Dear Subscribers,
Today I am sharing with you another live trading experiment from my research desk. This is not a conventional smooth-equity strategy. It belongs to a very different philosophy of trading — the world of Extremistan.
Those who have followed my blogs know that I deeply believe in asymmetric trading opportunities — situations where risk is small but the upside can be disproportionately large.
This newly shared system falls exactly in that category.
📊 Strategy Details
Strategy Name: MNR 1OS 50 Stock Options (Option Buying Strategy)
Strategy Link:
https://tradetron.tech/strategy/9193085
Live Shared Code:007cec2d-34a4-4690-8f69-eaf0abf6f76c
⚠️ Capital Allocation Guidance
If at all you want to deploy this strategy, please do so only with 1% of your capital.
Let me repeat that again clearly:
Deploy only with 1% of your total capital.
Why?
Because this is an option buying strategy, and option buying operates under a completely different probability structure compared to option selling.
You may experience:
• Many small losses
• Few neutral periods
• Rare but explosive gains
This is exactly the nature of Extremistan style trading.
🌪 Understanding Extremistan
In normal trading systems, we expect steady profits and controlled losses.
But in Extremistan, the idea is different.
You accept:
Small frequent losses → in exchange for → occasional outsized gains
Think of it like planting many seeds in the desert 🌵.
Most may not grow… but one rainfall can create an unexpected oasis.
That single event can compensate for many previous small losses.
This strategy is designed around that concept.
🧠 Why I Share These Experiments
My journey as a Retail Algo Trader has always been about continuous experimentation.
Some strategies aim for:
• Stability
• Consistency
• Capital preservation
Others are designed for:
• Asymmetric payoffs
• Black swan opportunities
• Extreme market movements
This system belongs to the second category.
📌 Important Reminder
This strategy should never be deployed with large capital allocation.
Treat it as:
• A satellite strategy
• A small experimental allocation
• A 1% capital opportunity
If it works during a big market move, the payoff can be surprisingly good.
If it does not work, the damage to your capital remains very limited.
🌱 My Philosophy
In trading, survival comes from risk control, while wealth sometimes comes from asymmetry.
By combining both approaches, we create a system where:
• Core strategies protect capital
• Satellite strategies hunt for extraordinary opportunities
This is how I continue to evolve my trading framework.
🔗 Stay Connected
🌐 Website
https://retailalgotrader.technology/
📢 Join My Telegram Group for Daily Updates
https://t.me/+m84g54AGaAlhMjhl
Even if you do not deploy this strategy, I hope my blogs, experiments, and E-Books continue to provide useful insights for your trading journey.
Let us keep learning together from the greatest teacher of all — the markets.
Jai Hind 🇮🇳
Madhu Babu
Retail Algo Trader | Tradetron Strategy Creator
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