Strategy description

Live Shared Code

Shared Code: ef350ddd-5866-4e7c-babf-6b7ea22d4a41

Important Note:

F&O trading carries significant risks. If you expect more than 10-14% yearly returns from trading, you may be misinformed. Many traders face financial hardship, and 99% of traders lose money. The 1% who profit typically earn less than 14% annually. Trading should not be viewed as a quick way to make money, and it is not advisable to borrow money or depend on trading as a primary source of income.

Strategy Description:

This strategy operates in SENSEX Index Options with weekly expiry options. It follows an ATM short straddle strategy, which becomes unpaired during adjustments.

Key Details:

1. Capital Requirement:  ₹300,000 for 1x deployment (Un-Hedged Option Selling/Writing Algo)
2. Strategy Type:  Single Counter Algo with Fixed Stop Loss and Target
3. Entry Time:  Dynamic entry after 9:24 AM, may skip some days based on market conditions
4. Exit Time:  Universal exit at 3:13 PM
5. Average Number of Trades per Day:  10-15 Trades/Day (Buy + Sell)
6. Works in Non-Directional/Semi-Directional Markets
7. Execution Type:  MIS and Market Orders Only
8. Lot Size:  No tranching orders are executed in full, which may lead to slippage

Important Information:

1. Capital Management: Maintain an additional 5-10% capital above the broker’s recommended amount to handle capital fluctuations during periods of high volatility (e.g., rising VIX). Once capital is properly maintained and a token is generated between 8:50 AM and 9:13 AM, execution issues are rare, occurring in only 5% of cases.
2. Error Handling: If there are any errors during live deployment, you will receive notifications via WhatsApp or call from Tradetron. Check the notification log to rectify any issues. If the error persists, seek assistance through the Telegram group.

Algo Strategy Awareness:

Premium-based algorithms, which do not rely on external indicators, may exhibit variations in PnL across users. The difference arises from the entry premium captured during the morning entry time. The premium you receive (e.g., ₹200 vs ₹203) depends on the market depth, which affects your entry price, stop loss (SL), and take profit (TG) levels. This can result in differing SL and TG levels for each user, causing variation in outcomes, especially if market conditions change abruptly.

It is recommended to monitor your live trades or engage in paper trading to understand the strategy’s performance better. Avoid comparing results with others, as discrepancies based on entry prices and execution times are normal. Over time, these differences will generally balance out, and users’ PnL will largely align.

Disclaimer:

While Sachin Jain Algos provides a carefully designed strategy, it is important to note that I am not a SEBI-registered advisor. The strategy is based on my observations and testing, but I do not claim any guaranteed returns. Option trading involves 100% risk, and it is highly recommended to consult with a financial advisor before deploying this strategy in live mode.

Contact Information:

• Email: [email protected]