A combination of Nifty and bank nifty strategy based on closest premium entry that gives around 55% average yearly return with a minimal drawdown of 6%

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Strategy Details:

Capital required	3.5 Lakhs approx (2L for BN and 1.5L for Nifty)
Time frame	Intraday
Instrument	Nifty and Bank Nifty
Backtesting period	3.4 years
Slippage	0.5%
Backtesting platform	https://www.stockmock.in/

Backtested Result Summary:

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Key points:

Avg Yearly Profit	193000/- (Approx)
Avg Yearly Return	55%
Max Drawdown	6% (Approx)
Expectancy	0.51
Return to MDD ratio	9.51
Accuracy	64%

Monthly Breakup:

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Equity curve:

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Strategy Parameters:

Instrument	Nifty and Bank Nifty
No. of daily entries	1 (Nifty and BN)
Entry Strike (Bank Nifty)	Closest Premium 100
Entry Strike (Nifty)	Closest Premium 50
Entry time	10:50 AM
Exit time	15:10 PM
Stop loss for each leg (Non-expiry days)	25%
Stop loss for each leg (Expiry day)	100%

Sample Entry:

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How to automate this strategy in Tradebots (Desktop)?

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1. Login to Tradebots desktop version (WhatsApp us on 9398840360 to get free 7 day trial)
2. Click on “Add Strategy” and a pop up will open as shown in the image
3. Firstly Configure for Non-Expiry day Nifty strategy – give entry time, exit time, SL and other parameters – entry time 10:50, exit time – 15:10, SL – 25%
4. Hit on “save” as shown in the image.
5. Repeat same process to configure for Non- Expiry day Bank Nifty Strategy as well
6. Now configure for Expiry day Strategy for both Nifty and Bank Nifty – with same entry and exit time and SL value -100%

That’s it. This strategy will automatically gets executed after you login.

How to automate this strategy in Tradebots (web)?

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1. Login to Tradebots web version (WhatsApp us on 9398840360 to get free 7 day trial)
2. Click on “Add Strategy” and a pop up will open as shown in the image
3. Firstly Configure for Non-Expiry day Nifty strategy – give entry time, exit time, SL and other parameters – entry time 10:50, exit time – 15:10, SL – 25%
4. Hit on “save” as shown in the image.
5. Repeat same process to configure for Non- Expiry day Bank Nifty Strategy as well
6. Now configure for Expiry day Strategy for both Nifty and Bank Nifty – with same entry and exit time and SL value -100%

Everyday all strategies get automatically executed after successful login.

Summary:

There are a few things that make this a good strategy.

1. Combined Strategy – Since this strategy is a combination of Nifty and Bank Nifty, it’s comparatively safer than trading in only instrument. At times, one index might come to rescue while other fails.
2. Decent Drawdown: The backtested drawdown of this strategy is just around 6% which is reasonable considering its consistency in terms of monthly profit
3. Avg. Yearly Profits – This strategy has given an average yearly profit of around 55% (after slippage of 0.5%) which is extremely good if trend continues in future.
4. Good return to MDD – Return to MDD ratio is above 9 which means the risk part of this strategy when compared to yearly returns is decent.

Those who do not want to put entire capital in one instrument can consider this strategy for a bit diversification and can also change a few more parameters like SL, entry-exit times etc. to make it more lucrative.

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