Nifty-Bank Nifty options trading strategies

This strategy is taken out of one of the video shared by Algo Test Instrument:  Nifty CE and PE weekly option based on SPOT which is trading near to premium of 50 point at 1045 Entry:  Enter into CE and PE when their premium becomes 20% more than that at 1045  E.g. say at 1045, 23300 PE is trading at 41 (closest to 100 point) and 23900 CE is trading at 52. So we will buy 23300 PE once it price reaches 1.2* 41 ~ 49.2. 23900 CE will be entered once it reaches 52 * 1.2 ~ 62.4 Stop Loss -  25% of entry price  Trailing Stop Loss - Trail stop loss by 0.75% for every 1% increase in profit Exit -  Exit at 1515 Capital Needed:  Assuming we will be buying option at average price of 60 and both CE and PE option can be traded at a given point of time so overall money need to buy the positions for 1 Lot of CE + 1 Lot of PE will be 60 * 2 * 25 = 3000. Now the maximum drawdown for this strategy is 8.2k so thrice of that will be kept as buffer so trading capital for ...

Expiry day journey strategy which is run on the all the index options on their expiry day except for Mid Cap Nifty ->  Expiry day Journey strategy . As MTM swing is huge for this, I am executing with less lots (2).  These strategies are running in Algo Test Back Testing for Nifty Expiry day (Updated as of 31-Oct-24) Actuals (Started trading from 11-Jul-24) Back testing for Sensex Expiry day (Updated as of 31-Oct-24) Actuals  (Started trading from 5-Jul-24)

Sensex Journey strategy on Thu as detailed out by Stock Mock @   Stock Mock Sensex Journey This strategy is running in Algo Test Logic of the strategy is also described as below: On 1 day to Sensex expiry , at 0922 sell Sensex ATM CE/PE weekly options based on spot with SL of 60% on both legs In case SL is hit for CE option Sell ATM PE weekly option based on spot with SL of 25% If SL is hit for ATM PE sold in above step then buy an ATM put weekly option with Target as 40% and Stop loss as 25% In case SL is hit for PE option Sell ATM CE weekly option based on spot with SL of 25% If SL is hit for option sold in above step then buy an ATM put weekly option with target as 40% and stop loss as 25% Exit at 15:15 Keep a MTM SL of 5k per lot Back Testing Details (Updated as of 6-Dec-24) Actuals (Started trading from 4-Jul-24) Date wise trade details for Nov 2024: Reason for high difference between actual trades and backtesting 14-Nov & 22-Nov: Didn't trade because of Sensex expiry fall...

In this blog post, I will be talking about the various trading platforms I have used in past 3 years of Algo trading.  Tradetron Tradetron was the first platform which I started using in Jun' 21 which was the start of my algo trading journey. Coming to the advantages of the platform, it is a no code platform which means you have lot of flexibility in setting up the strategies in the way you want. Even without knowing coding you can set up the Tradetron to execute your trading logic.  This platform can be used to set up simple time based straddles, strangles as well as complex strategies e.g. legs with varying SL, varying entry/exit times etc. During my start of trading journey there were lot of strategies floating on YT which were using Super trend. Was able to automate them using this platform but found that their returns were not as good as advertised.  It even provides the logic for stock options trading which is not usually available on other trading platforms. Along ...

  Entry time : 0918 Instrument : Sell Bank Nifty monthly CE and PE option which is trading at a price greater than or equal to 10 at 0918 Please note both CE and PE should be sold e.g. if BN 37200 CE is trading at 11 and BN 33100 PE is trading at 12, I will sell BN 37200 CE (Weekly) and BN 33100 PE (Weekly) Stop-Loss : 9 points on both CE/PE leg Exit : 1520 Slippage : 0.5% Capital: 97,000 Note ( 30-Nov-24): After weekly expiries ended for Bank Nifty, strategy now trades the Bank Nifty monthly options Back Testing (Updated as of 31-Oct-24) Actual trade based profit/loss (Started trading from 9-Jan-24) Profit/Loss for Aug '24 Reason for high slippage b/w actual and back testing Historical Trades Jul 24 Jun 24 May 24 Apr 24 Note: I am not a SEBI registered advisor and sharing strategies for learning purpose only

Entry time : 0930 Exit time    : 1455 Day                : Sensex expiry day only Instrument:  Sensex Strike : Sell ATM CE & PE based on SPOT price and Buy OTM10 CE/PE as hedge Stop Loss: 50% for both ATM legs with adjust to cost i.e. if SL is hit for 1 leg then SL for other leg will be adjusted to its entry price. No SL for hedges (OTM10 CE/PE) Slippage : 0.5% Capital:  43k per lot Note (8-Jun-24): I am running this strategy from past month (May '24) without OTM10 hedges and results are more or less in line with back test.  May be this is more so as there were not many spikes in Sensex on expiry day in past 1 month. However in past there used to be spikes in Sensex index and there is a chance that because of that strategy wouldn't have given returns similar to what back test shows.  The absolute returns of this strategy are same in both hedged version and non hedged version. This is because on few days hedge...

Entry Time:  0916 Instrument : Sell 1 Lot  of OTM2 CE (ATM + 100) and  PE (ATM-100) of NIFTY based on spot price at 0916 MTM SL: 500 per lot Target:  1000 per lot  Exit Time:  1235 Slippage:  0.5% Capital Needed:  125k to 130k per CE + PE lot. Returns mentioned in back testing and actuals are based on 130k margin Back testing and actual trades report  ( Updated as of 10 May 24) Back testing results Actual Trades based profit/loss (Started trading from 26-Jun-23 Stopped trading from 9-Feb-24 Re-started trading from 1-Mar-24) Above profit doesn't include brokerage and other charges Daily trades for Apr 2024  Reason for days with high difference b/w actual and back testing (Positive/Negative): 2-Apr-24: In real trade MTM SL was hit whereas in BT target profit was hit 16-Apr-24:In real trade MTM SL was hit whereas in BT target profit was hit Historical Trades Mar 2024 Reason for days with high difference b/w actual and back testing (Positiv...

 In this post I will be talking about the bank nifty buying system based on range breakout. In case you don't have a background on range breakout buying system please refer to Stock Mock YT video @  Stock Range breakout Buy Now we will go direct to the system Instrument:  Bank Nifty CE and PE weekly option which is ATM option at 0930 Entry:  Enter in ATM CE or PE option whichever breaks high range between 0930 to 1100 after 1100 first. Only one entry will be taken E.g. say at 0930 ATM options are 47100 CE and PE. Now 47100 CE highest premium is 200 and lowest is 160 between 0930 to 11. In same 47100 PE highest premium is 180 and lowest is 140 between 0930 to 11. Now if 47100 CE goes above 200 after 1100 then it will be bought.  In case before 47100 CE goes above 200, 47100 PE goes above 180, then PE option will be bought. This is known as Range breakout strategy. Stop Loss -  75 points from the entry premium. E.g. if entry happened at premium of 200 then SL...