A highly accurate (70%+) strategy that gives more than 35% average yearly return by just trading 3 hours per week. Note that 0.5% inbuilt slippage is also included.
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Strategy Details:
| Capital required | 5 Lakhs approx |
| Time frame | Intraday |
| Instrument | Bank Nifty |
| Backtesting period | 4 years |
| Slippage | 0.5% |
| Backtesting platform | https://www.stockmock.in/ |
Backtested Result Summary:
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Key points:
| Avg Yearly Profit | 1,85,000/- (Approx) |
| Avg Yearly Return | 37% |
| Max Drawdown | 4.10% (Approx) |
| Expectancy | 1.01 |
| Return to MDD ratio | 9.15 |
| Accuracy | 71% |
Monthly Breakup:
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Equity curve:
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Strategy Parameters:
| Instrument | Bank Nifty |
| No. of daily entries | 5 |
| Entry Strike | ATM |
| 1st Entry time | 12:20 PM |
| 2nd Entry time | 12:50 PM |
| 3rd Entry time | 01:20 PM |
| 4th Entry time | 01:50 PM |
| 5th Entry time | 2:20 PM |
| Above All Exit time | 3:26 PM |
| Stop loss for each leg | 100% |
Sample Entry:
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How to automate this strategy in Tradebots (Desktop)?
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- Login to Tradebots desktop version (WhatsApp us on 9398840360 to get free 7 day trial)
- Click on “Add Strategy” and a pop up will open as shown in the image
- First configure for 12:20 to 03:26 strategy – give entry time, exit time, SL and other parameters
- If hedging with deep OTM buy, then create another strategy just 1 min before the SELL strategy.
- Make sure to uncheck all other days except Thursday since this is expiry day strategy.
- Hit on “save” as shown in the image.
- Repeat same process to configure other 4 strategies as well – 12:50, 13:20, 13:50, 14:20,
That’s it. Every Thursday this strategy will automatically gets executed after you login.
How to automate this strategy in Tradebots (web)?
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- Login to Tradebots web version (WhatsApp us on 9398840360 to get free 7 day trial)
- Click on “Add New Strategy” and a pop up will open as shown in the image
- First configure for 12:20 to 15:26 strategy – give entry time, exit time, SL and other parameters
- If hedging with deep OTM buy, then create another strategy just 1 min before the SELL strategy.
- Make sure to uncheck all other days except Thursday since this is expiry day strategy.
- Hit on “Add” as shown in the image.
- Repeat same process to configure other 4 strategies as well – 12:50, 13:20, 13:50, 14:20
Every Thursday all 5 strategies get automatically executed after successful login.
Summary:
There are a few things that make this a good strategy.
- Drawdown – There is only 4% drawdown and that’s because entry is done during the last part of the expiry day. So the risk involved is lesser compared to other strategies.
- High Accuracy – This strategy has more than 70% accuracy which is extremely important to keep up the confidence.
- High expectancy – Even after deducting 0.5% inbuilt slippage, this strategy still has extremely healthy expectancy of 1.01 which makes this one of the best strategies.
- High return to MDD ratio – This strategy has 9.5 return to MDD ratio which makes it easy to recover in case of minor drawdowns.
Downside – One thing observed during the backtested results is that recent year performance hasn’t been up to the mark and that might be because of random market cycles and might get corrected automatically.
In short, for those who want to trade less and earn decent returns, this is one to consider since it is good from risk assessment perspective and also gives a decent 35%+ average returns per year.
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