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Overnight 40-delta short strangle

Option selling · NIFTY weekly · tested 2017-02 to 2026-10

The claim

₹2.09 L

About ₹2.09 lakh over May-2018 to May-2023 with 70% winners (≈93% on ₹2.24 lakh).

Reality, same dates, after costs

₹1.70 L

2018-05 to 2023-05 · 81% of the claim found

As taught, the rules made about ₹2.46 lakh per lot from Feb-2017 to Oct-2026, but only about ₹13k since the expiry day changed in Sep-2025.

Algrow Reality Score

25/40
claim: 26/30
profit: 28/30
steady

Net, full test: ₹2.46 L
Worst drawdown: −₹61,688
Trades: —
Win rate: 70.6%

Size: 1 lot (historical lot sizes).

Watch the video

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How our test compares with the video

For the video's 5-year window we got ₹1.92 lakh before costs (₹1.70 lakh after) with a 73% win rate, close to the claimed ₹2.09 lakh; the video's final year (+₹34k) did not reproduce (about −₹3.5k after costs).

Worth knowing: Since the weekly expiry moved to Tuesday, the rule becomes a Friday-to-Monday weekend hold.

Equity curve — rules as taught, after costs2026-10-16 · ₹2.46 L · −₹9,304 from peak

Underwater: how far below its best point the account was

2017-02-22worst −₹61,6882026-10-16

If you had started with ₹1 lakh on…

Drag to pick a start date. Trading the video's rules at 1 lot (historical lot sizes), not compounded. Weekly points.

2017-02-22

You'd have today

₹3.45 L

Profit / loss

+₹2.45 L

Lowest point

₹98,467

Honest note: ₹1 lakh may be less than the margin this needs; the result is in rupees per lot, not a % return.

Year by year — tap to dig in

1 lot, rules as taught, after costs. Tap a year, then a month.

Monthly heatmap

	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026

Winning vs losing days

417 days with a position · about 62% green

−₹11k₹0₹11k+

BEST DAY

₹9,650

2020-04-15

WORST DAY

−₹15,546

2026-03-23

The rules we tested

Two trading days before weekly expiry at about 15:28, sell a call and put near 40 delta and buy them back the next day at the same time, with a stop only if the combined premium triples. Naked, no target. Assumptions: 'Tuesday' read as two trading days before expiry, delta from implied volatility, overnight stop hits filled at the 09:18 open.

Method and Reality Score

Full method: how we test

1-minute data, fills at the next minute's open, overnight stops filled at the 09:18 open, real broker charges incl. 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 Overnight 40-delta short strangle strategy work?

Partly. As taught, the rules made about ₹2.46 lakh per lot from Feb-2017 to Oct-2026, but only about ₹13k since the expiry day changed in Sep-2025. Tested on NIFTY weekly, 2017-02 to 2026-10, after real costs. Reality Score 79/100.

What is the win rate of the Overnight 40-delta short strangle strategy after costs?

70.6% of trades made money after real charges in our test (2017-02 to 2026-10). A high or low win rate alone says little; the net result was ₹2.46 L with a worst drawdown of −₹61,688.

How much did it make or lose in the backtest?

Claimed ₹2.09 L. Reality ₹1.70 L. Over 2017-02 to 2026-10 (1 lot (historical lot sizes)), the net after charges was ₹2.46 L and the worst fall from a peak was −₹61,688.

What exact rules were tested?

How was the Overnight 40-delta short strangle 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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Important

These are educational backtests of publicly taught rules, not investment advice or a recommendation to trade. Algrow is not registered with SEBI as an investment adviser or research analyst. Past results, real or simulated, do not predict future results; option trading can lose more than the premium or margin used.

Method: 1-minute historical exchange data; signals filled at the next minute's open unless the rules say otherwise; real broker charges, STT, exchange fees, stamp duty and GST; lot size as on each trade date. Where a video leaves a rule open, the assumption we made is stated. We test only the rules as presented and paraphrase the claim; watch the video for the creator's full explanation. Full method: how we test.

Creators can request a review or correction: write to [email protected] with the page link and what you believe is wrong. We will re-run the test and update the page.