We have already launched Bank Nifty short straddle bot and its been running successfully since last six months. With Short straddle, we are shorting ATM options, but with Short strangle bot we will short 200 points away OTM options with 25% stop loss parameter, no targets.
We short one lot of ATM+200 points, ATM-200 points options strike at 9:30 am every day with 25% stop loss on each leg, we will choose weekly expiry not monthly expiry as the decay is more with weekly options.
For example, if we short ATM CE options at Rs.100, then our stop loss is 125, when that is hit we exit CE, if not we exit by EOD only. Please note that we exit only the strike that hits the stop loss, not both legs.
The drawdown with short strangle is comparatively minimal than short straddle, since premium is lesser with OTM options. Traders who are already trading Short straddle are already making profits, by trading strangle along with it, their option strikes are diversified with ATM and OTM options, which helps in additional premium decays hence more profits. Recommended capital to trade one lot is 3 Lacs.
The live profits of Short strangle bot can be checked here http://performance.squareoffbots.com/
BNF Strangle is one of the top performing bots that really does very well on Fridays compared to all other days. Even this year when many strategies were struggling, BNF Strangle consistently made good returns month after month, here’s the monthly profit/loss of this bot.
25 comments on “Bank Nifty Short Strangle Intraday Trading Bot”
Have you considered slippage if yes than what %age?
As mentioned in the article above, its gross results. You can use stockmock platform and add in your slippages as per your desired levels to know the net results.
There is a flaw with your data in short straddle double top strategy. You said 75% only 1 side sl hit. For example we short both ce at 400 and pe at ,400. If pe sl hits 500 then ce would be around 330-340 right? So if we short ce around 330 now as per your double top so noe 25% sl would be close to 400 and not the intial 500 as sl. You following this through your algo for subscribers? If yes m your next client. You have backtested/ forward tested data of this?
Yes, this is exactly what we have explained in our video as well.
P/L shows here are Mark to Market or (broker+STT+Tax) adjusted?
These are intraday trades where positions are closed on the same day.
Hi, Do you have backtest report for the short straddle double top strategy ?
P/L shows here are Gross or (broker+STT+Tax) adjusted?
Its just one trade per day, after slippages and before charges
Hi, In your live performance data why trade is not taken on some days in this strategy?
This bot is recently introduced. Strangle bot is live only from March 1st 2021
Can I adjust bots, for example I want to do shot straddle on tue,wed & thu and Fri & mon I want to do short strangle or I want to change SL
You can do that with optionx.in
If want to sell ATM -500 & ATM +500 strike with hedges can I do it?
You can do that with optionx.in but customization is not available with https://squareoffbots.com/
What time of the day is the position squared?
By EOD 3:10 pm
What are the charges to use bots
we provide a 7 days free trial followed by a yearly charge of Rs.15000 to access any one of the trading bot mentioned here https://squareoff.in/tradingbots/, however we provide access to 15 different trading strategy bots at discounted rate of Rs.25000 per year.
Respected Sir how much capital should be needed for 1 lot bank nifty straddle to manage drawdown???
3 lacs per lot is recommended
How is this strategy performing in the volatile conditions of 2022?
Its doing well, made 22% returns. You can check live performance here https://performance.squareoffbots.com/bssr
if a 25% stop loss is hit and one leg(CE) gets exit and other leg(PE) still opens right, in that case what happens if other leg(PE) also hits stop loss? does that mean you will square of both legs? can you able to provide more details around this?
Yes, stop loss is on individual leg when its we exit that leg