Shades of BankNifty Smart 3.0 – By Get Set Algo | BNF Option Selling Intraday Strategy

Strategy description

Bank Nifty Smart 3.0 is an intraday strategy to take maximum benefit from intraday time decay (THETHA). This strategy is designed in such a way that it will be able to handle sharp rise in volatility (VEGA) and to generate a consistent average monthly return of 8% to 12% on capital deployed.

As someone has rightly said, “Return of capital is more important than Return on capital”. This strategy overrides the human emotions to achieve consistent returns through following pre-defined rules of trading:

• Rule No.1:  To ensure capital protection
• Rule No.2:  Consistent returns
• Rule No.3:  Always follow strict stop loss
• Rule No.4:  Trading basis the sound methodology based on past facts is worth the chance.
• Rule No.5:  Don’t forget the above Rules.

Position Taken:

It daily sell position @ 09:30 AM in three lots of Call & Put from current week expiry. Strike price is selected based on defined parameters.

Capital Requirement:

This strategy requires margin of INR 3 Lacs (With Zerodha). Users are suggested to keep a buffer of INR 30K in addition to aforesaid margin.

(Note: Capital requirement or lot size is purposefully kept on the higher side to provide cushion on highly volatile stop loss hunting days and consistent returns.)

Risk Management:

This strategy smartly manages risk by defining stop loss at every leg. Considering the position size of three lots total loss per day has been restricted to INR 6K. Further, Strategy also reclaims the positions basis the current market levels and tries to fight back for the SL hunting days.

(Note: Stay focused on the big picture when trading. A losing trade should not surprise us; It’s a part of trading. A winning trade is just one step along the path to a profitable business. It is the cumulative profits that make a difference.)

Profit targets:

Strategy Has not yet defined any target cap on profits.

Strategy Statistics