Banknifty Option Algo

Option Zoom

Option trading is the most challenging when it comes to Buying Option without hedge position. We all know option buy can give us unlimited profit whereas option short can give us unlimited loss. However in intraday there is no unlimited profit or unlimited loss in any strategy. OptionZoom strategy is momentum based strategy, which is relatively high risk and High return based strategy with more than 45% winning ratio, with 15% system drawdown.

This Algo strategy is designed BANKNIFTY  as underlying for Options buy only trades. The trade setup is 3 Strike prices or 3 Lots per Trader, meaning on a trading day trade shall happen on 3 Strike prices of options. Trade can be in either Call or Put options on intraday basis based on Banknifty’s movements. In a day there shall be only one Call or one Put option trade, no multiple trade is planned in a day.

Our strategy have strict StopLoss and Target, with a risk reward ratio of 1:5, where StopLoss is 15% and Target is 75% of the Premium cost.

Daily Risk: Rs. 9,000/- is the maximum risk per day if trade goes wrong (Approximate).

Daily Reward: Rs. 20,000/- is the maximum profit per day if target hits (Approximate).

Return on Investment

Considering the price range of BANKNIFTY weekly options 1 Lot BANKNIFTY option of 25’s lot would cost approximate Rs. 12,000/- (Required Margin is Rs 40K). Initial investment is Rs. 70,000/- (with additional security of Rs. 30K). Average Monthly profit is Rs. 8,83,000/20 = Rs. 44,000/- . The average monthly return on investment  is (44,000/70,000 =) 60%, this is theoretical ROI.

After eliminating slippage cost let us consider  ROI as 30% Monthly.

Backtest
Results

Historical Data


2019 till 2020

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  1. Qtr Profit/Loss Table
  2. Month wise Profit/Loss
OptionZoom Monthly is developed on Amibroker AFL, here you can get the Amibroker Report's snapshot.

Fully
Automated

Who can use this Robo Product:

  • Working Professionals/Retired Senior Citizen’s
  • Businessmen/Businesswomen
  • Housewife
  • Investors & Traders

How it Works:

  • This  algo system generates auto signal based on BankNIFTY’s movement and places automatic orders based on the signals.

Investment Amount:

Investment is RS. 1,00,000/- (approximate) for 3 Lot of BANKNIFTY Options.

Initial investment for a trader is Rs. 70,000/-. Breakup is mentioned below.

 CategoryRequired fund
3 Lots MarginRs. 40,000/-
Additional Fund (Risk Management)
Rs. 30,000/-
Algo charge
Rs. 7,500/-
Robo Platform Charge
Rs. 3,300/-
Total Initial InvestmentRs. 80,800/-
Robo Trading Benefit
  1. No Human intervention while generating Buy or Sell
  2. No Human emotions involve while selecting Target or Stop Loss
  3. Order can be placed to a Broker terminal by an Algo System

Here is the Live trading video, this will help you to understand the execution lifecycle of our Strategy in Live market. 

Live Execution Demo
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