This is an initiative by DECIBEL CAPITAL that aims to identify and trade "High Probability - Low Frequency" signals in Nifty and BankNifty index.
These short-term signals may arise due to several imbalances in the market. From momentum to mean-reversion, there is no fixed rationale behind a particular signal. However, these signals are backed by data and undergo robust testing before being brought to live environment.
These signals present themselves on a sporadic basis, but with a higher than average win rate. The trades arising from these patterns are expected to have short holding periods (2-6 market hours) and are thus akin to "Quick Singles" in a Cricket match. The idea is to benefit from these DATA-DRIVEN signals, which may be hard to explain with an intuition behind them.
Jim Simons, in the book "The Man Who Solved the Market", mentions that Edge is important - not the story why it exists. While his expertise is way beyond our capacity, we intend to follow a similar approach for this strategy.
"I don't know why the planets orbit the sun. That doesn't mean I can't predict them"
- Jim Simons (Pg. 151)
Currently, the strategy is being created with ONE such signal to enable forward testing. However, as our research grows/continues, we will add more robust signals to it. The current signal is expected to have on average 2-4 trades on each index on a Monthly basis.
These signals are going to be executed using Buy Options execution. This choice of instrument offers two benefits:
a. It allows max loss being defined at the start of the trade and thus no additional SL is needed.
b. It allows a lower point of entry into the system to trade, while offering a diversified income stream to investors.
The strategy will buy ATM Calls and Puts at the time of signal generation. It will buy 2 Lots of Options for each signal (and thus positions have a Delta of 1 at initiation) per trade for the given capital requirement at 1x. Since the holding period is small, it is expected that that performance will be similar to that of futures.
This strategy does not close positions Intraday. It will carry them overnight.
Please Note, the backtest of the strategy is on index data. The signals can be executed both using Futures or Options.
This strategy aims to put to use the extra capital that we keep as a buffer for our Principal Trend Following Method - DYNAMIC. Since Quick Singles trades sporadically, it is not fit as a standalone strategy. However, the idle capital can be used for these high probability quick trades to generate additional returns at limited additional risk.
Click Here to learn more about DYNAMIC - Trend Following System
Back Testing + LIVE - No Compounding - Constant Position Size Results
Date of Inclusion in Quick Singles: 10-Mar-21
Backtest Time Period: Jan'15 to Feb'21
Capital Deployed: 400,000
Costs: 0.03% of turnover for slippage and commission on Nifty and 0.06% on BankNifty
LIVE Performance Metrics - Post Costs
This algo can be LIVE Traded on your account by clicking on the following link. It trades ATM Weekly Options on Nifty and BankNifty.
Also includes LIVE Telegram Alerts as part of Subscription. Please email firstname.lastname@example.org to activate after subscribing using below button.
ONLY TELEGRAM ALERTS - Quarterly
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Subscribe only to LIVE Telegram Alerts for manual trading. This does not include any automated trading. You can deploy whatever capital you wish on this plan.
A consistent options buying strategy that gets on the right side of the break out. The strategy almost always catches the ride just in time. The strategy almost always catches the ride just in time. I am one of the early subscribers and would say never had a panic situation due to the good execution and impeccable support.
I have been using Quick Singles strategy for quite some time and it is kind of unique offering that I had come across and it is working out for me. The best part is below 1. The live alerts in telegram in which I can monitor the strategy , in case of any issues just in case .This is very very important for me as I don't want to caught up in execution issues . 2. Ankit is very responsive for all the messages regarding the deployed strategies . 3. I use this strategy mixed with other non direction strategy which is giving me a good mix of returns vs drawdowns.
QS is by far the best directional option buying strategy I have come across on Tradetron. Most of the time I take clue form its signals for my own discretionary trading. Handholding by the creator (Ankit) is unmatched and telegram signals helps you to manage your trade when TT or broker has some issues.
Disclaimer: As with anything in trading, there is no guarantee that such signals will continue to present themselves profitably in future. Statistical patterns from past may deteriorate in future. Past performance is not indicative of future performance. Nonetheless, we keep a track of the performance of each signal and will replace/improve them with time based on their performance.