Strategy description

NIFTY INTRADAY WEEKLY OPTION SELLING

The NIFTY INTRADAY WEEKLY OPTION SELLING strategy focuses on daily trades in Nifty weekly options. Designed for disciplined traders, this strategy offers a systematic approach to option selling with clearly defined guidelines for execution and risk management.

Strategy Details

1. Start Time: Trades commence at 9:17 AM.
2. Exit Time: All positions are squared off by 3:22 PM to ensure no overnight exposure.
3. Stop Loss: Not defined in the strategy. Use discretionary measures as per risk tolerance.
4. Capital Requirement: A minimum capital of ₹2,00,000 per multiplier (X) is required for deployment. This ensures adequate margin for up to four open positions at a time.
5. Drawdown: 5%
6. Activation: Kindly do not activate the strategy in between the day trading session.
7. Average Trades: On average, the strategy executes ~240 trades per month, providing sufficient trading opportunities to balance risk and reward.
8. Maximum Open Positions: The strategy will never exceed four open positions simultaneously, ensuring focused risk management.
9. Shared Code: The strategy can be accessed using the code 488552bc-5a73-472c-ab5c-5161e7c53986. To diversify the risk, you may subscribe to another strategy for SENSEX: SENSEX Strategy. The SENSEX strategy can be accessed using the code 85e422f6-ebc8-4f55-9e9d-0113c2b2ead1.

User Responsibilities

1. Capital Buffer: It is strongly recommended to maintain a buffer of 5-10% above the minimum capital requirement. This buffer ensures smooth operation, especially during high-volatility sessions, such as those marked by a rising VIX (Volatility Index).
2. Token Generation: Users should generate a trading token between 8:30 AM and 9:00 AM to enable seamless deployment and execution of the strategy.

Error Management

1. Notification System: In case of deployment or execution errors, notifications will be sent via WhatsApp or calls from Tradetron. Users are advised to monitor the notification log in the Tradetron platform to identify and resolve issues promptly.
2. Support Channels: For unresolved issues, dedicated support is available via the Telegram group. Ensure timely communication for any queries or troubleshooting.

Algo Awareness for Users

1. Variation in Outcomes:Although the strategy's logic is consistent on Tradetron, minor variations in outcomes may occur due to factors such as:
   1. Entry Strike and Price: If one user enters a position at a strike price of 1300 and another at 1305, the adjustments and resulting P&L for the day might differ slightly.
   2. Execution Speed: Differences in broker API performance and latency can also influence outcomes.
2. Over time, these variations tend to balance out, ensuring long-term consistency in returns for all users.

Cost Management

1. Brokerage: To optimize profitability, users should consider brokers offering low or zero brokerage fees for options trading.
2. Reliable APIs: Select brokers with robust and reliable APIs to minimize execution errors and latency issues.
3. For assistance with broker selection or advice on managing trading costs, users are encouraged to reach out.

Disclaimer

1. Non-SEBI Registered: Chhaya Singh is not a SEBI-registered advisor.
2. Risk Awareness: While this strategy has been rigorously tested and optimized, it does not guarantee any specific financial outcomes.
3. Suitability: The strategy is recommended for individuals with a solid understanding of option selling and trading. It is unsuitable for beginners or those with limited risk tolerance.
4. Consultation: Prior to live implementation, it is strongly advised to consult with a qualified financial advisor to ensure the strategy aligns with your financial goals and risk appetite.