Strategy description

VEL SFT3.0: Intraday Trading Strategy

Developed by Sravya Financial Technologies

"VEL SFT3.0" is a proprietary algorithmic intraday trading strategy designed for stocks, emphasizing precise entry and exit points, robust risk management, and disciplined money management. 

Core Principles

1. Accurate Entries: Timing trades effectively to capture momentum.
2. Strategic Exits: Locking in targets or cutting losses at predefined levels.
3. Risk & Money Management: Protecting capital through strict adherence to position sizing and loss limits.

Key Features

1. Trading Instruments: A curated list of 20 highly liquid and volatile stocks from the National Stock Exchange (NSE).
2. Trade Timing:
   1. Entry: After 9:18 AM IST.
   2. Exit: All open positions closed by 3:15 PM IST.
3. Trade Size: Fixed position of Rs. 20,000 per stock.
4. Capital Requirement: Only 20% of the transaction value as an upfront margin in the cash market segment.
5. Daily Risk Control:
   1. Maximum Loss: Rs. 1,500 per day (fixed stop-loss).
   2. Maximum Profit: Rs. 1,900 per day (fixed profit-taking exit).
6. Market Suitability: Performs best in trending markets; less effective in sideways markets.
7. Ease of Use: Requires minimal market monitoring, ideal for traders seeking automation.
8. Methodology: Combines momentum indicators, instant trend detection, and price action for precise entry points.
9. Live Trading Readiness: Test with live paper trading for at least one month before deploying real capital.

Risk Management & Position Sizing

Risk Management

The cornerstone of this strategy is ensuring capital preservation by capping losses. Without it, even the best strategy risks account depletion.

Position Sizing

1. Minimum account size: Rs. 50,000 (including buffer margin) for a 1x position.
2. Scaling: Increase position size proportionally with account size:
   1. Rs. 1,00,000 = 2x position.
   2. Rs. 1,50,000 = 3x position.
3. Larger positions require multiples of the minimum margin.

Fee Structure & Profit Sharing

1. Monthly Fee: No fixed Fee.
2. Profit Sharing: 10% of monthly profits, calculated solely from TradeTron platform records.
3. Billing Process:
   1. Invoices are issued on the 1st of the following month.
   2. Payment due by the 3rd, with transaction details reported to unblock trading access if delayed.
4. Profit & Loss Adjustment:
   1. Profits: 10% of monthly gains (e.g., Rs. 10,000 profit = Rs. 1,000 shared).
   2. Losses: Carried forward to offset next month’s profits (e.g., Rs. 5,000 loss last month + Rs. 10,000 profit this month = Rs. 5,000 taxable profit x 10% = Rs. 500).
   3. No profit-sharing applies in loss-making months.

Choosing a Broker

Opt for brokers offering zero or low-commission trading to maximize returns, as high fees can erode profits in high-volume day trading. Research brokerages with competitive rates and reliable execution suited for algorithmic strategies.

Disclaimer

Sravya Financial Technologies is not a SEBI-registered advisor. Trading involves risk, and users adopt this strategy at their discretion. Past performance does not guarantee future results, and no specific profit or loss is assured. Consult a registered financial planner and conduct live paper trading for at least one month before transitioning to a live account.

Why VEL SFT3.0?

This strategy empowers intraday traders with a disciplined, momentum-driven framework that balances risk and reward. With automated execution and built-in safeguards, it’s designed for traders seeking consistency without constant market oversight. Test it, master it, and trade it—responsibly.