Strategy description

Strategy Description: Nifty Options Intraday Strategy

Key Features of the Strategy:

1. Intraday Strategy: Operates within the trading day, mitigating risks associated with overnight market movements or news events.
2. Weekly Expiry Nifty Options: Utilizes trades in the nearest weekly expiry options to ensure high liquidity and minimize slippage.
3. Backtested and Forward Tested: Thoroughly backtested, forward tested, and live tested, ensuring stability even with market changes like lot size adjustments.
4. All-Weather Strategy: Adaptable to changes in expiry dates and lot sizes, working efficiently in various market conditions.
5. Potential for Enhancement: The strategy includes techniques outlined in educational resources.

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: When the target is reached or by 3:25 PM, whichever comes first.

Capital Requirements:

1. Normal Trading Days: ₹2.25 Lacs
2. Expiry Trading Day (Thursday): ₹3 Lacs
3. Since the strategy trades Nifty Options, the capital requirement increases on expiry days due to SEBI's removal of margin benefits for strangles.
4. The capital requirement includes provisions for maximum drawdown.

Backtesting and Forward Testing:

The strategy has been thoroughly tested in multiple market conditions, both through backtesting and forward testing, to ensure stability and reliability. The testing has been completed with attention to various conditions like lot size changes and volatility adjustments.

Important Notes:

1. Ensure you monitor and review the strategy periodically, as market conditions may change, impacting the strategy's performance.
2. The backtesting data of the strategy is available on the designated channel.

Disclaimer:

We are not SEBI-registered financial advisors. This strategy is for educational purposes only, and we do not guarantee any specific financial outcomes. Please consult with a qualified financial advisor before deploying this strategy in a live environment. Options trading involves risks, and it is important to understand those risks before taking action.

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