M Y A L G O M A T E
Shape Shape Shape Shape

Product Details

Straddle Strangle Auto Adjustment

Straddle Strangle Auto adjustment for options intraday setup

This strategy works on the Index Options Nifty and Bank Nifty.

Join this telegram channel to get updates on this product: https://t.me/MyalgomateSSAutoAdjustment
Or Search with the name ” MyalgomateSSAutoAdjustment”

Also, known as :
1. Short Straddle Adjustments
2. Rolling straddle strategy
3. Straddle adjustment algo

Clear

Strategy Details

Join this telegram channel to get updates on this product: https://t.me/MyalgomateSSAutoAdjustment Or Search with the name ” MyalgomateSSAutoAdjustment”
• There is no limitation on how many strangles/straddles you can create.
• You can also save day-wise configurations if you are running different strategies on different days.
• Paper trading functionality with PNL and order book generation.
• This tool can be used for selling/ buying options straddles/strangles with adjustments.
• You can create different straddles/ strangles to enter at different times.

Intraday or Positional:

  • Intraday

Strike Configuration:

For strike configuration, there are two modes available:

  1. Entry by ATM Points
  2. Entry by ATM Percent
  3. Entry by Closest Premium
  4. Entry by CP based on Straddle Premium

Entry by ATM Points:
Examples:

  1. Underlying Price: 35125, CE  ATM Points = 0, PE ATM Points = 0
    ATM Strike = 35100
    CE Strike selected = 35100
    PE Strike selected = 35100
  2. Underlying Price: 35125, CE  ATM Points = 100, PE ATM Points = 100
    ATM Strike = 35100
    CE Strike selected = 35100 + 200 = 35200
    PE Strike selected = 35100 – 200 – 35000
  3. Underlying Price: 35125, CE  ATM Points = -100, PE ATM Points = -100
    ATM Strike = 35100
    CE Strike selected = 35000
    PE Strike selected = 35200

Entry by ATM percent:
Examples:

  1. Underlying Price: 35125, CE  ATM %  = 0.5%, PE ATM % = 0.5%
    ATM Strike = 35100
    CE Strike selected = 35100 + (35100 * 0.5%) = 35300
    PE Strike selected = 35100 – (35100 * 0.5%) = 34900
  2. Underlying Price: 35125, CE  ATM %  = -0.5%, PE ATM % = -0.5%
    ATM Strike = 35100
    CE Strike selected = 35100 – (35100 * 0.5%) = 34900
    PE Strike selected = 35100 + (35100 * 0.5%) = 35300

Entry by ATM Closest Premium (CP):
Examples:

  • Closest Premium Price: 100, Type: “~”
    It will select the option contract nearest to the price of 100.
  • Closest Premium Price: 100, Type: “>=”
    It will select the option contract nearest and above price 100.
  • Closest Premium Price: 100, Type: “<=”
    It will select the option contract nearest and below price 100.

Entry by CP based on  Straddle Premium (SP):
Examples:

  • In this case, it will first check the combined premium of the ATM straddle.
  • If the ATM straddle is 500 and you have set the value to 70% of the ATM SP, then it will select options contract with the closest premium to 70% of 500 which is 350.
  • The closest premium selection “!”, “>=”, and “<=” also apply here.

Adjustment Logic:

  • You can set how many times it should make adjustments.
  • You can also specify stop adjustment time after which it will stop making adjustments.
  • Currently, there are two types of adjustment methods available.
    1. Underlying Move 
    2. Premium Comparison
    3. Individual Leg SL

Adjustments based on Underlying Move:

  • In this mode, it will adjust positions whenever underlying moves by the Points/ Percentage set by the user.
  • For example, if you have set the adjustment points = 100 and the index price is 17330 at the time of entry, then with every 100 points move in the index (like 17430, 17530 on the upper side and 17230, 17130), it will do the adjustment.
  • You can decide if you want to check the adjustment on LTP or candle closing. You can also set the time frame for candle closing basis adjustment.
  • You can also set how to adjust which is explained in the “How to Adjust?” section.

Adjustments based on Premium Comparison:

  • In this mode, it will compare the option prices of both options contracts and make adjustments. You can set this comparison on a Percentage or Point basis.
  • For example, if you have set the adjustment % to 100%, then when one option contract price increases more than 100% of the other option contract, it will adjust positions.
  • You can also set how to adjust which is explained in the “How to Adjust?” section.

Adjustments based on Individual Leg SL:

  • In this mode, it will adjust whenever the option premium increases by adjustment %.
  • For example,
    If CE sold at 150, PE sold at 130, Adjustment % = 50%
    then,
    Adjustment price for CE = 150 + (150 * 50%) = 225
    Adjustment price for PE = 130 + (130 * 50%) = 195
    So it will trigger adjustment when the CE price reaches 225 or the PE price reaches to 195.
  • You can also set how to adjust which is explained in the “How to Adjust?” section.
  • In this mode, if you set “How to Adjust?” to exit profit making leg, then it will re-calculate the adjustment price for the loss-making leg when adjustment triggers. In the above example, Say CE Price reaches 225 so it will exit the PE leg and re-enter a new PE. For CE, it will re-calculate the new adjustment price of CE with the LTP which will be near 225. So new adjustment price for CE will be 225 + (225 * 50%) = 337.5

How to Adjust?:

  • There are three modes given for adjustment.
    1. Shift whole Straddle/Strangle
    2. Exit Losing Leg
    3. Exit Profitable Leg

Shift Whole Straddle/Strangle:

  • In this method, when the adjustment conditions are triggered, it will exit the previous straddle/strangle and select the new straddle / strangle based on the contract selection logic set by you.

