Strategy description

Index Positional Monthly Strategy Overview

The Index Positional Monthly Strategy combines 3 indices—Nifty, BankNifty, and Sensex—into one strategy. Nifty and Sensex trades are weekly, while BankNifty trades are monthly. The strategy involves trading straddles and strangles, and in some cases, it holds naked positions to take advantage of directional moves. During the day, the strategy does not carry any hedge, but overnight positions are always supported with tight OTM hedges.

Key Features:

1. Start Time: 1st Monday of the monthly expiry
2. Exit Time: 2:30 PM on monthly Sensex expiry
3. Capital Requirement: ₹800,000/X
4. Target: Not applicable
5. Stop Loss: Not applicable
6. Trailing Stop Loss (TSL): Not applicable
7. Drawdown: Expected 6%
8. Average Trades: ~500 trades per month
9. Overnight Capital Usage: ₹250,000/X
10. Maximum Overnight Risk: ₹20,000/X
11. Shared Code: e6440f3a-9491-4399-b37f-c98fcbc28cdc

User Responsibilities

1. Capital Buffer: Users are encouraged to maintain an additional 5-10% of capital beyond the recommended amount, as capital requirements may increase, especially during high-volatility days. Generating a token between 8:30 AM and 9:00 AM usually ensures smooth execution.
2. Error Notifications: If a live deployment encounters an issue, users will receive notifications via WhatsApp or Tradetron. Please check the notification log to address any issues promptly. If you cannot resolve the issue, please contact us through our Telegram group or personal Telegram ID.

Algo Awareness for Users

Although the strategy logic remains consistent, outcomes may vary based on each user's entry strike and entry price. For example, one user entering at 300 and another at 305 may experience different adjustments and day-end results. Over time, these differences generally even out across users.

To manage costs effectively, users are encouraged to consider low-cost or zero-brokerage brokers. We also recommend selecting a reliable broker with stable API performance to minimize execution issues. Feel free to contact us for guidance on optimizing costs and selecting a broker.

Disclaimer

Market Star is not a SEBI-registered advisor. While this strategy is carefully designed based on observed market conditions, we do not guarantee specific ROI or results. Before deploying the strategy, please consult with a qualified investment advisor. Options trading involves substantial risk, and this strategy is best suited for individuals with a clear understanding of option selling and trading.