Options Strategy Builder : Parameters Walk Through

Strategy Description:

This Options strategy builder lets users build multi-leg options trading strategies. All kinds of options spreads strategies can be built using this tool.

Features 

Here is a documentation of all the features provided in the strategy builder :

Instrument :  Select the instrument BANK NIFTY,NIFTY or FINNIFTY instrument.

Options : Select Option Type CE or PE.

Buy/Sell : Select BUY for option buyingand SELL for Option selling.

Select Expiry : Select the expiry of the leg from the dropdown.

Strike Selection : There are four methods available for strike selection.

  1. Strike distance based : Select the strike on the basis of distance from Spot. ATM will select At The Money Strike, ITM_1 will select the first In The Money Strike and so on.
  2. Closest Premium : This method will select the strike closest to the premium specified.
  3. Less Than Premium : This method will select the strike closest but less than the premium specified.
  4. Greater Than Premium : This method will select the strike closest but more than the premium specified.

Once this is done Click on Add leg button to add the specified leg in the strategy.

Now once the leg is added there are other optional parameters which can be specified.

Group Entry : If you add 2 legs in your strategy and select group entry then if any one leg condition meets then execute both legs. If you do not select then when conditions meet each leg then execute.

Group Exit :  If you add 2 legs in your strategy and select group Exit then if any  one leg condition meets then execute both legs.

Target : By default, it is set to No target. Target, if required can be specified on basis of :

  1. Spot Points
  2. Spot Percentage
  3. Premium Points
  4. Premium Percentage

Stop Loss: By default, it is set to No SL. Stop Loss, if required can be specified on basis of : 

  1. Spot Points
  2. Spot Percentage
  3. Premium Points
  4. Premium Percentage

Start & End Time : Input start time for entry of leg and end time for exit of leg in 24 hour format.  

Wait and Trade : After your entry time the leg will wait for premium to increase/ decrease by specific percent/points to take the entry.
Re-Entry / Re-Execute : This will activate the Re-Entry/Re-Execute opportunity in entry legs.

  1. Re-entry : Enters the strike initially selected when re-entry condition is met.
  2. Re-execute : Selects a new strike on the basis of specified conditions and enters the same when re-execute conditions are met.
  3. Re-entry/ Re-execute trigger needs to be selected from the following options.
    1. Re-entry on SL.
    2. Re-entry on Target.
    3. Re-entry on Target and SL.
    4. Re-execute on SL.
    5. Re-execute on Target.
    6. Re-execute on Target and  SL.
  4. Once selected, the number of re-entries, re-executes need to be specified.

Press the button to copy the leg and delete button to delete the added leg. Once all legs required in the strategy are added, Strategy settings can be specified

Strategy Settings : 

Strategy exit based on MTM (Mark to Market)  : 

If selected, MTM based Target, MTM based SL and MTM based Trailing SL can be specified.

  • MTM Target : Select MTM Target between Percentage or Points. When MTM Target hits, the algo will immediately exit all open positions.
  • MTM stop loss : Select MTM Stop loss between Percentage or Stop Loss. When MTM Stop loss hits, the algo will immediately exit all open positions.
  • MTM Trailing SL : If this is turned on, three fields will Open.
  • If MTM Profit Reaches (X) :​ This is the MTM at which MTM trailing will start.
  • If MTM Profit Increase  ​: Specify the steps at which trailing should happen.
  • Then Move MTM SL By ​: Specify the steps by which trailing should happen at every Y increase in Profit. 

Strategy Exit based on Total Premium : 

  1. Total Premium Increased by : Strategy will be exited if total premium increases by  this amount.
  2. Total Premium Decrease by : Strategy will be exited if total premium decreases by this amount.
  3. Re-Execute after exit : Selects a new strike on the basis of specified conditions and enters the same when Strategy is exited on basis on premium.
  4. Quantity Multiplication : Re-execution happens with a new quantity which is a multiplier of the original quantity.

Select among:

  1. Cancel : Clear all the entered parameters and go back to the dashboard.
  2. Save : Save this Strategy.
  3. Save and Deploy : Save and run the Strategy. 
  4. Once Save or Save and Deploy is selected, Specify a unique identifiable name to the  strategy and select between Paper trading and Live Execution.
  5. In Paper Trading logs are displayed and no orders are punched in the broker account.
  6. In Live Execution logs are displayed and orders are also punched in the broker account. 

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