Too much risk in trading BankNifty or its options. Views welcome.

Trading BankNifty has its pros and cons but the way we apply our capital decides the final outcome. Those are of the views that we need high capital reserve may be that suits there mental preparation for the volatility bit it's not a necessity . The only things we require are the below point.
1) Have a strategy that's back tested on atleast 3 months of option data considering option delta and time decay.
2) The strategy should be atleast profitable in nett trading setup
3) Apply the strategy with compete faith and never wander into the allurement of jackpot scenarios or hope your bad position will reverse in the next hour or day.
4) Most important use only 25% of the capital and your strategy should try to make large profitable trades as scalping in option is very risky with huge probability of large drawdowns.

Similar threads