Algorum Kubera BankNifty model takes advantage of the fact that Nifty Bank (BankNifty) and Nifty Fin Service (FinNifty) are highly correlated indices (almost 95%). It then applies our unique mathematical model and finds optimal option strikes with optimal premiums in BankNifty and FinNifty that have mathematically provable 1:3 risk:reward ratio. Kubera BankNifty also takes additional call or put spread towards the end of the expiry day to improve the PNL. However, when this additional spread is taken the risk increases for this model, compared to its original positions.
Kubera BankNifty identifies optimal option strikes with premiums related to Bear Call Spread in BankNifty current week expiry options and Bull Call Spread in FinNifty current week expiry options based on our model parameters.
Kubera BankNifty risk profile is a model parameter that indicates the risk factor that the model should consider while identifying the option strikes and premiums. Based on this risk profile, the model will try to find the optimal option strikes with optimal premiums.
Kubera BankNifty model identifies opportunities that have probability of less loss on losing day and high profit on winning days. The model with different parameters is seen to have an average risk/reward ratio of 1:3 and winning percent of 55% to 60%.
Kubera BankNifty model will be efficient to apply on a minimum capital of INR 10 Lakhs. This base model can easily scale to a few crore rupees.
Kubera BankNifty model is designed for Nifty Bank (BankNifty) weekly expiry days.
How To Use
Just register for the Algorum app at https://app.algorum.in. Once you register you will see the model in the app. Click on the "Trade" button on Kubera BankNifty model. Inside the model, you can start the simulation with "Start" button and provide the capital and chose the risk profile. Risk profile is explained above. Model will monitor the market and does thousands of calculations every minute to identify the optimal strikes, premiums and quantity/lots within your capital. Once the optimal result is identified, app shows the live PNL simulation of the model positions. Taking the positions from the opportunity is your prerogative. Please read our "Terms of Service", "Risk Disclaimer". Our model job is to show you the optimal options strikes, prices and quantity with mathematically and statistically identified 1:3 risk:reward ratio.
Telegram Bot Notifications
Once you register with the Algorum app at https://app.algorum.in, you will find "Open Bot" button inside the Kubera BankNifty model. This button will take you into your personal Telegram Bot channel for Kubera BankNifty. You can register with the bot using the /setemail command. Use /help command to see help on different bot commands. After you register with the bot, you will receive model results each time model identifies an opportunity on the days where you started the model simulation.