Strategy description

Strategy description

Key Features of the Strategy:

1. Intraday Strategy: This strategy operates within the day, mitigating the risk associated with overnight movements and news events.
2. Weekly Expiry Nifty Options: Trades are executed in the nearest weekly expiry options, ensuring high liquidity and reducing slippage.
3. Back tested and Forward Tested: The strategy has been thoroughly back tested, forward tested, and run live, ensuring stability even after changes in market conditions such as lot size adjustments.
4. All-Weather Strategy: Designed to work efficiently even with changes in expiry dates or lot sizes, providing adaptability in various market conditions.
5. Potential for Enhancement: There are various techniques explained in the educational videos that can help improve returns over time.

Details:

1. Instrument Traded: Nifty Options
2. Entry Time: Between 10:15 AM and 11:15 AM, when volatility conditions and strangle width criteria are met.
3. Exit Time: Either when the target is reached or by 3:25 PM, whichever comes firs.

Capital Requirements:

1. Normal Trading Days : Rs. 2.25 lacs
2. Expiry Trading Day(Thursday) : Rs. 3 lacs
3. Since the strategy trades in Nifty Options, expiry day is Thursday.
4. SEBI has removed margin benefit for strangles, on expiry days. Hence the jump in capital requirements.
5. The capital requirement includes the maximum drawdown provisions.

The back testing data of the strategy is available on the telegram channel.

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