Anonymous Trader

Anonymous Trader



Alright as promised i'll be sharing one of my strategies from my arsenal! Sell 1 strike ITM CE & 1 strike ITM PE at 9:16. Put a SL of 40% on both side. Once 1 side SL is hit keep the other side open.

Also we will re enter the side in which SL was hit once it reaches at the cost again. We exit the strategy at 3:15. For E.g Lets assume Nifty is trading at 18000. We will sell 17900 CE and 18100 PE. Assuming both are trading at 100 each. SL becomes 140 on both sides.

Lets say market moves up and CE sl gets hit. We will continue to hold position on Put. We will sell CE again if it comes back to 100 again with a sl of 40%.

I am posting backtested results for the past 2 years. Lots sold:- 1 each Margin used with otm hedges:- 70K approx Platform used for backtesting: Algotest

I have used only 2 years of data because markets have changed over past few years. Also there seems to be some error in algotest's data. This is an aggressive *DIRECTIONAL* Strategy more like a tweaked version of 9:20 . Credits to @jitendrajain

I am a discretionary trader i tend to tweak and do changes according to market. Once this strategy's SL is hit i move onto other basket of strategies. Also i did not create this strategy. Many option sellers use similar strategy which fits to their psyche.

As you can see returns are more than 100% year on year. But, it's not that easy! You cannot scale this above a certain limit. Slippages tend to hit hard both at entry and exit. You get weird fills in case of a wild move. If you are starting with a small capital it's good to go!

Any constructive criticism is welcome and if you have anything better do share :) #stockmarket #sensex #optionselling #strategies

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