The 920 straddle strategy involves selling two options (a call and a put) at 9:20 AM, usually for Indian indexes like Nifty or Bank Nifty. You set a stop loss (like 25-30%) to limit losses if the market moves too much. The goal is to make money from daily market moves, as long as they’re not too big, by collecting the money from selling options. It’s simple, so many traders liked it.
Why It Became Popular
The strategy got popular because:
- It’s Easy: You just sell options at 9:20 AM and set a stop loss, so it’s good for busy people.
- Works in Stable Markets: When markets didn’t move too much, it made steady profits.
- Easy to Automate: Computers could handle it, which appealed to tech-savvy traders.
Some traders made good money with it. For example, one report said traders using bots earned about 85% to 100% returns.
Why It Stopped Working
After 2020, the strategy didn’t work as well because:
- Markets Got Crazy: Big swings in the market often hit stop losses, causing losses.
- Too Many Traders Used It: With so many people doing it, the profits got smaller.
- Stop Hunting: Some believe others pushed prices to hit stop losses on purpose.
By 2023, many traders said the strategy was “dead.” Some tried tweaking it, like starting at 9:30 AM or using smaller stop losses, but it wasn’t as good as before.
How It Changed Trading Tools
The strategy’s popularity and problems led to new trading tools in India. These tools help traders do the strategy better or try new ones.
Stoxxo: Placing Trades
Stoxxo is a tool for making trades fast. It likely supports the 920 straddle with:
- Quick Trades: Places trades right at 9:20 AM.
- Complex Options: Handles selling both call and put options together.
- Works with Other Tools: Connects to platforms like TradingView or Python.
Stoxxo probably grew to help traders do strategies like the 920 straddle smoothly.
Algotest: Testing Strategies
Algotest lets traders test strategies using past market data. It helps with the 920 straddle by:
- Checking History: Shows how the strategy would have worked before.
- Free Tests: Gives free credits to try it out.
- Improving Plans: Helps tweak stop losses or timing.
When the strategy stopped working, Algotest likely became popular for testing fixes.
Stockmock: Practicing Trades
Stockmock is a tool to practice trading without real money. It supports the 920 straddle with:
- Practice Mode: Lets you try the strategy safely.
- Strategy Building: Helps create and test plans.
- Automation: Some videos show how to automate the strategy with Stockmock.
Stockmock probably grew because traders wanted to practice the strategy before risking money.
How the Strategy Shaped These Tools
The 920 straddle strategy helped make these tools better by:
- Pushing Automation: Its timing and rules needed tools like Stoxxo to automate trades.
- Needing Tests: Its problems after 2020 made tools like Algotest important for checking strategies.
- Helping Practice: Its complexity led to tools like Stockmock for safe practice.
- Adapting to Change: Market changes pushed these tools to add features for new strategies.
Table: How Tools Help with the 920 Straddle
| Tool | What It Does | How It Helps with 920 Straddle | Role in Trading |
|---|---|---|---|
| Stoxxo | Places trades | Fast trades, handles complex options, connects to other tools | Does the strategy in real markets |
| Algotest | Tests strategies | Checks past data, offers free tests, improves plans | Tests and fixes the strategy |
| Stockmock | Practices trades | Simulates trades, builds strategies, supports automation | Practices the strategy safely |
The 920 straddle strategy was a big deal in India, but it stopped working well after 2021. Its rise and fall helped create tools like Stoxxo, Algotest, and Stockmock. These tools make it easier to trade, test, and practice strategies, helping traders deal with tricky markets. They’ll likely keep improving as trading changes.
