Hey AlphaLab Community! 
When people think of option buying, they usually think of explosive momentum or lightning-fast capital wipeouts. The difference between the two almost always comes down to one thing: disciplined risk management.
Today, we are putting the spotlight on Savdhaan 35% SL a highly controlled directional option buying algo engineered specifically for the NIFTY 50 index.
Strategy Metrics & Blueprint
| Parameter | Details |
|---|---|
| Instrument / Style | NIFTY 50 Index Options (Naked Buying) |
| Min. / Max. Allocation | ₹1,00,000 / ₹3,00,000 |
| Backtest Period | 2 Years |
Core Philosophy: The Cautious Shopper
Imagine a seasoned shopper at a bustling market who refuses to buy on impulse. They wait patiently, watching the crowd, looking for a sudden surge in demand or structural volume imbalances between “In-The-Money” (ITM) and “Out-The-Money” (OTM) contracts.
Savdhaan 35% SL acts exactly like this. It sits on the sidelines, demanding an exceptionally high level of confidence through multiple confirmation checks before entering a single option contract. To capture reliable structural shifts, it strictly hunts for these setups during a specific mid-day window.
Strict Risk Management Layer
The name Savdhaan (meaning cautious) defines the strategy’s automated exit mechanism:
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Hard 35% Stop Loss: The moment a contract is bought, an automated stop-loss order is triggered at 35% of the entry premium to cleanly cut losses if the market reverses.
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35% Profit Target: It targets a 35% profit booking level to lock in gains before the underlying momentum fizzles out or decay kicks in.
Who is this Algo for?
This strategy is built for traders who want exposure to the sharp upside of option buying but want to strip out emotional errors. By hardcoding a strict, balanced risk-to-reward boundary, it converts a notoriously volatile trading style into a systematic, mechanical routine.
Have you deployed Savdhaan 35% SL in your Stratzy mix yet? Drop your questions or thoughts below! 