created : 2 months ago| | live deployment: 5
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
| Parameter | Value |
|---|---|
| Maximum Drawdown | 15% of capital |
| Capital Requirement | ₹800,000 per 1× multiplier |
| Cycle Duration | Friday to Thursday (entry possible anytime) |
| Instrument | Nifty Weekly Options |
| Type | Positional (with 3× hedge) |
| Average Trades Per Day | 8–12 round trips |
| Monthly Brokerage and Taxes | ₹8,000 |
Advantages
- Incorporates uncorrelated strategies to minimize drawdowns
- Starts with non-directional setups that transition into directional positions as the market trends
- Overnight positions capture higher time decay, secured with a 3× hedging structure
Disadvantages
- Sharp U-, V-, W-, or K-shaped market movements can lead to losses despite diversification
- 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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