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SENSEX 0.20-delta strangle sold after a 5% dip backtest: does it work after costs?

We coded the sensex 0.20-delta strangle sold after a 5% dip strategy exactly as taught in a public video and ran it on SENSEX weekly, 2024-05 to 2026-10, with real charges. Claimed ₹1.20 L. Reality ₹1.12 L. As taught, the rules made about ₹1.11 lakh per lot from May-2024 to Oct-2026 after costs, but only ₹3k in 2026 with a ₹40k drawdown.

Net after costs: ₹1.11 L
Win rate: 67.0%
Worst drawdown: −₹40,415
Reality Score: 76/100

The rules, as taught

Each weekday at 09:20, pick the 0.20-delta SENSEX weekly call and put and sell each leg only after its premium falls 5% from that price. Each leg has a stop at 3× / +300%, the whole position exits at a ₹5,000 loss, no re-entry, and everything closes at 15:15. Assumptions: lot of 20, delta from implied volatility, leg stop tested as +300%.

What the video claims, and what we found

Claim: About ₹1.2 lakh from Jun-2024 to Mar-2026 with 67% winners on ₹1 lakh capital, with costs shown as zero.

With the video's zero-cost setup we got ₹1.44 lakh versus its ₹1.20 lakh over the same window, with the same 67% win rate and the same bad months.

See the full results, charts and every trade

Questions people ask

Does the SENSEX 0.20-delta strangle sold after a 5% dip strategy work?

Partly. As taught, the rules made about ₹1.11 lakh per lot from May-2024 to Oct-2026 after costs, but only ₹3k in 2026 with a ₹40k drawdown. Tested on SENSEX weekly, 2024-05 to 2026-10, after real costs. Reality Score 76/100.

What is the win rate of the SENSEX 0.20-delta strangle sold after a 5% dip strategy after costs?

67.0% of trades made money after real charges in our test (2024-05 to 2026-10). A high or low win rate alone says little; the net result was ₹1.11 L with a worst drawdown of −₹40,415.

How much did it make or lose in the backtest?

Claimed ₹1.20 L. Reality ₹1.12 L. Over 2024-05 to 2026-10 (1 lot (20 units)), the net after charges was ₹1.11 L and the worst fall from a peak was −₹40,415.

What exact rules were tested?

How was the SENSEX 0.20-delta strangle sold after a 5% dip 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

Opens our backtester with this video's rules as taught, ready to run. Change dates or stops and see what happens. Default charges are used, so totals can differ a little from this page.

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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.