Strategy description

Strategy Overview

This strategy is designed for intraday breakout option buying opportunities in Nifty 50 and Sensex. It uses a blend of price action, momentum, and volume-based indicators to time entries and exits with discipline.

Trading Instruments

1. Nifty 50 Options
2. Sensex Options

Important Notes

1. Strictly Intraday: No overnight carry positions. All trades are squared off by 15:20 hrs.
2. Loss Management:
   1. If continuous losses occur, redeploy the strategy.
   2. If the issue continues, contact us immediately for support.
3. Avoid Manual Interference: Stick to pre-defined rules for best results.

Risk Management & Position Limits

1. Maximum Positions: One open position at a time per set.
2. Stop Loss: ₹500 per trade (subject to bid price availability at exit time).
3. Universal Exit: Combined loss limit of ₹800 triggers exits across positions.
4. Drawdown Control: Stop trading if total drawdown exceeds 4% of deployed capital.

Discipline Guidelines for Algo Trading

1. Paper Trading First: Test in paper mode for at least 1 week. Switch to live only after consistent performance.
2. Go Live Criteria: Deploy live after stable & profitable paper results.
3. Multiplier/Volume Increase Rule:
   1. Increase only after 1 full month of successful live trading.
   2. Never increase lots to recover losses.