We started www.squareoffbots.com fully automated trading platform in the year 2020, initially we started with bots like Golden Ratio futures bot, then 920 Bank Nifty short straddle bot and later added other bots to the platform. In this article, we will do a detailed analysis of every bot’s performance for the last three years.
Expiry Day Analysis:
We will what are the bots that did well in last three years on expiry days. Listed below table shows year wise profits of each of these bots on expiry days. Here’s the bots abbreviations
BSS — 920 BNF Short Straddle bot
NSS — 920 Nifty Short Straddle bot
MLB — Machine learning bot
BSSR — BNF Short Strangle bot
MSS — 1% BNF Short Straddle bot
MSSN — 1% Nifty Short Straddle bot
ATS — Auto Adjustment Short Strangle bot
The 920 BNF Short straddle bot did extremely well on expiry days in the year 2020, but the returns started diminishing on expiry days in the following years. However, 920 Nifty Short straddle seems to consistent with returns on expiry days every year. ML bot also seems to do well on expiry days. But BSSR was average on expiry days, the 1% Straddle did well on 2021, but returns were flat in the year 2022. ATS bot was only started recently, so data for other years was not available. From this table we can conclude that ML bot and Nifty Short Straddle bot returns were very consistent on expiry days for last three years.
The returns mentioned above are gross returns after slippages, we need to deduct 16% from gross returns to arrive with net returns figure. For example, for BSS — 920 Short straddle system, gross returns is 72k, charges will be around Rs.12k which is 16% of gross returns, so net returns after all cost is around Rs.60k on expiry days. Like wise we can follow the same for other bots and bots like Machine learning bot and Auto Adjustment Short strangle bot triggers more trades, so we need to consider at least 30% of gross returns to go for charges.
Average Profit on Expiry days:
Let’s look at the average profit from each of these bots on expiry days. The 920 BNF Short Straddle bot had highest average profit in the year 2020, mainly due to Corona pandemic Vix levels shot up and premiums went up, due to which profits were higher in 2020, but it started diminishing in the year 2021 and 2022. But 920 Nifty Short Straddle was consistent in profits and ML bot also had good average profit on expiry days. The rest of the bots were not that good, however ATS was comparatively better.
Yearly Performance Non Expiry Days:
Let’s see which bots did well during non expiry days. From the below table its evident that Golden Ratio bot tops the list with huge returns, mainly because GRB is a breakout trading system that makes big profits when market trends big time. Periods like 2020 was phenomenal for GRB and even year 2021 it made very good profits. But year 2022 was neither bad nor good, it ended with flat returns as the market went into low vix regime last year.
DBSS — BNF Directional bot did well in the year 2022 followed by BSSR (BNF Short strangle bot) Even Machine learning bot did well every year with consistent returns on non expiry days as well. This is the only bot that does well on all days. The 1% Straddle bot didn’t do well. But over the last three years, 920 Straddle bot did well with both Nifty and Bank Nifty on non expiry days.
Day Wise Performance:
Let’s see how day wise performance looks like for all bots. Machine learning bot did well consistently on all days, even BSSR — BNF Short Strangle also did well, but more than 80% of its profit came from Friday. Similarly DBSS — Directional BNF bot didn’t do well on Wednesday/Thursday but other days it did well. GRB made maximum profits on Monday and Wednesday. MSS, MSS and ATS overall profits on non expiry days were relatively lower.
Let’s check what are the bot which has higher average profit. GRB tops the list obviously since its a break trading system. With respect to option selling bot, Machine learning bot maintained consistent average returns. BSSR bot has highest average profit on Fridays. ATS average profit is less than Rs.100 on non expiry days, that’s why we recommend this bot only on expiry days. 920 short straddle bot has good average profit on Wednesday.
Bots like GRB Futures, Machine Learning bot and DBSS — Directional BNF are good to trade on all days. All these are directional in nature which triggers only one sided trade, either ce or pe.
920 Short Straddle bot were doing well, but last year it did not do well, however 920 Nifty did well compared to Bank Nifty.
On expiry days, 920 Nifty short straddle bot, Machine learning bot did well consistently every year. 1% BNF Straddle did well on 2021, but did not do well in year 2022. ATS were doing good but recent volatility affected it. However, we expect it to do well once volatility subsides.
Based on the above data, you can decide which bots to trade, combination of bots to trade on expiry days and non expiry days. Soon, we will create basket of strategies in the squareoff platform which would help users to execute multiple strategies that can control the risk and increase overall returns.