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created : 1 month ago| |  live deployment: 47

created : 1 month ago |  live deployment: 47

Chemical Burn  (474 subscribers)

16 ratings

Strategy description

INDEX OPTIONS STAT ARB STRATEGY


This strategy will take pair trade position in Nifty and BankNifty options based on my proprietary indicators and adjusts strikes dynamically to hedge gamma risk.


IMPORTANT:
The default position size for 1x multiplier is 1 lot. Keep in mind that smaller the quantity means your transactions costs will eat bigger portion of profits. Hence, we advise at least 2x multiplier. For serious players, 5x is recommended.

 

Capital Required will depend on the leverage provided by your broker. Assuming 10K per lot of Nifty & BankNifty options, required capital is 20K for 1x multiplier. Keep 15-20K MTM buffer also, so total 40K. Adjust the capital requirement and MTM buffer according to your broker leverage and risk-taking appetite.

Statistics

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