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created : 2 years ago| |  live deployment: 2

created : 2 years ago |  live deployment: 2

SOLVERS EDGE

by:  QCALPHA

SD

Strategy description

Short Volatility 

Hedged Overnight



The SOLVERS platform (ShOrt & Long Volatility Enhanced Returns System) runs non-directional short option trades to extract the volatility premium. 


The SOLVERS EDGE strategy takes short options positions on a positional basis for Nifty & BankNifty


While trades are taken at any time in the day the algorithm triggers, Overnight Protection is taken for all trades that extend into the close for the day. The trade positions are completely hedged overnight. 


The strategy trades on Nifty & BankNifty Current Weekly Expiry options.


For detailed backtests, do get in touch with us. 


System Capital Requirements (1X Multiplier):

Margin while in Trade: As per broker for short straddles on Nifty and BankNifty 

Risk Capital: ₹ 1L

Trading Capital:  2L including Margin for trades + Risk Drawdown

Broker Note:
This strategy buys OTM options as hedges when in short ATM straddle trades. This does not work with Zerodha, Aliceblue or brokers who will not allow buying OTM options. 

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