We are going to backtest this   Nifty Weekly Short Straddle 3 day expire Backtest Strategy. we will see the results and check whether this strategy is profitable or not.

Nifty Intraday Strategies

Nifty Short Straddle
Nifty Short Strangle
Nifty Iron Condoor
Nifty Iron Fly
Nifty Bull Call Spread
Nifty Bull Put Spread
Nifty Bear Call Spread
Nifty Bear Put Spread
Nifty Call Option Buy
Nifty Put Option Buy

Nifty Weekly Strategies
  • Nifty Short Straddle
    Nifty Short Strangle
    Nifty Iron Condoor
    Nifty Iron Fly
    Nifty Bull Call Spread
    Nifty Bull Put Spread
    Nifty Bear Call Spread
    Nifty Bear Put Spread
    Nifty Call Option Buy
    Nifty Put Option Buy
  • Exit time 2::30pm
  • Exit time 2:45pm
  • Exit time 3pm
  • Exit time 3:15pm
  • Exit time 3:25pm
  •  
Nifty Monthly Strategies

Nifty Short Straddle
Nifty Short Strangle
Nifty Iron Condoor
Nifty Iron Fly
Nifty Bull Call Spread
Nifty Bull Put Spread
Nifty Bear Call Spread
Nifty Bear Put Spread
Nifty Call Option Buy
Nifty Put Option Buy

Bank Nifty Strategies
  • Bank Nifty Short Straddle
    Bank Nifty Short Strangle
    Bank Nifty Iron Condoor
    Bank Nifty Iron Fly
    Bank Nifty Bull Call Spread
    Bank Nifty Bull Put Spread
    Bank Nifty Bear Call Spread
    Bank Nifty Bear Put Spread
    Bank Nifty Call Option Buy
    Bank Nifty Put Option Buy

Nifty Weekly Short Straddle 3 day expire Backtest

Nifty Weekly Short Straddle 3 day expire Backtest

Nifty Weekly Short Straddle 3 Day Expiry Result

See also  Nifty Intraday 916 Short Strangle Exit time 1445pm

Nifty Weekly Short Straddle 3 day expire Backtest

Nifty Weekly Short Straddle 3 Day Expiry Summary

See also  Nifty Intraday Naked Put Buying Backtest (ATM -100)

Nifty Weekly Short Straddle 3 day expire Backtest

Nifty Weekly Short Straddle 3 Day Expiry Day Wise

Nifty Weekly Short Straddle 3 day expire Backtest

Nifty Weekly Short Straddle 3 Day Expiry Month Wise

Nifty Weekly Short Straddle 3 day expire Backtest

What is a Nifty Iron Condor?

The Nifty Iron Condor is a neutral options strategy aimed at profiting from range-bound movement of the Nifty index. It involves selling an at-the-money (ATM) put and call and simultaneously buying out-of-the-money (OTM) put and call options to cap risk on both ends.

 

How does a Nifty Iron Condor work?

This strategy consists of:

  • Selling one ATM call option.
  • Selling one ATM put option.
  • Buying one OTM call option (higher strike).
  • Buying one OTM put option (lower strike).

The short options generate income, while the long options provide protection against sharp market movements.

When is the Nifty Iron Condor strategy used?

This strategy is ideal when:

  • The Nifty index is expected to trade within a limited range.
  • Implied volatility (IV) is moderate to low.
  • There are no major events or news that could trigger significant price movements.
What are the benefits of a Nifty Iron Condor?
  • Risk is limited on both the upside and downside.
  • Generates profit if the index remains range-bound.
  • Gains from time decay as the options lose value closer to expiration.
  • Flexible and can be adjusted to manage risk.
What are the drawbacks of a Nifty Iron Condor?
  • Profit potential is limited compared to directional strategies.
  • Losses occur if the market breaks out of the defined range.
  • Changes in implied volatility can negatively impact the strategy.
  • Requires active monitoring, especially as the index approaches the short strike prices.
How are breakeven points calculated for this strategy?
  • Upper Breakeven = Strike Price of Sold Call + Net Premium Received
  • Lower Breakeven = Strike Price of Sold Put – Net Premium Received

Conclusion for backtesting of Nifty Weekly Short Straddle 3 day expire Backtest

Below is the conclusion on free backtest of Nifty Weekly Short Straddle 3 day expire Backtest

We can observe that the Nifty Weekly Short Straddle 3 day expire Backtest Strategy is Profitable and it has given a profit of Rs.125459 .

It has average day profit of Rs.451 . Max profit on a single day is Rs.28052 and Max loss of Rs.-65142 .

It has 60 %win days and 40% loss days.

Average monthly profit is Rs.1940 .

Average Profit on win days is Rs.6939 .

Average Loss on losing days is Rs.-9309 .

Max winning streak is 11 days and max losing streak is 5 days.

Max drawdown is Rs.-153401.

recovery period is 1113 (1032 Days) (13 Jan 2020 – 30 Jan 2023)

Return to max drawdown is 0.15.

Expectancy is 0.05 for this Nifty Weekly Short Straddle 3 day expire Backtest

Important Points to know of Nifty Weekly Short Straddle 3 day expire Backtest

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