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Bank Nifty Expiry Day - OTM1 Strangle loopy loop

Instrument: Sell Bank Nifty OTM1 CE/PE i.e. ATM + 100 CE and ATM - 100 PE based on spot

Entry Day : Only on Expiry days

Entry Time: 1050 

Stop Loss - Both legs need to be squared off if underlying moves by 120 point in any direction

Re-entry - 5 times. Re-entry means a new OTM1 strangle will be opened when both legs are squared off for previous strangle because of underlying movement by 120 points. Re-entry should happen only before 3:00 PM as after 3 PM not much premiums are left for OTM1 options and if a big move comes it can give more losses than the premium received

Exit - Exit at 1515

MTM SL: 2000 1200 (New MTM SL after BN lot size change is 1200)

Capital Needed: 1,80,000 1,05,000 (Change in capital because of BN Lot size change)

Slippage considered: 0.5%

Strategy setup in Quantiply








Back testing (Updated as on 31-Oct-24)





Actuals 
(Started trading from 29-Sep-22)




Week wise PnL per lot for trades in Oct 2024




Reason for days with high slippage:


Historical Trades

Sep 2024




Aug 2024


Jul 2024


Jun 2024




May 2024


Apr 2024


Mar 2024


Feb 2024




Jan 2024


Dec 2023


Nov 2023


Oct 2023


Sep 2023


Aug 2023


Jul 2023


Jun 2023


May 2023



Reason for days with high slippage:

11-May-23: Didn't take a re-entry after 2:30 PM in actual trade. 

Apr 2023


Mar 2023




Feb 2023


Jan 2023


05-Jan-23, 19-Jan-23: As the condition check is at 1 minute interval the MTM SL was not hit in actual trade and strategy ended in profit

25-Jan-23: High slippage because of spikes at exit when MTM SL was hit



Dec 2022


Nov 2022



Reason for days with high slippage:

3-Nov-22: In actual trade there were no re-entries whereas in back testing there 4 re-entries. This happened because in Tradetron the condition check is at 1 minute instead of checking continuously 

Oct 2022



Sep 2022


Reason for days with high slippage:

29-Sep-22: Because of logical setup issue, only 2 re-entries were taken in actual trade as against 5 in back testing


Note: I am not SEBI registered advisor and strategies provided here are for learning purpose only

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