Strategy description

Strategy Description:

BankNifty Trapping is an intraday option buying strategy designed to take trades based on market direction. If the market is bullish, it will take a short position on the Put Option (PE), and if the market is bearish, it will short the Call Option (CE). As a positional strategy, it includes a hedge with each short trade by buying an Out-of-the-Money (OTM) option for margin benefits and overnight protection. The strategy’s entry and exit points are based on market signals, not fixed timings. The strike selection for both the short and buy legs is based on the Last Traded Price (LTP). The strategy uses a fixed percentage for stop loss and target to manage risk effectively.

Details:

1. Minimum Capital: Rs. 15,000 per lot for 1x multiplier
2. Entry Time: After 9:15 AM (Monday to Friday)
3. Last Exit Time: 3:15 PM
4. Deployment Time: Must deploy before 9:15 AM for optimal operation
5. Maximum Drawdown/Loss: Micro stop loss (per counter)
6. Target: No specified limit
7. Number of Trades per Month: 100 to 300 (approx.)

Algo Rules and Notes:

1. Deploy the Algo strategies before 9:15 AM. Avoid activating or reactivating the strategy during late market hours. Best results are typically achieved during early morning sessions.
2. Ensure that your broker is authorized to trade on a daily basis through the Algo system before the market opens. Recheck the deployment of the strategy before 9:15 AM.
3. If you are satisfied with the strategy's performance on a particular trading day, you may stop Algo trading for the day. You can also manually exit your positions as per your satisfaction level.
4. Only use a portion of your capital for trading. For example, if your capital is Rs. 1 lakh, your trading capital should be Rs. 10,000.
5. Adhere to the principle of fewer trades, quality trades, and lower brokerage. It is important to use a reliable broker to minimize slippage in Algo trading.
6. Set your multiplier (lot size) according to your risk tolerance and avoid changing it frequently. It is recommended to keep the multiplier fixed for at least 3 months.
7. Multiple trades may occur in a day, so ensure you use a broker that offers unlimited trades under a low brokerage plan, such as a zero-brokerage plan.
8. Backtest the strategy using your broker in live offline mode to understand its performance. Avoid using paper trading as it may not reflect true results.

Customer Support:

1. Mobile: 8097578729
2. Email: [email protected]

Disclaimer:

Arvind Online Business is not a SEBI-registered investment advisor. The strategies provided here are for educational purposes only. Please consult with your investment advisor before deploying the strategy in live mode. Trading involves risks, and it is essential to have a comprehensive understanding before engaging in it. We do not guarantee any specific outcomes from this strategy. The Profit and Loss (P&L) updates provided are from our live automated systems and are intended for informational purposes only. Paper trading is recommended for learning before live deployment. While the strategy is fully automated, it is advisable to monitor your account for any discrepancies or errors. Always consult your financial advisor before making any investment decisions.

User Responsibility:

Users are advised to maintain an additional 5-10% of the recommended capital as per their broker’s guidelines and handle capital changes on days with rising market volatility. After generating a token between 8:30 AM to 9:00 AM, there should be minimal execution issues. If there are any errors during live deployment, you will receive a notification via WhatsApp or a call from Tradetron. Please check the notification log and resolve any issues promptly. If you are unable to fix the error, please contact us for assistance.

User's Algo Awareness:

While the strategy logic remains the same for all users, entry strikes and prices may vary, leading to different results. Users should understand this variability and accept the outcomes. Over time, these variations typically balance out. It is recommended that users use a low-cost or zero-brokerage broker to optimize net returns.

When selecting a broker, ensure their API is reliable with minimal execution issues. We can provide feedback on brokers based on user experiences.

Important Reminder:

Arvind Online Business is not a SEBI-registered advisor. We do not claim specific returns. Please contact your investment advisor before deploying this strategy live. Options trading is risky, and this strategy should only be used if you have a solid understanding of options trading. If you are uncertain, it is better to avoid it.

Good luck with your trading!

Thanks,

Arvind Kumar