Strategy description

Strategy Creator Overview on the Strategy

1. Strategy initiates: Place orders depending on conditions from 09:18 AM to 03:28 PM.
2. Completely directional based strategy: Trades are based on market bias or trend analysis.
3. Considering option spikes: Due to sudden spikes, a very huge stop loss is kept. The strategy also creates an opposite leg to balance the trade. For example, if we have two option buy strategies, deploying both will help manage each other to protect the capital.
4. Entry point: The strategy enters trades very close to ATM (at the money) options or ITM (in the money) options to minimize theta decay.
5. Strategy approach: The strategy tries to close the position in a positive note. In rare cases, it may close a trade with a negative result.

Strategy Creator Guidelines for the Strategy Function

1. Low investment traders (Rs. 30,000 to Rs. 50,000):
   1. Low investment traders are at the maximum risk due to low capital. I suggest not trading with exactly Rs 30K or 50K.
   2. The capital required for strategy is Rs 30K, but to manage the trades, additional capital is needed for one buy and one sell position plus buffer money.
2. Job Holders (who cannot concentrate on the market due to a job):
   1. Maintain Rs 70K to 80K to manage both buy and sell positions effectively.
   2. Deploy both strategies at once. Running a single strategy may trigger a huge stop loss and affect your capital.
   3. Don’t stop the strategy forcibly if it’s running in one direction or stuck in a range-bound market.
   4. Check periodically during office hours. If you find that both strategies are running, for example, if CE is at +1000 and PE is at -700, exit both strategies to secure your profits, and the strategy will initiate the next trade.
3. Professional Traders (who can sit in front of the screen during market hours):
   1. Maintain Rs 2 Lakhs to 3 Lakhs to manage buy and sell positions effectively.
   2. Deploy both strategies at once. Running a single strategy may trigger huge stop losses and affect your capital.
   3. Don’t forcibly stop the strategy if it’s running in one direction or stuck in a range-bound market.
   4. Exit all positions manually at 03:27 PM if you have a positive MTM (profit). Even if the last trade is running with a loss, exit both strategies to lock in profits for the day.
   5. If your MTM is in loss at 03:25 PM, activate the opposite strategy. The opposite strategy will initiate at 03:28 PM to balance the trade for the next morning.
   6. If you have a strong intuition that the market will open positively, pause the opposite strategy before 03:27 PM to avoid a carry-forward trade.
   7. Every day at 03:28 PM, both strategies will initiate trades automatically. If you don’t want any trade, you can pause it.
4. VERY IMPORTANT TO BEAT ANY TYPE OF MARKET CONDITION:
   1. To make sure the strategy works as per your requirement, apply the STEP UP METHOD. For example, if the CE position initiated at Rs 850 and the market doesn’t move in your favor, deploy the opposite strategy (2x multiplier for PE). Continue adding opposite positions as needed until your MTM turns positive.