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created : 1 month ago| |  live deployment: 2

created : 1 month ago |  live deployment: 2

Nifty Alpha Box V1

Strategy description

Nifty Alpha V1


Overview

Nifty Alpha V1 is a combination of 6 to 10 uncorrelated strategies for enhanced diversification and stability for long-term.


Key Details

ParameterValue
Maximum Drawdown15% of capital
Capital Requirement₹800,000 per 1× multiplier
Cycle DurationFriday to Thursday (entry possible anytime)
InstrumentNifty Weekly Options
TypePositional (with 3× hedge)
Average Trades Per Day8–12 round trips
Monthly Brokerage and Taxes₹8,000 


Advantages

  1. Incorporates uncorrelated strategies to minimize drawdowns
  2. Starts with non-directional setups that transition into directional positions as the market trends
  3. Overnight positions capture higher time decay, secured with a 3× hedging structure


Disadvantages

  1. Sharp U-, V-, W-, or K-shaped market movements can lead to losses despite diversification
  2. Estimated monthly brokerage and taxes of ~₹8,000  when executed


Recommendation

If you're mentally prepared to withstand both capital and time-based drawdowns for up to two months, this strategy offers strong potential for long-term gains and financial growth. It maintains a Sharpe ratio of 3, indicating a favorable risk-reward balance.


Disclaimer

FinAI Algo is not a SEBI-registered investment or financial advisor. Historical performance is not a guarantee of future returns, especially in a market influenced by global hedge funds and regulatory changes. We strongly recommend paper trading our strategies for at least one month. Once confident, consider a gradual transition to live deployment.

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