This is Banknifty Weekly Option Bull or Bear Spread strategy bot. It is a directional hedge bot. Where the BOT takes automatic Short (ATM) at the money option strike prices based on Banknifty's direction, and Buys far OTM strike price of the same option.
The strategy has ATR based Stoploss and Trailing StopLoss built-in as well as price based targets
Strategy:
The Bot is developed to follow the trend of Banknifty. It shorts ATM (At the money) option strike price based on Banknifty's direction and Buys far OTM (Out of the money) option strike prices as hedge. The strategy typically known as Bull and Bear spread.
If Banknifty generates Buy signal, then the Bot shall Short ATM Put option and also buys OTM Put option.
If Banknifty generates Short signal, then the bot shall Short ATM Call option and also buys OTM Call option.
This strategy can be automated with Aliceblue, Mastertrust and IIFL for now, as and when we integrate other brokers will update you all.
Margin:
The margin is approximately 30K. However we recommend to maintain 50K to continue to trade and to avoid any error in execution due to margin shortfall.
Target and SL Logic:
The strategy has a built in Target (Price based) and Stop Loss using ATR indicator. There is no trailing Stoploss. The strategy has limited profit and limited loss based on the premium price during entry.
Please ensure you maintain the required margin to avoid discontinuity during drawdown phase.
Disclaimer: The strategy used by this Algorithmic trading bot is based on live market data and does not indicative or guarantee similar returns. This trading bot may not perform as expected due to unforeseen market conditions, technical issues, or other factors. We do not guarantee any specific returns or outcomes, and you should be prepared to potentially lose all or a portion of your investment. We are not responsible for any losses incurred from using this Algorithmic trading bot, and you own full responsibility for your investment decisions.
Holding : Positional
Instrument : BANKNIFTY
Segment : FNO
Market Conditions : Trending
Capital Required : 28000
Daily Return : 0.00 - 0.00 %
Monthly Return : 0.00
Yearly Return : 0.00
Winning Probablity : 0.00
