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Monthly 1:2:1 call ratio spread backtest: does it work after costs?

We coded the monthly 1:2:1 call ratio spread strategy exactly as taught in a public video and ran it on NIFTY monthly, 2017-01 to 2026-10, with real charges. Our test: ₹26,467 after real costs. In the claimed window the published rules made about 3%, not 32%; most months are skipped by the 1% debit filter.

Net after costs
₹26,467
Win rate
—
Worst drawdown
−₹12,779
Reality Score
40/100

The rules, as taught

On the last Friday of the month at 15:15, using next month's expiry: buy 1 call 300 points above ATM, sell 2 calls 600 above, buy 1 far call as a wing. Skip if the debit is above 1% of capital; if the credit is above 1%, move strikes up 100. Target +2.5%, stop −3% of capital, exit by day 19.

What the video claims, and what we found

Claim: About 32% return from Jan 2024 to Nov 2025.

For Jan 2024 – Nov 2025 we got about +₹4.9k (+3%) on ₹1.5 L with the far call 1,600 points above ATM, and −₹3.4k with it 1,000 above; the video does not state capital, so we tried ₹50k–2 L.

See the full results, charts and every trade

Questions people ask

Does the Monthly 1:2:1 call ratio spread strategy work?

We could not reproduce the claimed result. In the claimed window the published rules made about 3%, not 32%; most months are skipped by the 1% debit filter. Tested on NIFTY monthly, 2017-01 to 2026-10, after real costs. Reality Score 40/100.

What is the win rate of the Monthly 1:2:1 call ratio spread strategy after costs?

We did not count a per-trade win rate for this one; the net result after real charges was ₹26,467 with a worst drawdown of −₹12,779.

How much did it make or lose in the backtest?

Our test: ₹26,467 after real costs. Over 2017-01 to 2026-10 (1 lot, ₹1.5 L capital), the net after charges was ₹26,467 and the worst fall from a peak was −₹12,779.

What exact rules were tested?

On the last Friday of the month at 15:15, using next month's expiry: buy 1 call 300 points above ATM, sell 2 calls 600 above, buy 1 far call as a wing. Skip if the debit is above 1% of capital; if the credit is above 1%, move strikes up 100. Target +2.5%, stop −3% of capital, exit by day 19.

How was the Monthly 1:2:1 call ratio spread 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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