Hello Sunday traders,
This June has been a whirlwind of trading and tech adventures! I've been putting in a lot of effort on this project, and it's awesome to see that many of the 60 folks in our community are now using our algo-trading tool.
Our new flagship algo-trading strategy #options-fade-gap has new Sunday traders on their toes!
 Target Profit feature |  #options-fade-gap bot in action! |
Here are the things going into testing this week:
Real time m2m checks and triggers
Currently at Sunday, m2m checks happen once every minute.
Seeing how quickly prices converge when we’re algo-trading #options-fade-gap, I decided to give real time m2m checks and triggers a shot.
Prevent duplicate trades for same triggers
This Thursday, Sunday traders were sitting on 5x exposure when a particular Nifty trade arrived 5 back to back times. The trade went south and we lost gains of whole day.
Now, if there’s an active trade on a strike, more quantities will not be added to it. This will ensure same reward:risk per trade.
% based lock and trail profits
Now think just in percents. It was hard for me to think about a number to enter for lock creation. Each instrument has a different margin requirement, lot size, and thinking in percentages just makes it so much simpler.
With this change, I’m also deprecating the “Start lock at an absolute number” setting.
Add hedge to Delta neutral trade during first re-adjustment
With an objective to keep our worst case losses small, I’m now adding hedge to the side premiums are spiking. Because in this strategy, we roll up the winning leg, losses on losing leg can keep mounting during volatile up/down moves leading to big loss days
Note: creating an option buying leg reduces large losses on one directional trending days, but now our winners will be smaller during non-trending volatile days.
Happy Sunday!
— Aakash
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