An ultra-low drawdown strategy that gives a decent average yearly return by trading in bank nifty. Note that 0.5% inbuilt slippage is also included.
Strategy Details:
| Capital required | 6 Lakhs approx |
| Time frame | Intraday |
| Instrument | Bank Nifty |
| Backtesting period | 3 years (Jan 1, 2020 to Dec 31, 2022) |
| Slippage | 0.5% |
| Backtesting platform | https://www.stockmock.in/ |
Backtested Result Summary:
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Key points:
| Avg Yearly Profit | 1,92,800/- (Approx) |
| Avg Yearly Return | 32% |
| Max Drawdown | 1% (Approx) |
| Expectancy | 0.76 |
| Return to MDD ratio | 30.93 |
| Accuracy | 68% |
| Max loss | Rs.3234/- |
Monthly Breakup:
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Equity curve:
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Strategy Parameters:
| Instrument | Bank Nifty |
| No. of daily entries | 3 |
| Entry Strike | Closest Premium (80) |
| 1st Entry time | 09:50 AM |
| 2nd Entry time | 10:50 AM |
| 3rd Entry time | 11:50 AM |
| Exit time (All 3 strategies) | 3:10 PM |
| Stop loss for each leg | 25% |
Sample Entry:
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How to automate this strategy in Tradebots (Desktop)?
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- Login to Tradebots desktop version (WhatsApp us on 9398840360 to get free 7 day trial)
- Click on “Add Strategy” and a pop up will open as shown in the image
- First configure for 9:50 to 15:10 strategy – give entry time, exit time, SL and other parameters
- Make sure to check all days since this is a low drawdown strategy.
- Hit on “save” as shown in the image.
- Repeat same process to configure other 2 strategies as well – 10:50 and 11:50
That’s it. Every day this strategy will automatically gets executed after you login.
How to automate this strategy in Tradebots (web)?
click on the image to enlarge
- Login to Tradebots web version (WhatsApp us on 9398840360 to get free 7 day trial)
- Click on “Add New Strategy” and a pop up will open as shown in the image
- First configure for 9:50 to 15:10 strategy – give entry time, exit time, SL and other parameters
- Make sure to check all days since this is a low drawdown strategy.
- Hit on “Add” as shown in the image.
- Repeat same process to configure other 2 strategies as well – 10:50 and 11:50
Every day all 3 strategies get automatically executed after successful login.
Summary:
There are a few things that make this a good strategy.
- Low drawdown – This is an extremely low drawdown strategy that makes it safe to trade on all days.
- Since max loss is for this strategy is just 3234/- one can confidently trade even in case of continuous losses since they are minor.
- High MDD Ratio – This strategy has a very high MDD ratio of 30+ which mean the recovery from drawdown phase generally happens quickly.
- High expectancy – Even after deducting 0.5% inbuilt slippage, this strategy still has 0.76 expectancy which makes this one of the safest strategies.
In short, for those who are OK with low and decent returns, this strategy is something to consider since it is safe, slow and low-risk.
Want to see how to backtest this strategy in stockmock and automate in TradeBots tool?
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