Strategy description

FrozenDelta

1. Tags: #SemiDirectional #TrendCapture #LowDrawdown #Portfolio #Nifty
2. Overview: FrozenDelta is a tactical, semi-directional algorithm designed to capture intraday trends while filtering out market noise. Instead of entering at market open, it waits until 10:00 AM to allow early volatility to settle. Once a clearer directional bias forms, the algorithm deploys a risk-defined structure to ride momentum while strictly managing overall portfolio Delta.
3. CRITICAL: Portfolio Recommendation: FrozenDelta is System 2of our 3-Strategy Portfolio. While it can run standalone, it is mathematically optimized to work best when deployed alongside:
   1. RollercosterV (link removed as requested)
   2. Tidal Surge (link removed as requested)
4. The “Tri-Algo” Advantage:
   1. Combined Drawdown: When running FrozenDelta with its partner systems, the historical portfolio drawdown is optimized to approximately 4%.
   2. Synergy: While RollercosterV focuses on premium decay harvesting, FrozenDelta manages the directional component, helping smoothen the overall equity curve.
5. Technical & Operational Specifications:
   1. Capital Requirements:
      1. Minimum Capital: ₹2,50,000
      2. Recommended Capital: ₹3,00,000
      3. Buffer Note: Trend-following strategies may require margin adjustments. A 10% buffer is mandatory for smooth execution.
   2. Strategy Logic & Behavior:
      1. Instrument: Nifty 50 Weekly Options
      2. Entry Time: 10:00 AM (post-morning volatility)
      3. Exit Time: 03:15 PM (no overnight risk)
      4. Market Phase:Designed to perform across both trending and sideways conditions.
         1. Note: The strategy may face drawdowns during sharp V-shaped reversals, where momentum shifts faster than the adjustment logic.
   3. Deployment Instructions (Important):
      1. Do Not Interfere: The algorithm uses internal trailing mechanisms. Avoid manual exits, as premature intervention can disrupt the intended risk-reward structure.
      2. Paper Trading: Recommended for 30 days to understand behavior, especially during trend reversals.