Strategy description

The strategy first takes hedge positions and then builds the remaining legs. This ensures that excessive margin is never called while the setup is being constructed or managed afterwards. As the market moves, the legs are rolled to maintain a delta-neutral position at the strategy level.

All trades stay overnight, allowing the strategy to capture overnight theta decay as well. Since all positions are hedged, overnight risk is capped.

Key Parameters

Error Management in Live Deployment

1. If execution issues occur during live deployment, the “Error Execution – Manage” option will be visible on the Tradetron page.
2. Try Again: Resolve the issue and retry the execution.
3. Cancel: Not recommended, as the strategy may attempt the trade again.
4. Completed Manually: Mark the trade as completed after executing the pending trade manually at the broker’s end.

End-of-Day Scenarios

1. If an error occurs, corrective action can be taken as described above. However, even if left unattended, all positions are created as intraday (MIS) positions and will be automatically closed by the broker before market close. This ensures no carry-forward risk to the next trading day.
2. If the strategy ends in an error state after market close, simply reactivate it the next day. The strategy will start fresh since all erroneous positions would already have been closed by the broker.

Important Notes

1. Occasional execution errors, even if left unattended, will not significantly impact results as hedges are always present.
2. The system is designed for all market types; however, on extremely volatile days (IV above 40, which is very rare), it is advisable not to deploy live.
3. A very low or zero brokerage account is recommended, as this strategy generates approximately 20 orders per day due to frequent hedge adjustments.
4. This is a true “Set and Forget” strategy.

Support Contact

Email: [email protected]
Phone: 9920201200