Strategy description

Entry Conditions

• The strategy enters trades after 9:30 AM once specific conditions are met. Entry is based on strategy signals, not specific timing.
• Positional trades are typically initiated on Fridays.

Live Shared Code: c8c98e00-aa25-4f18-8a3b-c6377a52016f

Strategy Overview

This strategy employs a mix of option-selling techniques, including:

1. Straddle or Strangle: Used for non-directional positions.
2. Directional Trades: Engages in directional trades based on market conditions.
3. Credit Spreads: Call or put credit spreads for controlled risk exposure.
4. Debit Spreads: Call or put debit spreads for selected directional exposure.

The strategy primarily takes trades in Bank Nifty and Nifty but may also trade other indices if a favorable setup is identified. Up to 10% of the capital may be allocated to option buying with a selling hedge when necessary.

• Max Loss Limit: ₹2,300 (approximately 1.5% of deployed capital)
• Capital Allocation:
  • 50% of capital is used for positional trades, each fully hedged.
  • Decisions are based on:
    • Data analysis
    • Volume tracking
    • Technical indicators
    • Price action
    • Support and resistance levels
    • 
      

Additional Considerations

Market Participant Activity: The strategy observes activity from large market participants, particularly whether they are accumulating or distributing assets, as part of its decision-making process.

Index Strength Analysis: The strategy evaluates various indices to identify strength and weakness, focusing on indexes showing the clearest trends.

Capital Maintenance

• Expected Drawdown: 9%
• Additional Capital: Users are advised to maintain 15% more than the recommended capital to accommodate fluctuations.

Error Handling

If an error occurs during live deployment, users will receive a notification via WhatsApp or a call from Tradetron. Check the notification log to identify and resolve any issues promptly.

Disclaimer

Mallikarjun Reddy is not a SEBI-registered advisor. While this strategy is based on extensive testing, no claims are made regarding specific ROI. Please consult a financial advisor before deploying this strategy live. Option trading involves significant risk and is suitable only for those with a comprehensive understanding of option buying and selling.