This algorithm trades NIFTY options using quantum mechanics-inspired calculations. It processes 1-minute data for ATM, ITM, and OTM options, calculating implied volatility and using time-series regression analysis. The strategy generates buy signals for calls when alpha > 0.8 with positive IV skew, or puts when alpha < 0.2 with negative IV skew, while considering volume ratios and energy stability metrics derived from Hamiltonian operators and wave functions.
## Risk Management
The algorithm implements strict risk controls: 30% position sizing per trade, price filters (₹20-200 range only), 35% stop loss, three-tier profit targets at 28%/56%/84%, single position limit (no overlapping trades), and market hours restriction (10:15 AM - 2:15 PM). It also validates data freshness (within 3 minutes) before execution to ensure trades are based on current market conditions.