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Overnight ATM long straddle (Fridays) backtest: does it work after costs?

We coded the overnight atm long straddle (fridays) strategy exactly as taught in a public video and ran it on NIFTY weekly, 2017-01 to 2026-10, with real charges. Our test: ₹2.19 L after real costs. Over 2017–2026 the as-taught Friday rules made about ₹2.19 L per lot, but almost all of it came in 2024–26 and 2020 lost about ₹71.5k.

Net after costs: ₹2.19 L
Win rate: —
Worst drawdown: —
Reality Score: 62/100

The rules, as taught

Buy the ATM call and put (strike by spot) at 09:20 on Fridays, 1 lot each. Each leg has a 20% stop, the position has a ₹8,000 max loss, and whatever is left is sold at 09:45 the next trading day.

What the video claims, and what we found

Claim: About ₹1.89 L net on 1 lot from Jan 2024 to May 2026, 112 trades, 37.5% wins.

On their own window and cost settings we got ₹1.80 L vs their ₹1.89 L (−4.5%), 114 vs 112 trades and 37.7% vs 37.5% wins; the year split differs because they appear to size 2024 at today's lot.

See the full results, charts and every trade

Questions people ask

Does the Overnight ATM long straddle strategy work?

Partly. Over 2017–2026 the as-taught Friday rules made about ₹2.19 L per lot, but almost all of it came in 2024–26 and 2020 lost about ₹71.5k. Tested on NIFTY weekly, 2017-01 to 2026-10, after real costs. Reality Score 62/100.

What is the win rate of the Overnight ATM long straddle strategy after costs?

We did not count a per-trade win rate for this one; the net result after real charges was ₹2.19 L with a worst drawdown of —.

How much did it make or lose in the backtest?

Our test: ₹2.19 L after real costs. Over 2017-01 to 2026-10 (1 lot, historical lot sizes), the net after charges was ₹2.19 L and the worst fall from a peak was —.

What exact rules were tested?

Buy the ATM call and put (strike by spot) at 09:20 on Fridays, 1 lot each. Each leg has a 20% stop, the position has a ₹8,000 max loss, and whatever is left is sold at 09:45 the next trading day.

How was the Overnight ATM long straddle 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.