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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