Good morning, I have been paper testing BN options strategy for atleast 1 year now. I started trading with real capital in late Sep 2018 and here is a summary of my strategy (short strangle at 800-1000 points away from SPOT and adjustments according to market movements)
Lot size - depends on the VIX value, spot, important events in near one week and day of week
strategy - I’ve mentioned in my post - yes, short strangle
way OTM short strangles will give money in the end …
only thing we should avoid tricky days , cover if there are any events like rbi meet , budget etc …
invariably losses will be huge incase of black swan events that we cant avoid … one way is hedge it with even further OTMs , but this will eat your profits
1.maybe yes, one movement like that Question your system’s risk management
2.I don’t think such kind exists in India
3.IDK
4.Sizing is what differentiate good traders t great ones. Keeping Delta neutral can be a start