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5-min 20-SMA band intraday option selling backtest: does it work after costs?

We coded the 5-min 20-sma band intraday option selling strategy exactly as taught in a public video and ran it on NIFTY next-week, 2020-12 to 2026-10, with real charges. Our test: ₹89,668 after real costs. 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.

Net after costs
₹89,668
Win rate
46.6%
Worst drawdown
−₹43,842
Reality Score
69/100

The rules, as taught

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.

What the video claims, and what we found

Claim: About ₹4.1 lakh net from Dec-2020 to Oct-2026, ~50% win rate, max drawdown about ₹20k, with zero brokerage.

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.

See the full results, charts and every trade

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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