Strategy description

Strategy Description

This is Sensex weekly option buying momentum based strategy.

Stop Loss is 6% of the premium value for each trade and target is not fixed as it runs on trailing stop loss.

Maximum 4 trades per day with Trailing Stop Loss.

Key Parameters

Rules

1. The initial day start quantity is 100 and then 100 quantity gets added for next day if the counter is not closed by current end of the day.

2. If the counter gets closed on current day. The strategy will restart automatically the next trading day with starting 100 quantity.

3. There can be maximum 4 trades in a day and if the counter does not close the strategy will be running without any positions to avoid gap-up / gap-down situations the next trading day

   (DO NOT EXIT STARTEGY MANUALLY as it will be always running (even after trading day close) )

4. Trailing stop loss is used for every trade taken, so even if the MTM goes in negative for a counter, it will not be much and strategy will try to take the momentum trades only till the maximum quantity reaches to 500

5. The counter will close in positive PNL till the quantity reaches to 500. If the quantity goes beyond 500, the counter will exit with whatever MTM is there at that point of time

Important Note

IMP NOTE : The strategy will take few ITC Ltd stock 1 quantity trades for changing the runtime parameters of strategy for adjusting to the market scenario.

Additional Information

1. Strategy does not need any manual intervention.
2. The capital requirement is for maximum 500 quantity so it will not go beyond INR 70000
3. Please initially deploy in paper trade to see the performance of the strategy. If you find it appropriate, then only deploy in Live-Auto mode.

Contact

If you have any further queries, please feel free to write to,

[email protected]