created : 3 months ago| | live deployment: 2
Strategy description
Intraday Momentum Trading Strategy – Sensex Options
Strategy Overview
This intraday momentum trading strategy uses price action and volume-based indicators to trade Sensex options on 1-minute and 2-minute charts.
| Parameter | Details |
|---|---|
| Traded Instrument | Sensex Options |
| Trading Hours | 9:15 AM – 3:19 PM IST (all positions closed before 3:20 PM) |
| Timeframe | Entry signals generated on 1-min & 2-min charts |
| Capital Requirement | ₹5,000 – ₹25,000 per lot (depending on ATM spot premium, with buffer margin) |
Risk Management Rules
- Fixed Loss Rule: If total loss in the current trading session reaches ₹600, strategy will be deactivated for the day. Manual reactivation required to continue.
- Profit Cap Rule: If total profit in the current session reaches ₹2,500, strategy will be deactivated for the day. Manual reactivation required to continue.
Important Notes
- Strictly Intraday: No overnight carry positions. Ensure all positions are exited by 15:20 hrs.
- Loss Management:
- First, try redeploying your strategy if losses continue.
- If issue persists, contact support for assistance.
Discipline Note for Algo Trading
- Initial Paper Trading: Run in paper mode for at least one week. Do not switch to live until results are consistent.
- Live Deployment Criteria: Go live only after stable, positive paper-trading performance.
- Drawdown Control: Halt live trading immediately if losses exceed 4%. Do not increase multiplier or volume to recover.
- Multiplier Increase Rule: Only increase volume after one full month of satisfactory live performance.
- General Discipline: No emotional decisions—rely on backtesting and real-time data. Monitor and log performance regularly.
Disclaimer
- This strategy is for educational purposes only and does not constitute investment advice. All trading involves risk and past performance does not guarantee future results. External factors such as market volatility, broker execution, connectivity, and platform stability can impact live performance. It is strongly recommended to paper-trade first, maintain additional margin, and monitor the strategy closely.
- Users are solely responsible for their trading decisions. We are not liable for any losses due to technical glitch, fund error, or not following pre-decided rules.
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