Thread by @krishstocks

Intraday Short strangle (Momentum Catching)

All of us have Dream of achieving successful #trading in intraday

but most of of fails while catching the momentum in market

for that i came up with small and simple strategy for intraday
you can use it with 2 lakh capital or 20lakh

Strategy with #BankNiftyOptions

Wait till 10 Pm to trade

to avoid first 45 minutes nonsense moves in market

Then select 200 points Above call option strike and 200 points below Put option strike

Let’s say #Banknifty Trading at 38000

now select 38200 Call and 37800 Put

Sell Both #Options exactly at 10:00Am

Let’s say Premium is 250 on both sides

Place SL at 300 on both sides which is 20% on Premium

and Target shod be 40% on both sides

means target is 150 on downside

if it Didn’t hits neither Target or SL

Close everything at 2:45PM

Case 1

in this case one side SL will get Trigger on the other side target will hit

Once one side SL Triggered,

on the other side of the option will go down

then

move your SL to your Selling Price as Trailing SL. wait till target mets

if second SL triggers after Trailing don’t trade again

the trade is Done for The Day,

you made the loss for the day

Case 2:

If one side SL and other side Target hits

Then You made Profits for the day

Trade is done for the Day, don’t trade again.

Now I want say Something Here

Use 20% SL and 40% Targets Only on Friday and Monday because Premiums are Very High

Use 25% SL and 50% Target on Tuesday and Wednesday because premiums are Bit lesser compare

and Use 30% SL 50% Or more On Thursday may be One option becomes zero

I have done The Last 5 years Back testing Results for This Strategy
using 10 Lots
and not added Compounding
if we use Compounding every year
It's More than 1Cr with 15 Lakhs of Capital
Winning ratio was 60%
Loosing ratio was 40%