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Product Details

Time Based Options Straddle / Options Strangle (Basic)

Time Based Options straddle / Options strangle “Basic”

Stock Mock strategies can be automated using this Algo Trading tool.

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

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Also, known as:
Short Straddle / long Straddle Algotrading Software
straddle strategy or options straddle trading strategy

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Strategy Details

• 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 time-based.
• You can create different straddles/ strangles to enter at different times.

Check out the COMPARISON tab to know the difference between BASIC, ADVANCE, and PRO.

Intraday or Positional:

  • Intraday

Strike Selection Logic:

Underlying Price
Strike Out
ATM strike
CE strike
PE strike
15880
0
15900
15900
15900
15880
100
15900
16000
15800
15880
-100
15900
15800
16000
  • At Entry Time, it will fetch the price of the underlying and select the ATM/OTM options contracts. If the user has set the entry type to sell, then it will sell both the options contracts exactly at the entry time.
  • Based on the entry price of each leg, it will place SL orders based on the SL % / SL points set by the user. Please note, SL is placed on each leg immediately once the entry is done.
  • When the trail to cost flag is enabled, if anyone leg SL hits, it will trail the SL of the other leg to entry price (if the SL price is above entry price).
  • At exit time, it will modify the SL orders to market to exit the position. If the exit time flag is unchecked, it will keep the position open and you will need to manage them manually.

Configuration with some Examples:

Scenario 1:

Entry Time: 09:20
Strike Out : 0 (Zero)
Osbb Example Nifty0920 Sell

Scenario 2:

Entry Time: 09:25
Strike Out: 100

Osbb Example Nifty0925 Sell

Scenario 3:

Entry Time: 10:30
Strike Out: 100

Osbb Example Nifty1030 Sell

 

Exit Conditions:

  • Individual Leg SL
  • User exits position from software
  • Time-based exit
  • Global Max Profit / Global Max Loss

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. Product Type (Selection: MIS, NRML)
  5. Limit Buffer %
  6. Seconds to modify Limit order to market
  7. Execution Mode ( Paper Trade / Live Trade )

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

  1. Underlying (Nifty Spot, Bank nifty Spot, Nifty Future, Bank nifty Future)
  2. Expiry Date (Dropdown)
  3. Entry Time
  4. Exit Time
  5. Entry Type
  6. No of lots
  7. Strike Out
  8. SL % or SL points
  9. Trailing X % or Trailing X Points
  10. Trailing Y % or Trailing Y Points
  11. Move SL to cost
  12. Square Off @ Exit Time?

Trailing Logic

We do not modify the SL price in the broker when trailing happens. It will store the trail SL price in the software and continuously monitor if the trailing SL is hit. Whenever trailing SL is hit, it will modify the SL order to market to exit. Please note, the initial SL is placed in the broker just the trailing happens in the software.

Example 1: Equal distance trailing

Entry Type = Buy

For trailing, if LTP = 100, Initial SL % = 10% Trailing  X% = 5%, and Trailing Y% = 5%, then it will trail like following:

  • Trail X Points = 100 * 5% = 5
  • Trail Y Points = 100 * 5% = 5
  • Initial SL = 100 – (100*10%) = 90
  • When LTP reaches 105, it will trail the SL to 95.
  • When LTP reaches 110, it will trail the SL to 100.
  • When LTP reaches 115, it will trail the SL to 105. And so on…

Entry Type = Sell

For trailing, if LTP = 100, Initial SL % = 10% Trailing X% = 5%, and Trailing Y% = 5%, then it will trail like following:

Trail X Points = 100 * 5% = 5
Trail Y Points = 100 * 5% = 5
Initial SL = 100 + (100*10%) = 110
When LTP reaches 95, it will trail the SL to 105.
When LTP reaches 90, it will trail the SL to 100.
When LTP reaches 85, it will trail the SL to 95. And so on…

Example 2: Unequal distance trailing

Entry Type = Buy

For trailing, if LTP = 100, Initial SL % = 10% Trailing  X% = 5%, and Trailing Y% = 3%, then it will trail like following:

  • Trail X Points = 100 * 5% = 5
  • Trail Y Points = 100 * 3% = 3
  • Initial SL = 100 – (100*10%) = 90
  • When LTP reaches 105, it will trail the SL to 93.
  • When LTP reaches 110, it will trail the SL to 96.
  • When LTP reaches 115, it will trail the SL to 99. And so on…

Entry Type = Sell

For trailing, if LTP = 100, Initial SL % = 10% Trailing  X% = 5%, and Trailing Y% = 3%, then it will trail like following:

Trail X Points = 100 * 5% = 5
Trail Y Points = 100 * 3% = 3
Initial SL = 100 + (100*10%) = 110
When LTP reaches 95, it will trail the SL to 107.
When LTP reaches 90, it will trail the SL to 104.
When LTP reaches 85, it will trail the SL to 101. And so on…

Note on Trailing:

  • For X and Y parameters based trailing, it will not modify the SL price in the kite when trailing because of limitations on no order modifications.
  • For the Trail to cost feature, it will modify the SL price in the kite as it happens once only.
  • Trailing will always happen in the direction of the trade.

Order Execution

Order Configuration:

  • Entry Ordet Type- Limit Order
  • Stoploss Order Type – SL (Applicable for Individual Leg SL only)
  • Limit Order Configuration :
    • Limit Buffer %
    • Seconds to modify
  • Product Type : MIS / NRML

Entry Order:

  • For entry order, it will be placing a Limit order. Price will be calculated as below example:
  • Entry Type = SELL
    LTP @ the time of placing order = 100
    Limit buffer % = 2%
    Seconds to modify order = 5
    It will place a sell limit order with 2% below the price which will be 98.
    If your order is not executed within 5 seconds it will modify to market.

SL Order:

  • For the SL order, it will be placing a Stoploss Limit order. Price will be calculated as below example:
  • Entry Type = Buy, Exit Type= Sell
    SL Price = 100
    Limit buffer % = 2%
    Seconds to modify order = 5
    It will place an SL buy order with trigger price = 100 and limit price = 102.
    So in this case your SL order may get filled anywhere between 100-102 with the best available price.
    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 due to any reason while modifying the SL order to market after X seconds, then your position will be open without any SL. In this type of 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 you 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.

FAQ's

Que 1. What if I don’t want the trailing stop loss? OR How to use fixed stop loss without trailing them as 0,0 are not acceptable values for X% and Y%

Ans: Keep the value of X% very high.

 

Que 2. Can I take entries into straddle/strangle at different times?

Ans: Yes, you can enter multiple times with different entry times and there are no limitations on how many times you want to take entry.

 

Que 4. Can I keep SL on the individual leg?

Ans: Yes.

 

Que 5. Can I keep combined SL on the premium of straddle/strangle?

Ans: This feature is available with the advanced version.

 

Que 6. Can I change max profit and max loss after entry of position?

Ans: Yes.

 

Que 7. Can I login into my Zerodha Kite account while algo is running?

Ans: Yes.

Comparison

Comparison Of Basic Advance And Pro 07 06 2022

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