OPEN-SOURCE SCRIPT
Trading Capital Management for Option Selling
Trading Capital Management for Option Selling
This Pine Script indicator helps manage trading capital allocation for option selling strategies based on price percentile ranking. It provides dynamic allocation recommendations for index options (NIFTY and BANKNIFTY) and individual stock positions.
Key Features:
- Dynamic buying power (BP) allocation based on close price percentile
- Flexible index allocation between NIFTY and BANKNIFTY
- Automated calculation of recommended number of stock positions
- Risk management through position size limits
- Real-time INDIA VIX monitoring
Main Parameters:
1. Window Length: Period for percentile calculation (default: 252 days)
2. Thresholds: Low (30%) and High (70%) percentile thresholds
3. Capital Settings:
- Trading Capital: Total capital available
- Max BP% per Stock: Maximum allocation per stock position
4. Buying Power Range:
- Low Percentile BP%: Base BP usage at low percentile
- High Percentile BP%: Maximum BP usage at high percentile
5. Index Allocation:
- NIFTY/BANKNIFTY split ratio
- Minimum and maximum allocation thresholds
Display:
The indicator shows two tables:
1. Common Metrics:
- Total BP Usage with percentage
- Current INDIA VIX value
- Current Close Price Percentile
2. Capital Allocation:
- Index-wise BP allocation (NIFTY and BANKNIFTY)
- Stock allocation pool
- Recommended number of stock positions with BP per stock
Usage:
This indicator helps traders:
1. Scale positions based on market conditions using price percentile
2. Maintain balanced exposure between indices and stocks
3. Optimize capital utilization while managing risk
4. Adjust position sizing dynamically with market volatility
This Pine Script indicator helps manage trading capital allocation for option selling strategies based on price percentile ranking. It provides dynamic allocation recommendations for index options (NIFTY and BANKNIFTY) and individual stock positions.
Key Features:
- Dynamic buying power (BP) allocation based on close price percentile
- Flexible index allocation between NIFTY and BANKNIFTY
- Automated calculation of recommended number of stock positions
- Risk management through position size limits
- Real-time INDIA VIX monitoring
Main Parameters:
1. Window Length: Period for percentile calculation (default: 252 days)
2. Thresholds: Low (30%) and High (70%) percentile thresholds
3. Capital Settings:
- Trading Capital: Total capital available
- Max BP% per Stock: Maximum allocation per stock position
4. Buying Power Range:
- Low Percentile BP%: Base BP usage at low percentile
- High Percentile BP%: Maximum BP usage at high percentile
5. Index Allocation:
- NIFTY/BANKNIFTY split ratio
- Minimum and maximum allocation thresholds
Display:
The indicator shows two tables:
1. Common Metrics:
- Total BP Usage with percentage
- Current INDIA VIX value
- Current Close Price Percentile
2. Capital Allocation:
- Index-wise BP allocation (NIFTY and BANKNIFTY)
- Stock allocation pool
- Recommended number of stock positions with BP per stock
Usage:
This indicator helps traders:
1. Scale positions based on market conditions using price percentile
2. Maintain balanced exposure between indices and stocks
3. Optimize capital utilization while managing risk
4. Adjust position sizing dynamically with market volatility
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que la republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como asesoramiento o recomendaciones financieras, de inversión, de trading o de otro tipo proporcionadas o respaldadas por TradingView. Más información en Condiciones de uso.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que la republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como asesoramiento o recomendaciones financieras, de inversión, de trading o de otro tipo proporcionadas o respaldadas por TradingView. Más información en Condiciones de uso.