Strategy description

Lakshman Rekha Algo

Lakshman Rekha Algo is a structured option-buying strategy inspired by the mathematical principles of W.D. Gann. The system automatically calculates daily Gann-based support and resistance levels and executes trades only when price action confirms a strong directional move.

How the Strategy Works

1. Automatic Gann Levels at 9:20 AM
   Every trading day at 9:20 AM, the algorithm calculates fresh Lakshman Rekha support and resistance zones using Gann-based mathematical formulas.
2. EMA Trend Filter
   If a candle closes below the EMA and below the calculated support/resistance zone, the algo enters a PUT trade.
   If a candle closes above the EMA and above the calculated support/resistance zone, the algo enters a CALL trade.
3. Averaging Rule
   If the trade moves 13 points against the position, the algorithm automatically adds one additional lot to improve the average entry price.
4. No Stop-Loss Model
   This is a high-risk, high-reward structure without a fixed stop-loss, relying on directional continuation and price returning to trend.
5. Daily Profit Target
   The system stops trading for the day once it achieves ₹2,500 profit per deployment.

Key Features

1. Pure W.D. Gann mathematical level calculation.
2. Automatic support and resistance generation daily at 9:20 AM.
3. EMA-based trend confirmation combined with breakout/breakdown logic.
4. Structured averaging system (adds 1 lot at –13 points).
5. Designed specifically for Nifty and Bank Nifty option buying.
6. Fully systematic, disciplined, and intraday-only execution.

Ideal For

1. Traders who follow or believe in Gann methodologies.
2. Intraday option buyers.
3. High-risk, high-reward scalpers.
4. Users who prefer rule-based algorithmic execution.