created : 1 week ago| | live deployment: 1
Strategy description
Smart Algo – Wealth Booster Strategy
The Smart Algo – Wealth Booster approach combines traditional non-directional option selling with short-term overnight directional option buying. The objective is to benefit from movements in the Nifty index using structured STBT (Sell Today, Buy Tomorrow) and BTST (Buy Today, Sell Tomorrow) setups.
Each trading cycle operates from one weekly expiry to the next and focuses exclusively on Nifty weekly option contracts.
Strategy Snapshot
- Execution Style: STBT & BTST
- Market Approach: Directional, Range-bound, and Directional Buy (based on trend or sideways view)
- Instrument: Nifty Weekly Options
- Profit Booking: No predefined target; profits are trailed once a specified level is achieved
- MTM Stop Loss: ₹9,000 per cycle (approximately 3% of deployed capital)
- Overnight Exposure:
- Holds selected directional option buy positions overnight to capture gap-up or gap-down openings
- Sold option legs are appropriately hedged to manage risk
Core Strengths
- STBT Approach: Quickly aligns with changing market trends and adapts to directional shifts.
- BTST Setup: Overnight directional positions aim to capture potential opening gaps.
- Blended Methodology: Combines directional and non-directional strategies to balance opportunity and risk exposure.
Operational Details
- Capital Requirement:₹3,00,000 per multiple.
- Actual margin usage may be lower.
- ₹3,00,000 is recommended considering historical drawdowns and additional margin needs on weekly expiry days.
- Trade Frequency: Approximately 6–7 transactions per day (entries + exits).
- Entry & Re-entry Logic:
- Positions remain active until weekly expiry or MTM stop-loss trigger.
- Multiple entries and exits may occur within a single weekly cycle.
- After exit, fresh trades may initiate on the next trading day.
- Exit Rules:
- All trades are squared off at weekly expiry or upon MTM stop-loss activation.
- No positions are carried beyond Nifty expiry day.
- Market Suitability:
- Designed for both trending and sideways markets.
- May experience temporary drawdowns during highly volatile or whipsaw conditions.
- Minimum Lot Recommendation: 2 Multiples (to offset brokerage and transaction costs).
Disclaimer
- Smart Algo is not a SEBI-registered advisor.
- Trading in derivatives carries significant risk.
- Past performance does not guarantee future results.
- Strategies should not be deployed solely based on historical performance.
- Paper trading for at least one month is strongly recommended before going live.
- Deploy only if you fully understand and accept the associated risks.
Important Note
- Trading strategies are not shortcuts to instant wealth.
- Consistency and discipline are essential for long-term success.
- Algo trading eliminates emotional decision-making and performs best when given adequate time.
- Allow at least 2–3 months to evaluate real performance potential.
- Avoid manual intervention such as pausing, force exits, or modifying trades.
Contact
- Email: [email protected]
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