responsibilities

• Capital Buffer: Users are advised to maintain an additional 5-10% of capital beyond the recommended amount to accommodate potential capital requirements, especially during high-volatility days (e.g., rising VIX days). Proper capital maintenance and generating a token between 8:30 AM and 9:00 AM generally ensure smooth execution.

• Error Management: In case of deployment errors, users will receive notifications via WhatsApp or a call from Tradetron. Check the notification log in the deployment for details and resolve any issues promptly. If assistance is needed, support is available via the provided Telegram group.

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Algo Awareness for Users

In Tradetron, although the strategy logic is consistent, individual outcomes may vary based on entry strike and price. For instance, if one user enters a position at 300 and another at 305, their adjustments and results for the day may differ. Over time, these differences typically even out across users.

To optimize net returns, users may consider low-cost or zero-brokerage brokers. For guidance on selecting a broker or managing brokerage costs, feel free to reach out. It’s also advisable to choose brokers with reliable APIs to reduce execution issues.

Disclaimer

Market Star is not a SEBI-registered advisor. While this strategy has been tested extensively, we do not make any claims regarding specific returns. Please consult with a financial advisor before deploying this strategy live. Option trading carries significant risk, and this strategy is intended only for individuals with a thorough understanding of option selling and trading.