Strategy description

Index Positional Star Strategy

The Index Positional Star is an option-selling strategy designed for trading on expiry indices. For approximately 11 days each month, it trades on the index set to expire the following day. On other days, it trades on Nifty. The strategy initiates a new counter each day at 2:58 PM, selling a straddle and a strangle with tight out-of-the-money (OTM) hedges on expiry indices. For each short position, an equal number of tight OTM hedges are maintained overnight. All positions close at 2:48 PM. No overnight positions are held on Friday nights.

Strategy Details

• Capital Required: ₹2,50,000
• Stop Loss: ₹3,000 per multiplier
• Target: ₹4,000 per multiplier
• Trailing Stop Loss: Not applicable

User Responsibilities

• Capital Maintenance: Users are advised to maintain an additional 5-10% above the recommended capital to account for potential capital increases by the exchange on high-volatility days (e.g., rising VIX days). Proper capital maintenance and generating a token between 8:30 AM and 9 AM help ensure smooth execution in most cases.

• Error Management: In the event of a deployment error, users will receive notifications via WhatsApp or Tradetron. Check the notification log to identify and resolve any issues as soon as possible. If the strategy encounters an error, it may stop working, which could affect results. For assistance, users can contact support through the provided Telegram group.

Algo Awareness for Users

In Tradetron, while the strategy logic is the same for all users, individual entry strikes and prices may vary. For example, if one user enters a position at 300 and another at 305, their adjustments and outcomes for the day may differ. Over time, however, these differences generally even out across users.

Due to recent changes in returns, users are encouraged to consider low-cost or zero-brokerage brokers. We can offer feedback on brokerage options to optimize costs. Additionally, users should select brokers with reliable APIs to minimize execution issues.

Disclaimer

Market Star is not a SEBI-registered advisor, and no claims are made regarding specific returns. We recommend consulting a financial advisor before deploying this strategy. Option trading is inherently high-risk, and this strategy is intended for individuals with a full understanding of option selling/trading.