Hi,
I am new in options and i am doing paper trade straddle strategy(sell both ATM options on the day of previous expiry for next month.) for 4 months in bank nifty.
With this strategy i got 12% return per month. should i come down in market with this strategy. What are the probabilities of loss. Please help
Thanks in advance.
So so: You sell atm straddles and you win every time 12% per month and now you come here to ask about the probabilities of loss and if you should go to the real market
How did you arrive to this number and what is your MM and your adjustment strategy, even your execution strategy?
As you did your paper trades, then I am sure you will have no problem to do an other month with your paper trades and
let us known when and how you acted on your paper the moment you did and think you do, so that this can be included in any back test you ask for from the members here.
Well, paper is a good friend and never ask for any thing.