As you keep using and showing love to our algos, we’re expanding the universe of strategies available to you.
We’re (very) excited to announce that Sensex Algos are now live on Stratzy!
With this launch, you can discover and deploy systematic strategies on another of India’s most important market indices, and diversify your algo-portfolio.
Kindly guide me regarding the Index Sniper strategy. I have been holding it for more than 6 months and am currently facing a substantial drawdown. I understand that every strategy goes through difficult phases, but the prolonged underperformance is making it difficult to continue with confidence.Could you please share your view on whether this drawdown is within the expected range based on historical performance, and whether it would be prudent to continue with the strategy?
We understand that it can be difficult to stay invested in an Algo during an extended drawdown period.
That said, it’s important to note that Index Sniper is an option-buying strategy and, as highlighted on the Algo page, falls under the Very High Risk category. By nature, option-buying strategies can experience prolonged periods of underperformance and higher drawdowns compared to many other strategy types.
Please also note that no asset class, strategy, or Algo can guarantee returns, and past performance should not be considered indicative of future results.
Rather than allocating a large portion of capital to a single high-risk Algo, it is generally advisable to diversify across multiple uncorrelated Algos with different trading styles and risk profiles. This can help reduce dependence on the performance cycle of any one strategy.
You may find the following post helpful in understanding the philosophy behind Algo diversification and portfolio construction:
For any other assistance, feel free to reach out to us at support@stratzy.in
