Strategy description

MCX CrudeOil Option Buying

The MCX CrudeOil Option Buying strategy focuses on daily trades in MCX CrudeOil options. Designed for disciplined traders, this strategy offers a systematic approach to option buying with clearly defined guidelines for execution and risk management.

Strategy Details

1. Start Time: Trades commence at 9:16 AM.
2. Exit Time: All positions are squared off by 23:30 PM to ensure no overnight exposure.
3. No Trade on Expiry: No trades will be executed on expiry day or the day before expiry.
4. Capital Requirement: A minimum capital of ₹30,000 per multiplier (X) is required for deployment. This ensures adequate margin for up to one open position at a time.
5. Average Trades: The strategy executes approximately 240 trades per month, providing sufficient trading opportunities to balance risk and reward.
6. Maximum Open Positions: The strategy will never exceed one open position, ensuring focused risk management.

User Responsibilities

Capital Buffer

1. Additional Capital: It is strongly recommended to maintain a buffer of 40-50% above the minimum capital requirement. This buffer ensures smooth operation.
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

Variation in Outcomes

1. While 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 results for all users.

Cost Management

1. Brokerage: To optimize, 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 options 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.