Short Strangle Algo Trading Strategy

The Short Strangle strategy by Supratim Sircar on Quantman is a simple yet effective strategy that can be used by traders to make a profit in the stock market. The strategy involves selling 3 lots of call options (CE) and put options (PE) that are out of the money (OTM) by 2 strikes away. This means that the trader is selling options that have a strike price that is 2 strikes away from the current market price of the stock.

The strategy has a stop loss (SL) on both legs of 20%. This means that if the market moves against the trader and the stock price moves 20% away from the strike price of the options, the trader will exit the trade. The take profit (TP) on both legs is set at 40%. This means that if the market moves in the trader's favor and the stock price moves 40% in their direction, the trader will exit the trade.

The strategy also has a trailing stop loss (TSL) on both legs. This means that if the market moves in the trader's favor and the stock price moves 12% in their direction, the trader will trail the stop loss by 8%. This means that the stop loss will be moved to a point 8% away from the current market price of the stock. This is done to ensure that the trader can lock in their profits while also protecting their downside.

The strategy also has a strategy stop loss of 40% and a strategy take profit of 80%. This means that if the market moves against the trader and the stock price moves 40% away from the strike price of the options, the trader will exit the trade. If the market moves in the trader's favor and the stock price moves 80% in their direction, the trader will exit the trade.

The strategy also has the option to move the stop loss to cost. This means that if one side of the trade is stopped out, the other side will be moved to the cost at which the trader entered the trade. This ensures that the trader does not lose money on both sides of the trade. This is done dynamically by Quantman if the market moves in the trader's favor.

The strategy is entered at 10:30 and exits at 12:30. This means that the trader will be in the trade for 2 hours. This is a short-term strategy that is designed to take advantage of short-term market movements. Overall, the Short Strangle strategy by Supratim Sircar on Quantman is a simple yet effective strategy that can be used by traders to make a profit in the stock market.

The strategy backtest can be found here:

https://www.quantman.in/runs/1548512

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