BUSTED BY COSTS

₹25 momentum option buying with a strategy-level loss cap backtest: does it work after costs?

We coded the ₹25 momentum option buying with a strategy-level loss cap strategy exactly as taught in a public video and ran it on NIFTY weekly, 2019-02 to 2026-10, with real charges. Our test: ₹39,000 after real costs. With fills exactly at the trigger price we beat the claim, but with realistic fills and costs the same window made about ₹24k and the rules lose in 2024–26.

Net after costs: ₹39,000
Win rate: —
Worst drawdown: −₹1.36 L
Reality Score: 29/100

The rules, as taught

Every day at 09:16 pick the call and put whose premium is closest to ₹25 (5 lots each). Each leg is bought if it rises 10% from that price, with a 30% stop that trails ₹2 for every ₹5 gained, no re-entry. Whole strategy: ₹1,000 max loss, ₹10,000 max profit, lock ₹1,000 once it is reached. Exit 14:30.

What the video claims, and what we found

Claim: About ₹94.5k from Jan to mid-Jul 2025, max drawdown about ₹20k.

Filling at the exact trigger price with no costs we got ₹1.17 L vs their ₹94.5k for Jan–Jul 2025; with next-minute fills, broker charges and slippage it fell to ₹23.7k. Entries are on momentum spikes, so buying exactly at the trigger price is not realistic.

See the full results, charts and every trade

Questions people ask

Does the ₹25 momentum option buying with a strategy-level loss cap strategy work?

Not as taught, once real charges are included. With fills exactly at the trigger price we beat the claim, but with realistic fills and costs the same window made about ₹24k and the rules lose in 2024–26. Tested on NIFTY weekly, 2019-02 to 2026-10, after real costs. Reality Score 29/100.

What is the win rate of the ₹25 momentum option buying with a strategy-level loss cap strategy after costs?

We did not count a per-trade win rate for this one; the net result after real charges was ₹39,000 with a worst drawdown of −₹1.36 L.

How much did it make or lose in the backtest?

Our test: ₹39,000 after real costs. Over 2019-02 to 2026-10 (5 lots per leg, as in the video), the net after charges was ₹39,000 and the worst fall from a peak was −₹1.36 L.

What exact rules were tested?

How was the ₹25 momentum option buying with a strategy-level loss cap 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.