Backtesting Smart Straddles | Options Trading | Bank Nifty Options Selling

In this episode, we continue our conversation with Vishal Mehta (Founder, ‪@MarketScanner‬ ) on executing and Backtesting the Smart Straddle Strategy.

The conversation begins with Vishal explaining the difference between Straddle and Strangle strategy. He explains the importance of stoploss. He highlights that many people forget to put a stoploss in hurry and regret later. Stoploss is the only holy grail to survive in the market.

Vishal suggests traders to study the past performance of the strategy. He believes that if it has worked in the past then it's probability of working in future is high.

He doesn't fail to mention here that no strategy can earn you money on daily basis. There will be times when a good strategy may also fail. Vishal mentions this as a testing time for a trader. One needs to be patient as many would exit the non-working strategy and eventually it's alpha will be back to the normal.

Smart Straddle Strategy has never had a losing quarter since 2016.But it has several losing weeks. He recommends focusing on the law of large numbers and evaluate a strategy on a quarterly basis.

Vishal also explains with his own example that every trader goes through a drawdown. If he stays firm during that period, then there are high chances of recovering more than just what you lose.

We are certain that this conversation will provide you great insights and bring out a smarter trader inside you.

Enjoy...!

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Timeline:
0:00 Introduction
3:16 Difference between Straddle and Strangle
14:01 Right time to leave the strategy if it's not working
25:43 Ways to improve your strategy
34:00 Rapid fire round

About Vishal Mehta:-
Vishal Mehta is a full time independent trader. He is the founder of ‪@MarketScanner‬ . He is a Chartered Market Technician (CMT) from USA. He is a Co-Chair for Mumbai Chapter for CMT. He started as a discretionary trader. He started focusing on systematic strategies after seeing the benefits of systematic trading and growth in automated trading.
Vishal has worked with all the leading financial data service providers in India. He has worked with companies like Bloomberg, Thomson Reuters, Spider Software, Reliable Software and Financial Technologies.
He also achieved a unique feat of conducting training sessions on Technical Analysis in major central banks of Sri-Lanka, Maldives, Nepal and India.
He has done various seminars on extending the education of technical analysis and systematic trading and automation trading. He likes to read books and spend time with his family and friends in his free time.

You can follow Vishal on Twitter: https://twitter.com/vishalmehta29?s=20

About The Right Choices with Oracles of Dalal Street :
The Right Choices with Oracles of Dalal Street is hosted by Apurva Sheth. He is the Chief Markets Editor at Samco. He has more than 11 years of experience in financial markets.
Our show focuses on curating actionable and insightful strategies from real-world stock market heroes. Our guests have been successful in markets and are willing to share their insights with you.

Tune in to The Right Choices with Oracles of Dalal Street every Saturday at 11 am on our YouTube channel.

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