finally finally good people. I have found a way.
I have found a strategy which is fixed like nail on the wall in all market condition. Yet, its fluid because you are adjusting as things develop.
Its nothing new. Its called calendar spread or diagonal spread. May be I can call it Poor man's Delta neutral.
Minimum capital required: 70K
Underlying: BANKNIFTY
Broker: Zerodha
Platform: Kite
Expected returns: 2% above p.m.
Additional income: Brokerage returned because you won Zerodha 60 day challenge :clap:
Good thing is if you know what you are doing. You can afford to be stupid. You can be without discipline. No need to be harsh on yourself. We make mistakes because price action or that stupid indicator tricked us.
Rules are little different
1) Never allow a SL to be triggered until your profit is more than Rs 500. You heard it right, we will book profit on SL triggers too.
2) Never close a Sold order in Profit if its not half of its premium. If closing it means that there is another Sold order we are holding in profit and its to be converted to NRML from MIS
3) Never increase the diagonal spread to be more than 100 points. We will break this rule when we have earned enough profit and we are in the second week onwards. In order to reduce risk we may buy a 3rd weekly option as well, if spread is beyond 100 points.
Please check my diary for more details.