Methodology & assumptions
A plain-language explanation of the data, strategy process, paper execution model and limitations behind the published results.
What is being tested?
Five common signal rule sets observe Nifty 50 and Bank Nifty. Each signal is shared by two independent execution accounts: BUY accounts buy CE on bullish signals and PE on bearish signals; SELL accounts sell PE on bullish signals and CE on bearish signals. The SELL accounts are unhedged single-leg short-option simulations. Defined-risk credit spreads are not included in this release.
Expiry and calendar research
Each trade carries expiry-series, calendar DTE, trading-session DTE, expiry-phase and weekday metadata captured at signal/entry time. The public Expiry & Calendar page groups closed trades by weekday, expiry type, DTE bucket, expiry phase, execution model and entry-time regime. It uses recorded trade-time metadata; missing historical fields are not reconstructed from the current contract master.
Optional strategy weekday restrictions
Per-execution-account weekday restrictions are disabled by default. If enabled by an administrator, an account can be restricted to selected weekdays. Empty weekday selections mean unrestricted Monday–Friday operation. The filter only blocks new entries; it does not pause indicators or interfere with monitoring/exit handling for existing positions.
Virtual capital
Each strategy starts with ₹100,000 in simulated capital. The combined ten-account starting balance is ₹1,000,000. No real money is deployed.
Signal timing
The worker evaluates fresh, completed five-minute candles from the current trading session. Previous-session candles are used for indicator warm-up, not as a fresh entry signal. A signal is evaluated only once per strategy, underlying and signal candle.
Option selection
The paper engine selects from the most recently captured nearest-expiry option chain. It prefers absolute delta near 0.45 when Greeks are available, subject to valid bid/ask, displayed depth, quote age, spread, one-lot risk and available virtual capital.
Single-leg option-selling margin
Each SELL account is blocked unless a manually entered one-lot margin reserve from the Zerodha margin calculator, plus the configured safety buffer, fits its separately configured simulated margin capacity. This capacity is distinct from virtual P&L capital and is not a live margin quote. Naked short-option losses can exceed the premium stop and may be very large; the seller accounts are paper-only. A static margin reserve does not fully represent SPAN/ELM changes, intraday margin variation or portfolio offsets.
Paper fills
BUY entries use the displayed ask plus 25 bps slippage and BUY exits use the bid less slippage. SELL entries use the bid less slippage and SELL exits use the ask plus slippage. This is a conservative model, not an actual exchange fill or a tick-by-tick order-book replay.
Risk controls
Per-trade risk budget is ₹1,500 fixed per execution account. Stop-loss is 15.0% of option premium and target is 1.25R. Daily loss limit is 1.50% of initial capital, based on realised net P&L from closed trades only; open-position mark-to-market is informational. There is no fixed daily trade-count cap; only one open position and one lot are permitted per strategy account.
Trading window
New entries are blocked after 14:15 IST. Open positions are intended to be squared off by 15:20 IST. Fresh option quote maximum age is 120 seconds. Strategies do not carry a position intentionally overnight.
Costs
Simulated P&L uses Zerodha's published NSE index-option fee schedule as an indicative model: ₹20 per executed order, 0.03552% exchange component plus ₹0.01/crore IPFT (Zerodha's displayed combined rate is 0.03553%), 0.15% STT on sell-side premium, 0.003% stamp duty on buy-side premium, ₹10/crore SEBI charges and applicable GST. Rates are date-sensitive and rounded/aggregated differently in actual contract notes; the simulation is not an exact broker bill. No exercise/assignment or physical-settlement charges are modelled.
What a skipped entry means
A valid underlying signal may still be rejected because the strategy account already has an open position, its prior position has not fully closed, the signal was formed before that exit, quotes are stale or missing, spreads are wide, displayed depth is insufficient, one-lot risk exceeds the account budget, virtual capital is insufficient, the daily loss limit is reached or the 14:15 IST entry cutoff has passed. Skipped signals are recorded and never queued.
Limitations
Cron polling is not continuous tick-level monitoring. A stop or target may be detected later than its first market touch. Candlestick and option-chain snapshots do not reproduce queue position, partial fills, market impact or all latency effects. Real trading performance can differ materially.
All records on this site are simulated paper trades. No broker orders are placed. Performance is shown for research and educational purposes only, is not investment advice, and does not guarantee future results. The 55–65% win-rate range is a research objective, not an achieved or promised result.