A bank nifty strategy with 3 straddle entries every day that diversifies the risk with a decent drawdown
Strategy Details:
Capital required | 6 Lakhs approx |
Time frame | Intraday |
Instrument | Bank Nifty |
Backtesting period | 3 years |
Backtesting platform | https://www.stockmock.in/ |
Slippage included | Inbuilt 0.5% |
Backtested Result Summary:
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Key points:
Avg Yearly Profit | 3,91,152/- (Approx) |
Avg Yearly Return | 65% |
Max Drawdown | 9% (Approx) |
Expectancy | 0.44 |
Return to MDD ratio | 7.08 |
Accuracy | 64% |
Strategy-wise stats:
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Monthly Breakup:
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Correlation and Equity curve:
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Strategy Parameters:
Instrument | Bank Nifty |
No. of daily entries | 3 (straddles) |
Entry timing | 9:50 AM – 10:50 AM – 11:50 AM |
Exit timing | 3:10 PM |
Stop loss for each leg | 25% |
Sample Entry:
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Implementation:
It’s quite easy to automate this entire strategy using our Trade Bots Web or Trade Bots Desktop. Trades happen at lighting fast with 0 effort and end to end trade life cycle will be taken care, from entry to exit.
Trade Bots (Web) Set up:
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Trade Bots (Desktop) Set up:
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Summary:
A simple 3 entry strategy without much complexity that has a diversification advantage. This decent bank nifty strategy has a less drawdown and less correlation (under 0.25) which makes this a safe one to trade. All key metrics look good when backtested on the last 3 years data.
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Hello Admin,
I am trying to understand ‘66% Avg. Yearly Return’. Could you please help me to understand the calculation behind it? Thank you in advance.
Hi Vicky, Total profit for 3 years is around 11.7 lakhs which means for 1 year it’s around 3.9L and on a capital of 6L, it’s 65%
However there was a typo “Avg yearly profit” field which we corrected now.
Thanks for letting us know.