Strategy description

Strategy Name: Chemical Burn

Strategy Type: Intraday Option Selling for Nifty

Overview

The Chemical Burn Nifty strategy is designed for intraday option selling, specifically focused on Nifty. This strategy enters with paired short positions in options. It adapts to market conditions by exiting the underperforming leg if the market trends in one direction. In case of significant market reversal, the strategy re-establishes a paired position by exiting the open leg.

Key Strategy Details

1. Capital Required: ₹250,000
2. Entry Time: 9:20 AM to 9:40 AM (on Mondays and Fridays)
3. Exit Time: 3:10 PM
4. Approximate Drawdown: 4%
5. Dynamic Profit Booking: Yes
6. Average Trades per Month: 220 (approximately)
7. Maximum Stop Loss: ₹4,500 per day

User Guidelines

1. Capital Management: Maintain an additional 5-10% of the recommended capital to handle margin fluctuations, particularly on days with increased market volatility (e.g., rising VIX).
2. Token Generation: Ensure tokens are generated between 8:30 AM and 9:00 AM to avoid execution issues. If any deployment errors occur, notifications will be sent via WhatsApp or Tradetron. Act promptly to avoid any discrepancies.
3. Algorithm Awareness: Entry strikes and prices may vary slightly across users. These variations typically balance out over time, but users should understand and accept this variability in outcomes.
4. Broker Selection: To optimize the strategy’s performance, consider using a low-cost or zero-brokerage account. A reliable broker with minimal execution issues is crucial. For further guidance on selecting the right broker, feel free to reach out for feedback.

Disclaimer

The Chemical Burn strategy is not guaranteed to generate profits. We are not SEBI-registered investment advisors. All trading, especially options trading, carries substantial risks. This strategy should not be deployed based solely on past performance expectations. We strongly recommend consulting with a qualified financial advisor before using this strategy. Paper trading is advised to gain familiarity with the strategy before live trading.

Please note that the strategy’s effectiveness depends on market conditions, and individual outcomes may vary. Users should only trade with capital they can afford to risk, as losses may occur.