Strategy description

CDS - Intraday Directional Strategy on Crude Oil Options

The CDS strategy focuses on intraday directional trading in crude oil options. This fully automated strategy is designed for disciplined traders who seek to capitalize on directional market movements in crude oil options.

Strategy Overview

1. Start Time: The strategy trades every day post 3:50 PM till 11:30 PM and can enter or exit at any time during these hours.
2. Expiry Consideration: The strategy avoids trades on the expiry day of crude oil options due to low premiums and expected gamma spikes.
3. Session Timing: On days when MCX trades in the evening session, the strategy will enter after 5 PM and exit at the same time.
4. Single Counter: The strategy runs a single counter each day. Within the same counter, it can pause, wait, exit, and re-enter as needed based on market conditions.
5. Automation: This is a fully automated strategy, requiring no manual intervention unless an error occurs. In such cases, users are advised to check their broker’s position to ensure it aligns with Tradetron.
6. Capital Reuse: The strategy allows the reuse of capital from intraday trades on NFO/BFO, provided the broker supports this feature. Users can reach out to find the right broker for this purpose.

Important Facts

1. Capital Requirement: ₹2,75,000
2. Strategy Type: Intraday Directional
3. Order Type: Limit/NRML
4. Expected Trades per Month: 150
5. Maximum Multiplier: 10x (Contact Tradetron support to enable higher multipliers)
6. Strategy Counters: Single counter per day strategy
7. Trade Type: Naked Selling

Disclaimer

Strategy One Research & Analytics is a software service provider. We are not a SEBI-registered investment or financial advisor. You should consult with your investment advisor before trading Futures & Options. Paper trading and monitoring our shared code is the ideal way to understand how the strategy works, and it is recommended to perform this for at least 4-6 weeks before going live with any strategy.

Like any trading setup, algos can result in both profits and losses. Users should not expect unrealistic returns or success ratios with an automated strategy. Please be aware of the risks involved in algorithmic trading.