Strategy description

Strategy Pet Name:  Jazz

Instruments Traded: Current Week Options Contracts of Nifty & BankNifty Index  (both long and short positions might be taken)

Trading timeframe : Overnight holding only. Enters trades before market close, exits after market opens by 9.30.

Trading Style : Passive. Very less trades. Can be used to take advantage of unused overnight capital

Minimum Capital Required – 1.5 Lakhs 

Strategy Background:  This trading strategy aims to take advantage of overnight trends and volatility decrease to generate alpha. It tries to identify the direction of the short term overnight trend and takes options positions in the underlying indices futures. This is an overnight strategy and carries overs positions - all positions are squared off on or before 9.30 the following morning. This is a passive strategy and does not trade much.

This strategy can go through significant drawdown periods ( -15% to -20% of invested amounts) and might continue to be underwater for as long as 1 month under certain circumstances. 

User's responsibility: User is strongly advised to use a 0 brokerage broker for implementing this strategy, as brokerage costs can eat into your profits significantly. While choosing a broker user should research properly to make sure broker API is reliable with least execution issues. DO NOT use intraday strategies like this without a zero brokerage account.

Disclaimer:  I am not a SEBI registered investment advisor. Please note that neither any suggestion or solicitation is being made about investing in this strategy. This strategy trades derivative instruments and are inherently risky. If you subscribe and/or invest in this strategy you are doing so entirely at your own responsibility and risk. Kindly read through risk associated with derivative strategies published by SEBI.