Strategy description

Trend-Following Options Strategy (Carryforward Model)

Core Philosophy

1. Systematic trend-following strategy aligned with the Nifty index.
2. Positions are directional:
   1. Falling Nifty → Sell Put Spreads
   2. Rising Nifty → Sell Call Spreads
3. Designed as a continuous selling strategy; stopping or pausing mid-cycle is not advised.

Trade Mechanics

1. Carryforward structure with positions held until predefined target or stop-loss triggers.
2. Hedged spreads provide protection against overnight gap-up and gap-down risks.
3. The strategy automatically initiates the next counter shortly after the previous one closes.
4. Can execute up to approximately 100 trades per month, depending on market conditions.

Risk Management

1. Counter-wise predefined targets and stop-losses to manage gains and losses.
2. Leg-wise trailing stop-loss dynamically protects mark-to-market (MTM) gains.
3. Hedging ensures disciplined exposure and controlled drawdowns.

Operational Requirements

1. Do not pause or stop the strategy once deployed, as this disrupts the risk–reward framework.
2. Recommended to use brokers offering continuous auto-login.
3. If auto-login is unavailable, users must log in and generate API tokens every morning to avoid missing trades, especially stop-loss executions critical for risk management.

Performance & Support

1. Backtest reports available on request.
2. For assistance:
   1. Email: [email protected]
   2. WhatsApp: 9711490798