Strategy description

Nifty Trapping Master is an intraday option buying strategy that primarily operates in the Index Options market. It enters with long positions in the options market and focuses on momentum-based trading in option buying.

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.)

Mandatory Rules for Algo System:

1. Deploy the Algo strategies before 9:15 AM. Avoid activating or reactivating the strategy during late market hours. The best results are achieved during early morning sessions to capture market moves with a micro stop loss.
2. Make sure your broker is authorized to trade on a daily basis through Algo before the market opens. Recheck the deployment of the strategy before 9:15 AM.
3. When you are satisfied with the results from the strategy for a particular trading day, you can stop the Algo trading for the day. You may exit your positions manually based on 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. Follow the principle of fewer trades, quality trades, and lower brokerage. It is essential 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. It is crucial to backtest the strategy using your broker in live offline mode to understand the strategy's performance. Avoid using paper trading in platforms like Tradetron, as it may not reflect true results.

Disclaimer:

Arvind Online Business is not a SEBI-registered investment advisor. The strategies provided here are for educational purposes only. We are not liable for any trades or decisions made by the viewer. Trading involves significant risk and should be done only after thorough understanding and consultation with a qualified financial advisor. Do not base your decision to deploy any strategy solely on past performance. We are not responsible for any profits or losses arising from your trades. The Profit and Loss updates provided are from our own live automated systems and are shared for informational purposes only. Paper trading is the best way to learn before live deployment. While the strategy is fully automated, it is advisable to monitor your account for any discrepancies or errors. Please 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 adjust capital as required during periods of market volatility (e.g., rising VIX days). After generating a token between 8:30 AM to 9:00 AM, there should be minimal execution issues. If there are errors during live deployment, users will receive a notification via WhatsApp or a call from Tradetron. Please check the notification log for more details and resolve any issues promptly. If you are unable to fix the issue, please reach out to us through our support channels.

User's Algo Awareness:

While the strategy logic remains the same for all users, the entry strike and price may vary for each individual, which can lead to different results. Users should understand this and accept the variability in outcomes. Over the long run, these variations often balance out. It is recommended that users consider using low-cost or zero-brokerage brokers to optimize their net returns.

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

Important Reminder:

Arvind Online Business is not a SEBI-registered advisor. We do not make any claims about specific returns or results. Please consult with your investment advisor before deploying the strategy in live mode. Option trading is inherently risky, and you should only use this strategy if you have a comprehensive understanding of options trading. If you are uncertain, it is better to refrain from trading.

Good luck with your trading!

Thanks,

Arvind Kumar