What can go wrong
Before considering how any system performs, understand how this kind of logic fails. Everything on this page applies to every system we sell and every rule set we test.
What can go wrong
Options selling makes small gains often and occasional large losses. Any buyer should understand how this logic fails before considering how it performs.
Short option positions carry theoretically unlimited loss on the upside and very large loss on the downside. A single adverse session can remove the gains of many profitable ones.
Index options reprice on the open. A stop placed in the rules does not protect against a move that happens overnight or between ticks, and fills can be far from the intended level.
Every result we disclose is simulated on historical data. Simulation cannot reproduce queue position, partial fills, broker latency, or the decisions a human makes watching a losing position.
Logic is written against conditions that existed in the test period. Volatility regimes, expiry structure, lot sizes and exchange rules all change, and a rule set that suited one regime may not suit the next.
We do not place trades, hold funds, or monitor positions. Slippage, outages, margin calls, mis-configured orders and broker failures are the buyer's risk alone.
Short option strategies require sustained margin. Margin rules are set by the exchange and clearing corporation and can be raised without notice, forcing positions to be closed at a loss.
What we disclose, and when
We do not publish performance figures on this website. Returns, drawdowns, the cost and slippage assumptions behind them, and the specific periods where a system performed badly are disclosed in full to a qualified buyer after a mutual non-disclosure agreement.
Those figures are simulated results on historical data. They are not a record of live trading and they are not indicative of future results. The method behind every figure is published on How we test.
We are not registered with SEBI in any capacity. We do not provide investment advice, recommendations, research reports, trading signals, or portfolio management. We sell software and documentation. Whether a system is appropriate for you is your decision, taken with your own advisers.
Risk warning. Trading in derivatives involves substantial risk of loss and is not suitable for every investor. Losses on short option positions can exceed the premium received and can exceed the capital deployed. You should not trade with money you cannot afford to lose.
No advice. AlgoStrike Labs is not registered with the Securities and Exchange Board of India in any capacity. Nothing on this website is investment advice, a recommendation, a research report, or an offer to manage funds.
Simulated results. Any performance information disclosed privately is based on simulated testing on historical data unless expressly stated otherwise in writing. Simulated results have inherent limitations, do not represent actual trading, and are not indicative of future results.
See the full Terms and How we test.