I run this mostly on Mon, Tue and Wed to adjust positions. Whenever the short strangle starts moving away from the centre 100 points, this algo starts adjusting.
It generally doesn't run solo but on existing positions to adjust them.
You would need to have capital of roughly 10 lots atleast....so even if you are using hedged setup you would need 10L capital...it's better to have 30L so that you can even adjust positions later.
Is this an intraday strategy or positional strategy? What is the first initial pivot point from where x points of move calculated to initiate the first trade of the survivor algo?
It's an adjustment strategy to maintain positions delta neutral. The starting point are a resistance and a support, or from where ever you want to start adjusting positions to neutralise the delta.
To start with think of things you want to do manually but it is cumbersome as you have to constantly keep a track of things. Then think of the algo to automate it. And then go ahead and automate it so that you can spend your time doing other things.
Do you run this algorithm on Thursday and Friday for next week's expiry ?
I run this mostly on Mon, Tue and Wed to adjust positions. Whenever the short strangle starts moving away from the centre 100 points, this algo starts adjusting.
It generally doesn't run solo but on existing positions to adjust them.
Thank you so much for sharing your knowldge.
Hi Bhushan, what's the minimum capital needed for this stratergy? I am just starting with fno trading to utilise pledge capital
You would need to have capital of roughly 10 lots atleast....so even if you are using hedged setup you would need 10L capital...it's better to have 30L so that you can even adjust positions later.
And how to unwind when index starts to go in reverse direction?Like entry any exit stratergy or based on SL only?
Try to adjust the positions using 3 tiered approach to adjust delta
1. Selling opposite type options they can be closer to ATM to adjust delta.
2. Doing martingale if extra margin is available. Only once
3. Convert itm position to straddle to take benefit of theta decay.
There can be more strategies depending on open position, margin available and days to expiry.
And how does it work when index is reversing? What actions to take in this case?
Same question as above.
And didn't find the code for this stratergy like I could see for gamma blast oi indication, could you please point, may be I'm missing something
How do you backtest? are you using pine script to trade it through tradingview to generate signals
This I did not backtest, I don't have a setup to backtest. But it would be great if someone can help me in doing so.
This is python code which runs, and as it does not use any signals it gets executed as per the movement in NIFTY or the underlying asset.
Hi bro, the logic is very good, maybe i can help you with the backtest the strategy, feel free to contact me at +919461030591 (Tushar Karwa)
Hi, can you share your X account will ping you there.
https://x.com/tusharkarwa22?s=21
This is my profile. Username is @Tusharkarwa22
Is this an intraday strategy or positional strategy? What is the first initial pivot point from where x points of move calculated to initiate the first trade of the survivor algo?
It's an adjustment strategy to maintain positions delta neutral. The starting point are a resistance and a support, or from where ever you want to start adjusting positions to neutralise the delta.
Let's say, you start the System at 9:30 on first trading day of new weekly series i.e. Friday, You carry these positions Overnight till expiry ?
Yes till wed, I don't trade on 0dte...
Am new to algos but it seems to take my interest and curiosity can u guide me on where to start?
To start with think of things you want to do manually but it is cumbersome as you have to constantly keep a track of things. Then think of the algo to automate it. And then go ahead and automate it so that you can spend your time doing other things.
Simple but a robust strategy, but can you dive deep on the logic of when and how the trades are exited when at loss or in profit?
Thanks for pointing out will be updating the article with these points in a few days.