Introducing Automated Strategies

Introducing Automated Strategies

Automated strategies are a set of pre-build options strategies that adapt to market conditions and place trades on your behalf. With its subscription, the strategies are executed automatically with no manual intervention. These strategies can be helpful to users who have little knowledge of options trading and are looking to benefit from it. 

At 5paisa, we offer 6 different types of strategies and each has its own execution logic and margin requirement. Let’s start with them one by one- 

Supertrend Strategy (BankNifty)
This strategy uses super-trend indicators to generate signals. Supertrend is a trend-following indicator with an aim to make the most from trending markets. Also, note that the strategy involves options selling which helps it to benefit from theta decay.

Pre-requisites
  • Strategy Idea- It benefits from directional markets.
  • Strategy Type- Option Selling (Intraday)
  • Instrument- BankNifty
  • Min. Investment- ₹1,60,000
  • Additional Charges- ₹20 per trade
  • 100% Collateral benefit. No cash margin is required
Note- This strategy is available on both the mobile app & web portal. 

Straddle Strategy
This strategy uses a straddle pattern as straddle benefits from non-directional markets. This strategy aims to make the most of non-trending markets. As per backtesting, it is found that 70% of the time, the market is sideways hence this strategy has higher chances of earning decent returns. Also, note that the strategy involves options selling which helps it to benefit from theta decay.

Pre-requisites
  • Strategy Idea- It benefits from non-directional markets.
  • Strategy Type- Option Selling (Intraday)
  • Instrument- BankNifty
  • Min. Investment- ₹1,60,000
  • Additional Charges- ₹20 per trade
  • 100% Collateral benefit. No cash margin is required
Note- This strategy is available on both the mobile app & web portal. 

Infinity Mini
It is a suite of Systematic Index Options Trading Strategies which is a combination of multiple non-correlated strategies that aid in risk management through diversification. This is a purely intraday suite, which includes various directional as well as non-directional option selling strategies in Nifty and Bank Nifty Options. It also helps in attaining superior risk-adjusted returns year after year along with a smooth equity curve and uses 4 different strategies.

Pre-requisites
  • Number of Strategies used- 4
  • Strategy Type- Option Selling (Intraday)
  • Instrument- BankNifty/Nifty/Finnifty
  • Min. Investment- ₹11,00,000
  • Charges- ₹3,000(1 month)/ ₹15,000(6 months)
  • 100% Collateral benefit. No cash margin is required
Note- This strategy is available on the web portal
 
Infinity Junior
This is a purely intraday suite that includes various directional as well as non-directional option selling strategies in Nifty and Bank Nifty Options. It uses a combination of 6 different strategies.

Pre-requisites
  • Number of Strategies used- 6
  • Strategy Type- Option Selling (Intraday)
  • Instrument- BankNifty/Nifty/Finnifty
  • Min. Investment- ₹21,00,000
  • Charges- ₹5,000(1 month)/ ₹25,000(6 months)
  • 100% Collateral benefit. No cash margin is required
Note- This strategy is available on the web portal

Infinity Intraday option
This is also a purely intraday suite that includes various directional as well as non-directional option selling strategies in Nifty and Bank Nifty Options. It uses 17 different strategies to perform options trading.

Pre-requisites
  • Number of Strategies used- 17
  • Strategy Type- Option Selling (Intraday)
  • Instrument- BankNifty/Nifty/Finnifty
  • Min. Investment- ₹25,00,000
  • Charges- As per the performance
  • 100% Collateral benefit. No cash margin is required
Note- This strategy is available on the web portal

Infinity Option
This suite contains a mix of 24 strategies most of which are intraday. It is a combination of directional and non-directional strategies, which further include options buying as well as selling strategies in Nifty and Bank Nifty Options.

Pre-requisites
  • Number of Strategies used- 24
  • Strategy Type- Option Buying/Selling (Intraday & Position)
  • Instrument- BankNifty/Nifty/Finnifty
  • Min. Investment- ₹30,00,000
  • Charges- As per the performance
  • 100% collateral benefit at 0.03% interest
Note- This strategy is available on the web portal

All the above-mentioned strategies offer 2 more benefits to the users. They are mentioned as under-
  1. Pledge your shares- To use the strategies, users can create collateral margins by pledging stocks. Read here to know more about it. 

  2. Get 100% collateral benefit with no charges for Intraday Strategies and 0.03% for Positional Trades while using Infinity Options. Read here to know more about it.
Please note- For all the automated strategies, you have to log in on a daily basis to the respective strategy portal for successful trade placement. 

Read here for the terms & conditions of Advanced Strategies & CWA Infinity Options.