Nifty momentum Buy

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 1 lot should be around 28 K. I have kept the capital as 50k for my calculations

Slippage considered: 0.5%

Quantiply Setup

BACK TESTING 

(Updated as of 28-Feb-25)

Actual trades based profit/Loss

(Started trading from 22-Jul-24)

I am not a SEBI registered advisor and system as explained here are only for learning purposes.