NIFTY Weekly Directional Credit Spread v1

NIFTY Weekly Directional Credit Spread

Hedged, rule-based intraday NIFTY credit spreads with defined risk and a daily loss limit.

An automated intraday strategy that sells hedged credit spreads on NIFTY weekly options, on the call (CE) or put (PE) side, only when its predefined conditions are met. It trades one spread at a time, up to 3 trades a day, and closes everything by 2:30 PM. Every spread includes a protective hedge, so the risk on each trade is defined.

Highlights

• Hedged credit spreads on NIFTY weekly options, so the risk on each trade is defined
• Intraday only (MIS): all positions are closed by 2:30 PM
• One spread open at a time, maximum 3 trades per day
• Premium filter: trades only when option premiums are within a predefined range, avoiding very low-premium setups, which matters most on expiry day
• No new trades late in the session (after 2:00 PM, or after 1:00 PM on expiry day)
• Predefined stop-loss, profit booking and a daily loss limit
• Fully automated through Tradetron

Strategy Philosophy

The strategy aims to benefit from option premium decay in the direction the market is moving. It uses rule-based execution and predefined risk instead of discretionary decisions, and trades only when all of its conditions are met.

Trading Window

Entries from 09:22 AM. No new entries after 02:00 PM (01:00 PM on expiry day). All positions closed by 02:30 PM. Monday to Friday.

Capital and Sizing

Minimum 10 lots, up to 100 lots. The 10-lot minimum is sized on the expiry-day margin requirement, Actual margin can vary with market conditions and broker requirements, so keep a buffer above the minimum.

Suitable For

• Traders who want systematic, intraday NIFTY options selling
• Traders who understand margin-based, hedged strategies
• Users who prefer automated, rule-based execution
• Users who understand the risks of intraday options trading

Support

For questions about the strategy, use the message option next to the creator's name on the strategy page.

Important Note

1. The strategy is designed for automated execution through Tradetron.
2. Manual intervention, pausing, redeploying or reactivating the strategy during trading hours may affect its expected execution, including the daily trade limit.
3. Manual intervention should generally be limited to technical issues, server downtime or other exceptional circumstances.
4. Under normal market conditions, let the strategy run according to its predefined rules.

Risk Disclosure

1. This description is for information only and is not investment advice or a recommendation to trade.
2. All trading decisions and financial risks remain with the user. No profit or return is guaranteed. Options trading involves substantial risk, and losses can be significant even with hedged positions.
3. The Creator is not responsible for trading losses, loss of capital, missed profits, slippage, execution differences, brokerage, taxes, technical failures or other costs arising from a user's deployment, except to the extent liability cannot legally be excluded.
4. Past performance is not indicative of future performance. Actual results may differ due to market conditions, liquidity, slippage, execution delays, brokerage, taxes and other costs.
5. Margin requirements can change, and a margin shortfall can prevent orders from being placed or lead to positions being squared off.
6. Users must decide whether the strategy suits their own financial circumstances and risk tolerance, and should deploy only risk capital.
7. Users are strongly encouraged to test the strategy in paper mode before live deployment.
8. Manual intervention, modification, pausing, redeployment or reactivation by the user may affect intended execution and results, and the user assumes responsibility for it.

Description is provided by the creator. Tradetron does not endorse any strategy; review the composition and your own risk limits before subscribing.