This is Banknifty Future based strategy Trend following. Where the BOT takes automatic Buy or Short position on Banknifty Future and simultaneously takes a option Call or PUT Buy OTM option. This strategy can be automated with three Brokers i.e. Aliceblue, Mastertrust and IIFL for now, as and when we integrate other brokers will update you all.
The strategy has StopLoss and Trailing StopLoss built-in
The strategy is developed to follow the trend of BANKNIFTY, it Buys Banknifty future if the trend is upward, and it shorts Banknifty Future when the trend is downward. The entry and exit is completely automated and no action is required from the trader's end.
This strategy can be automated with Aliceblue, Mastertrust and IIFL for now, as and when we integrate other brokers will update you all.
To avoid huge Margin of trading on Banknifty Future, first the BOT buys Call or Put OTM option to minimize the overall Margin, and then Buys or Shorts Banknifty Future.
Target and SL Logic:
The strategy has a built in Target and Stop Loss. The target is 2.5% and Stop Loss is 0.4%. It also has a Trailing SL inbuilt which helps in locking partial profit during trend reversal. Generally daily drawdown due to Stop Loss ranges between Rs 3,500 to Rs 2,800, Trailing SL can vary from positive to negative as well.