Strategy description

Important Note:
Shared code is not provided as a policy. Please refrain from requesting it.

Capital Requirement Update:
Once the Nifty lot size increases to 75, the capital requirement for this strategy will rise to ₹3,00,000. Please consider this adjustment before deploying the strategy.

Strategy Type:
This is a non-directional options selling strategy.

Trading Details:

• Trade Timing:
  Trades may begin soon after market opens but not necessarily at the start of the session. All trades are closed before 3:15 PM.

• Trade Frequency:
  The strategy typically limits to one trade per day, but additional trades may be taken depending on dynamic market conditions.

• Positions:
  Each trade involves two option selling positions (Call and Put) and two option buying positions (Call and Put).

  • Stop-loss (SL) is defined for option selling positions.
  • No SL is defined for option buying positions, as Out-of-the-Money (OTM) options are bought to optimize margin requirements.

• Market Conditions:
  In cases of a significant market reversal (a V-shaped movement with notable up and down shifts), SL may hit on both sides.

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Key Considerations:

• Position Sizing:
  Position sizing should be based not only on margin requirements but also on potential drawdowns. Adequate capital and risk tolerance are critical.

• Dynamic Market Behavior:
  Be prepared for varying outcomes, as the strategy dynamically responds to market conditions.

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Disclaimer:

This strategy is shared for informational purposes and does not constitute financial advice. We are not SEBI-registered advisors or licensed financial professionals. Deploying this algorithm for trading is entirely at your discretion, and you acknowledge the associated risks.

Trading in derivatives involves substantial risks, including potential losses due to strategy performance, technical glitches, or execution failures (platform errors, broker issues, etc.). We disclaim any responsibility for financial outcomes resulting from the use of this strategy.

While we strive for accuracy, no claims can be made against us for any losses incurred. Users should thoroughly evaluate the risks and exercise due diligence before deploying any trading strategy.