When your capital is large enough ( for me 50L+)
These are issues that will reduce ROI in Options trading

1. higher slippages
2. broker errors
3. diversification among strategies
4. hedges to contral max VAR

Anything else you can think of ?

Feb Month Algo Summary
1. 50L Alpha expiry ( Conservative basket ) : +2% 🟢
2. Beta Expiry ( Aggresive basket ) : +3.3%🟢
3. 6L selling : +4%🟢
4. 10L Selling : +1%🟢
5. Cheetah Option buying : -13%🔴
6. Panther Option Buying - 14.5%🔴
7. Wolf Option buying ( Midcap + Sensex ) : +18%🟢
For details Whatsapp us : http://wa.link/c1jiln

Do you think each index behaves seperately and each index should have different Logics ?

Kuch bhi price action

March has Generally been the worst month of trading
March 2023 hit my highest Drawdown ( 6% )
Highest loss in a day 3% ( Leveraged 2x with hedges ) in finnifty due to over confidence
I was at lowest point in my trading life
August 2022 was also a brutal month for algo trading

Just a reminder that tough times pass !

4% a month
1 % a week
0.2% a day

That is 4 points In nifty
That is 15 points in Bnf
That is 20 points in sensex
That is 5 points in finnifty
That is 3 points in midcap

We really don't have to trade near Atm strike prices and target high premiums.
Higher premiums are subject to higher delta
So even in some pullback stoploss are bound to hit.

Most volatility is in morning and major decay starts after 12 .
We can focus on smaller premiums , higher stoplosses and afternoon time to capture these points.

Think about it.

#Learning

Let me give you an example.

Spot price 10,000
1. Midcap atm 10k ce 20 rs and 10k pe 20 rs
Time - 9:30
Market moves up 20 points in morning otm 1 ce from 15 rs goes up to 20 rs ( up 30% )

Pe on put side of 10k will not decay to 10 rs as it still has 6 hours still for expiry ( 50% decay will not happen in morning due to time value ) it will still trade at 15 16 rs ( down 20% from entry) if market again moves down 0.30% or even 0.2% in 1 candle the puts will again inflate to 20 rs -25 rs hitting move sl to cost or original sl

So case 1 in morning volatility Ce stoploss , pe stoploss both hit near Atm.

Case 2 :
Assume same situation happens at 1.30 pm
Spot 10k
Atm
Ce : 10 rs
Pe: 10 rs

Market moves up 0.2%
Otm 1 moves from 7 rs Ce goes 10 rs
10k Pe will now go from 10 to 4-5rs ( 50% decay as for expiry its only 2 hours left ) so to hit stoploss market has to move much more in case of Atm trading .

Case 3 : at 1:30
Trading 4 rs - 5rs options in midcap .

If market doesn't moves you make entire money
If market moves 1 direction you lose on side and make some breakeven money .

If market moves up and goes down you still be able to make money due to rentry ( eventually otm will have to go to 0 , so even if movement doesn't come rentry will trigger due to premiums decrease ) you still will be able to make money or lose some amount depending on situation.
In afternoon you can lose money not due to gamma , but due to M or W movement in small time which will trigger multiple stoplosses .

In all day expiry regime , its better to avoid ATMs and rather trade far otms to avoid getting caught In spikes or reversal
Remember we have 5 days expiry in a week . So our target should not be 1% in day rather control risk , to lose small and make small small money.

Why re execute strategies face a lot of slippages in live market ?

Ce 100 rs
Pe 100 rs

Backtest entry 100 stoploss 20% 120 rs
Live entry 99 stoploss 20% 119

Option price moved up stoploss
Case 1:
Stoploss hit at 9:34:52
Re execute *May* happen at 935 if price crossed 120
Backtest and live match in this case

Case 2
Reex may happen at 9:36 due to delay in order management system ( have faced it and talked to quantiply Technically)
Sometimes algo requires 5 to 8 sec in order to fetch exit price so it will be assume stoploss hit at 935 ( 8 sec delay ) and hence reexute your leg at 936 . Backtest will reex at 935 causing entry Price difference and stoploss difference .
This is technically not solvable as per quantiply in case of delay .

Case 3 : price reaches 119.9
Live reex hoga Backtest me rex time will change as price didn't touch 120 . If price crosses 120 at 10:30 then in backtest it will reexecute the leg at 10:30 .

So in live market re execute will not match if entry Price is not as same as backtest due to change in stoploss , backtest will change .

Is it only me or all traders have Finnifty Sensex and Midcap doing better than Nifty and Bnf .

My bnf has - returns in last 3 months .
Sensex has highest.
I'm worried that as these are not mature indexes hence the returns are better ?
Your views ?

What was your March % gains ?
Profit or loss ?

Beginners guide, to options Trading

1. Refer free Strategy from my Youtube Channel :
https://www.youtube.com/@TechnoChartss/videos
2. Backtest on Stockmock https://bit.ly/StockmockBacktest
3. Execute on Quantiply
https://bit.ly/AlgoTradingApp
4. Journal on Excel : https://bit.ly/AdvanceTradingJournal

https://x.com/JayneshKasliwal/status/1774041354194067646?s=20

Introduction to Algo Trading Terms

Strating the Algo Trading mentorship from today
focussed on Option selling
For.payment and course content :
https://bit.ly/WebinarAlgotrading

The best part about my system is Risk Management
Not losing more than 1% in any day
In the last 6 months never breached more than 1.5% DD in Option Selling and Not lost more than .9% in any day !
Worst case Scene All my baskets will be making 25-30% A year with these stats easiliy
#Survival

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Fucked Up in Sensex

overall managed to close in green even after facing insane slippages