Exit Losing Leg:

  • In this method, when adjustment conditions are triggered, it will exit the loss-making leg and select a new option contract.
  • For selecting a new option contract, you have the following three options:
    1. Contract selection is based on the original method of strike selection
    2. Premium equal to the other leg option
    3. Premium % of the other leg option

Exit Profitable Leg:

  • In this method, when adjustment conditions are triggered, it will exit the Profit making leg and select a new option contract.
  • For selecting a new option contract, you have the following three options:
    1. Contract selection is based on the original method of strike selection
    2. Premium equal to the other leg option
    3. Premium % of the other leg option

Protect Profit:

There are three modes available to protect profits:

  • Lock Minimum Profit
  • Trail Profits
  • Lock & Trail Profits

Lock Minimum Profit:

Example:
If Profit Reaches = 10000
Lock Min Profit At = 5000

When your profit reaches 10000, it will lock the minimum profit at 5000. So when your MTM comes down to 5000, it will exit all positions.
This happens one time only.

Trail Profits:

Example:
Increase in Profit = 5000
Trail Min Profit by = 3000

Every 5000 increase in profit will trail your min profit by 3000.
When profit reaches 5000, min profit locked at 3000
When profit reaches 10000, min profit locked at 6000 and so on…

Lock & Trail Profits:

In this mode, first, it will lock the profit at Lock Min Profit value and then it will start trailing profits.

Example:
If Profit Reaches = 10000
Lock Min Profit At = 5000
Increase in Profit = 5000
Trail Min Profit by = 3000

When your profit reaches 10000, it will lock in profit at 5000
After that,
When your profit reaches 15000, min profit locked at   8000
When your profit reaches 20000, min profit locked at   11000 and so on…

Please note, when your profit comes down to lock profit level, it will start exiting positions. It doesn’t mean that you will get the exact profit as per your lock profit value.

Exit Conditions:

    • User exits position from software
    • Time-based exit
    • Global Max Profit / Global Max Loss
    • Strangle/Straddle level Max Profit/ Max Loss
    • Protect Profit

Configurable Parameters

• There is no limitation on how many strangles/straddles you can create.
• You can also save day-wise configurations if you are running different strategies on different days.
• Paper trading functionality with PNL and order book generation.

Global Configurable Parameters:
(These parameters are common for all the straddles/strangles taken by the user.)

  1. Expiry Date
  2. Global Max Profit
  3. Global Max Loss
  4. Entry Order Type ( Dropdown: MARKET / LIMIT )
  5. Product Type (Dropdown: MIS/NRML)
  6. Limit Buffer %
  7. Seconds to modify Limit order to market
  8. Protect Profit
    1. Lock Minimum Profit
    2. Trail Profits
    3. Lock & Trail Profits
  9. Execution Mode ( Paper Trade / Live Trade )

Configurable Parameters at Straddle/ Strangle level:
(These parameters can be configured separately for each straddles/strangles.)

  1. Alias Name
  2. Underlying (Nifty Spot, Bank nifty Spot, Nifty Future, Bank nifty Future)
  3. Entry Time
  4. Exit Time
  5. Entry Type
  6. No of lots
  7. Contract Selection Mode
    1. Entry by ATM Point
    2. Entry by ATM Percentage
    3. Entry by Closest Premium
    4. Entry by CP based on Straddle Premium
  8. Adjustment
    1. Adjustment Points
    2. Adjustment Type ( Dropdown : Candle / LTP )
    3. Timeframe
    4. Max Adjustments
  9. Strategy Max Profit
  10. Strategy Max Loss
  11. Protect Profit
    1. Lock Minimum Profit
    2. Trail Profits
    3. Lock & Trail Profits
  12. Square Off @ Exit Time?

Order Execution

Order Configuration:

  • Limit Orders
  • Limit Order Configuration :
    • Limit Buffer %
    • Seconds to modify
  • Product Type: MIS / NRML
  • It will be placing limit orders for entry and exit both. Price will be calculated as below example:
    Order Type = SELL
    LTP @ the time of placing order = 100
    Limit buffer % = 2%
    Seconds to modify order = 5
    It will place a sell limit order of 2% below the price which will be 98.
    If your order is not executed within 5 seconds it will modify to market.

You can tweak “Limit buffer %” and “Seconds to modify order” parameters as per your requirement to get the best results.

If the broker’s API fails for any reason while modifying the SL order to market after X seconds, then your position will be open without any SL. In this scenario, you will need to manage and exit manually.

Salient Features

Screens:

  1. Signal Window
  2. Options Leg
  3. Order Book
  4. Position Book
  5. Parameter Window
    • The Signal window shows the live signals generated and all different values like Entry Price, Target Price, SL Price, Quantity, etc. depending upon the strategy.
    • Order Book shows all the orders placed by the software.
    • Position Book shows the live MTM and open positions generated due to software.
    • Parameter Window displays all the parameters set by the user.

Some Other Functionalities:

  • User can save the configuration in case if he wants to trade the same configuration every day

Pre Requisites

Supported Broker:

  • Zerodha – Kite API ( Required API Subscription of Interactive )
  • IIFL – XTS Blaze
  • Angel Broking – Smart API
  • Finvasia – Shoonya
  • Sharekhan

Infrastructure :

  • Cloud Machine ( AWS Provides it for Free ) can be used in Windows / MAC System
  • If you opt for a Cloud machine, there is no other internet speed requirement or min computer requirement.
0
    0
    Your Cart
    Your cart is emptyReturn to Shop