Skip to content
Algovested
Start free

A calm-market NIFTY strategy, with a safety net on both sides.

It earns when NIFTY moves gently, which is most of the time, and limits the damage when it doesn't. Here's exactly what it does, in plain words.

The shape of every trade

Illustration: how profit changes with NIFTY's price at expiryProfit is highest when NIFTY stays near where the trade started, and loss is limited on both sides by protective options.Profit zoneLoss is cappedLoss is cappedNIFTY price at expiry

Traders call this a hedged “double ratio butterfly”. You don't need to remember that. What matters: the most it can gain on a trade is limited, and so is the most it can lose.

How one trade plays out

  1. It opens one trade

    Around 9:20 AM on a normal market day, it buys and sells six NIFTY options together for next month's expiry. The bought options protect you if NIFTY jumps or crashes.

  2. Time works in your favour

    Each day that NIFTY stays in a calm range, the options it sold lose value, and that is the profit.

  3. It closes on its own

    When the trade is up about 3.16% of the money set aside, down about 2.63%, or 7 days before expiry, whichever comes first.

  4. Then it starts again

    The next trade opens on the next trading day, sized the way you chose.

The numbers, for one lot

Money set aside by Dhan
₹2,95,500
Keep in your Dhan account
₹3,70,000
Profit target
+₹9,350
Stop-loss
−₹7,750

Figures are approximate and change slightly with each trade's margin. We only ever use 80% of your balance, so a sudden margin increase doesn't force a sale. Brokerage, taxes and slippage are extra.

What can go wrong

  • Several stop-losses can happen in a row. A losing month is normal.
  • If NIFTY jumps sharply at the open (a “gap”), the exit can happen at a worse price than the stop-loss.
  • Exits are watched by our servers every few minutes during market hours. If our service or Dhan has an outage, your trade stays open in Dhan and you can close it in the Dhan app at any time.
  • Past results don't guarantee future returns. This is software, not investment advice.

Common questions

Does Algovested hold my money?
No. Your money stays in your Dhan account. We can place and close trades; we can't withdraw anything.
How much money do I need?
About ₹3,70,000 in Dhan for one lot. We only ever use 80% of your balance, so a margin increase doesn't force a sale.
Can I lose money?
Yes. Options can lose money and losing months happen. Every trade has a stop-loss, so each loss is limited, but it is not zero.
Can I stop whenever I want?
Yes. Press Stop on Home and any open trade is closed at the market price (at the next market open if the market is closed).
Do I have to watch the market?
No. Entries and exits are automatic. Home tells you if anything needs your attention.
Can I see how it does before I pay?
Yes. A free account shows the strategy's live trade, and every past trade is on the Results page.
What's a dedicated IP and why do I need one?
SEBI rules require automated orders to come from a fixed internet address registered to your account. It's included in the paid plan and we set it up for you.

See it work before you commit

A free account shows the live trade and every result.

See past resultsCreate free account