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5-min 20-SMA band intraday option selling
Option selling · NIFTY next-week · tested 2020-12 to 2026-10
The claim
About ₹4.1 lakh net from Dec-2020 to Oct-2026, ~50% win rate, max drawdown about ₹20k, with zero brokerage.
Our test, after costs
₹89,668
2020-12 to 2026-10 · 1 lot per leg (lot 65)
As taught, the rules made about ₹0.9 lakh over Dec-2020 to Oct-2026 after real broker charges, versus ₹3.1 lakh under the video's zero-brokerage cost model.
Algrow Reality Score
- 25/40
- claim
- 18/30
- profit
- 26/30
- steady
- Net, full test
- ₹89,668
- Worst drawdown
- −₹43,842
- Trades
- 9,156
- Win rate
- 46.6%
Size: 1 lot per leg (lot 65).
How our test compares with the video
Signals, strikes and timings matched the video's example trades almost exactly, and with the video's own cost model we got about 75% of its profit (₹3.06 lakh vs ₹4.10 lakh). Real per-order brokerage on ~3,000 orders a year takes most of the remaining edge.
Worth knowing: Yearly figures rounded to the nearest ₹1k; 2024 was a losing year at real costs.
Year by year
1 lot, rules as taught, after costs.
The rules we tested
On a 5-minute NIFTY chart with a 20-bar SMA and a ±0.1% band, a close above the band sells next-week puts and a close below sells next-week calls, flipping on the opposite signal. Two legs per side (one near ₹50 with a 15-point stop, one near ₹30 with a 25% stop), trading 09:16–15:10, naked, 1 lot each. Assumptions: '≤₹50' = highest-priced option not above ₹50; direction carries over from the previous day; signals on the 5-min close fill at the next minute's open.
Method and Reality Score
1-minute option data, signal on 5-minute close filled at the next minute's open, real broker charges incl. ₹9/lot/order brokerage, STT and taxes, 0.25% slippage.
- 1-minute historical NSE/BSE option and futures data; each video's rules coded exactly as taught, with stated assumptions where the video left a gap.
- Signals on a candle's close are filled at the next minute's open (unless the rules say otherwise); stops and targets are checked against each minute's high and low.
- Real broker charges, STT, exchange fees, stamp duty and GST deducted on every order; lot size as it was on each trade date.
- Results are per lot unless stated. No leverage, compounding or position sizing beyond the video's own rules.
Reality Score (0–100) = claim match (up to 40: matches 40, partly 25, fails after costs 8, not reproduced 0) + after-cost profit (up to 30: zero if it loses; more when total profit is large versus the worst drawdown) + steadiness (up to 30: share of profitable years, plus 5 if the latest year made money).
Questions people ask
Does the 5-min 20-SMA band intraday option selling strategy work?
Partly. As taught, the rules made about ₹0.9 lakh over Dec-2020 to Oct-2026 after real broker charges, versus ₹3.1 lakh under the video's zero-brokerage cost model. Tested on NIFTY next-week, 2020-12 to 2026-10, after real costs. Reality Score 69/100.
What is the win rate of the 5-min 20-SMA band intraday option selling strategy after costs?
46.6% of 9,156 trades made money after real charges in our test (2020-12 to 2026-10). A high or low win rate alone says little; the net result was ₹89,668 with a worst drawdown of −₹43,842.
How much did it make or lose in the backtest?
Our test: ₹89,668 after real costs. Over 2020-12 to 2026-10 (1 lot per leg (lot 65)), the net after charges was ₹89,668 and the worst fall from a peak was −₹43,842.
What exact rules were tested?
On a 5-minute NIFTY chart with a 20-bar SMA and a ±0.1% band, a close above the band sells next-week puts and a close below sells next-week calls, flipping on the opposite signal. Two legs per side (one near ₹50 with a 15-point stop, one near ₹30 with a 25% stop), trading 09:16–15:10, naked, 1 lot each. Assumptions: '≤₹50' = highest-priced option not above ₹50; direction carries over from the previous day; signals on the 5-min close fill at the next minute's open.
How was the 5-min 20-SMA band intraday option selling backtest done?
On 1-minute exchange data since 2017, signals filled at the next minute's open, with real broker charges, STT, exchange fees, SEBI fee, stamp duty and GST, and the lot size of each date. Rules exactly as taught; gaps we had to fill are stated. Full method on our How we test page.
Run it yourself — coming soon
These rules use features our public backtester can't express exactly yet, so we won't pre-fill an approximation. Build your own idea in the meantime.
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