Python Nifty Options Algo
Budget: ₹5,000 – ₹15,000 INR
Precision Seller (V2.0)
1. Project Overview
Objective: To automate a Nifty Option Selling strategy based on Index Spot levels and Candlestick patterns to eliminate emotional errors (Revenge Trading).
Platform: Python-based bot using Angel One SmartAPI.
Hosting: VPS (Windows or Linux Cloud).
Segment: Nifty Weekly Options (Intraday).
2. Market Data & Setup
Brain (Monitoring): NIFTY 50 Index (Spot Chart).
Levels to Fetch:
Previous Day High (PDH), Low (PDL), and Close (PDC).
Standard Pivot Points (R1, R2, S1, S2, P).
Entry Logic: Trade is only valid if the Spot price is within 0.1% of these levels.
3. Entry & Execution Logic
Trigger Patterns (OR Condition):
Inverted Hammer / Shooting Star.
Bearish Engulfing.
Lookback Rule: If the level-touching candle doesn't form a pattern, monitor the next 3 candles. If a pattern forms, trigger entry.
Strike Selection:
Dynamically select the Weekly Expiry Option with a premium closest to ₹150 (Preferably > ₹150).
Position Sizing: 1 Lot (Selling).
Hedging (Margin/Safety): Simultaneously Buy a far OTM option (Premium ₹10-15) before executing the Sell order.
4. Risk Management (The "Anti-Loss" Rules)
Stop Loss (Spot Based):
Level: High of the entry candle + 4 point buffer.
Execution: Exit Option position immediately if Spot price hits this level.
Trailing SL:
Once MTM reaches 0.5% profit, move SL to Cost.
Implement a Trailing Jump (e.g., for every 10 points move in favor, move SL by 5 points).
Daily Limits:
Max Trades: 2 per day.
Profit Lock: If 1st trade profit >= 1% of capital (₹1,000), STOP for the day.
Loss Stop: If 1st trade hits SL, allow 2nd trade. If 2nd trade also hits SL, STOP for the day.
5. Technical Requirements for Developer
Language: Python.
API: Angel One SmartAPI integration.
Reporting: Real-time logs and a summary of P&L sent to Telegram/WhatsApp.
Error Handling: Handle API timeouts, internet disconnection, and auto-relogin on VPS startup.
Backtesting: Provide a 1-year backtest report on this logic before going live.
1. Project Overview
Objective: To automate a Nifty Option Selling strategy based on Index Spot levels and Candlestick patterns to eliminate emotional errors (Revenge Trading).
Platform: Python-based bot using Angel One SmartAPI.
Hosting: VPS (Windows or Linux Cloud).
Segment: Nifty Weekly Options (Intraday).
2. Market Data & Setup
Brain (Monitoring): NIFTY 50 Index (Spot Chart).
Levels to Fetch:
Previous Day High (PDH), Low (PDL), and Close (PDC).
Standard Pivot Points (R1, R2, S1, S2, P).
Entry Logic: Trade is only valid if the Spot price is within 0.1% of these levels.
3. Entry & Execution Logic
Trigger Patterns (OR Condition):
Inverted Hammer / Shooting Star.
Bearish Engulfing.
Lookback Rule: If the level-touching candle doesn't form a pattern, monitor the next 3 candles. If a pattern forms, trigger entry.
Strike Selection:
Dynamically select the Weekly Expiry Option with a premium closest to ₹150 (Preferably > ₹150).
Position Sizing: 1 Lot (Selling).
Hedging (Margin/Safety): Simultaneously Buy a far OTM option (Premium ₹10-15) before executing the Sell order.
4. Risk Management (The "Anti-Loss" Rules)
Stop Loss (Spot Based):
Level: High of the entry candle + 4 point buffer.
Execution: Exit Option position immediately if Spot price hits this level.
Trailing SL:
Once MTM reaches 0.5% profit, move SL to Cost.
Implement a Trailing Jump (e.g., for every 10 points move in favor, move SL by 5 points).
Daily Limits:
Max Trades: 2 per day.
Profit Lock: If 1st trade profit >= 1% of capital (₹1,000), STOP for the day.
Loss Stop: If 1st trade hits SL, allow 2nd trade. If 2nd trade also hits SL, STOP for the day.
5. Technical Requirements for Developer
Language: Python.
API: Angel One SmartAPI integration.
Reporting: Real-time logs and a summary of P&L sent to Telegram/WhatsApp.
Error Handling: Handle API timeouts, internet disconnection, and auto-relogin on VPS startup.
Backtesting: Provide a 1-year backtest report on this logic before going live.
Related categories:
PHP
Python
Linux
Software Architecture
VPS
Risk Management
Financial Analysis
API
Automation
Backtesting