Algo Trading in India |
  • April 7, 2020
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It is a directional intraday option selling strategy with defined risk specifically designed for Nifty index. Based on multi year historical options chain data of Nifty, we created this option selling strategy which triggers only one trade in a day when market opens. 

The strategy used End of the day of options chain which includes, Open interest, Change in open interest, volatility and price. Our inbuilt algorithm scans the data and interprets if the market is bullish or bearish. If the outcome is bearish, it automatically short the call option with defined risk and if the outcome of data analysis is bullish, it shorts the put option when the market opens. 

Since each trade is associated with defined stop loss, if our view goes wrong, the stop loss gets hit and we are out of the trade, hence even if there is any big trending move against us will not create a big dent in the capital, since the fully automated bot will exit our positions when it goes against us. Since there will be only one trade per day, the transaction cost associated with this strategy is just Rs.20 per trade which greatly increases our over all profitability. When position goes in favor, the bot rides the trend and exit the position by end of the day.

The strategy has generated consistent returns over the last three years. If you trade 1 lot with 1 lac capital, it can generate around 3% returns per month, if you are okay with higher risk, and trade with only Rs.50000 for one lot, then your returns per month increases to 6% per month.

Lower the capital you trade with, higher the returns and the risk also increases. More than 70% of the time, it ends up in profits on monthly time frame. 

Currently, we provide one week free trial for this bot for all users who have opened account with Aliceblue using squareoff partner link

Once trial is over, users can subscribe to it using the below link.

If you liked this article, please do share share it (WhatsappTwitter) with other Traders/Investors. 

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