u/helloimhello6688

It was a good day, the bot was able to take good trades hold it and end it in green.

Even though there are more losses at the end of the day I'm in green. I'm thinking of reducing losses by adding some new strategy. Any suggestions from your experience?

The OptionsAI system is a smart options trading bot built for Nifty and Bank Nifty that focuses on taking only high-confidence trades. Instead of relying on just one indicator, it combines chart analysis, options data, and overall market sentiment before entering a trade. The bot mainly works on 5-minute candles, but it also checks the 15-minute trend to avoid trading against the bigger market direction. It usually trades ATM or near-ATM options because they are more liquid and react well to index movement.Its decision-making works through a “Three-Bucket” system:

Technical Analysis – checks momentum and trend using indicators like RSI, EMA crossover, VWAP, and volume spikes.

Options Chain & Greeks – analyzes Delta, Implied Volatility, and Open Interest to see whether the option has strong movement potential and institutional participation.

Market Sentiment – tracks broader cues such as Gift Nifty, FII/DII activity, and global markets like the S&P 500 and Nasdaq.

A trade is taken only if at least two of these three areas agree and the confidence level is above 75%.

The system also has strong safety filters. It avoids trading during highly volatile or extremely slow markets using India VIX and ADX checks. It also skips the first 15 minutes after market open to avoid random price swings.

Risk management is a major part of the strategy. Every trade has a controlled stop loss and a target with at least 1.5:1 reward-to-risk ratio. Only a small portion of capital is used per trade, and if losses become too high for the day, the bot automatically stops trading. After multiple consecutive losses, it becomes more selective and enters a “Defensive Mode.”

Finally, the system includes a nightly learning process. At the end of each day, it studies which signals worked best and adjusts its thresholds for the next session, helping the strategy adapt to changing market conditions automatically. I've used AI to fix grammar and make it look good, thankyou.

Bot started running around 9:30, it was taking a lot of trades which ended up in loss, and with proper stop loss I was marking around 1.5k loss on most of the initial trades. Even though it was making profit in mid trades, since it's running on its own it won't stop the trade until it touches the profit mark, so it made most of the losses because of that problem. Afterwards in the afternoon it came back forward and took the PnL from the negative to the positive side. I felt like the market would be indecisive after that huge run, so I paused it manually.

I'm testing my algo trading bot with paper trading on the live Indian market, and when testing is done I'm looking forward to executing it with my own trading account.

Bot started running around 9:30, it was taking a lot of trades which ended up in loss, and with proper stop loss I was marking around 1.5k loss on most of the initial trades. Even though it was making profit in mid trades, since it's running on its own it won't stop the trade until it touches the profit mark, so it made most of the losses because of that problem. Afterwards in the afternoon it came back forward and took the PnL from the negative to the positive side. I felt like the market would be indecisive after that huge run, so I paused it manually.

I'm testing my algo trading bot with paper trading on the live Indian market, and when testing is done I'm looking forward to executing it with my own trading account.

Bot started running around 9:30, it was taking a lot of trades which ended up in loss, and with proper stop loss I was marking around 1.5k loss on most of the initial trades. Even though it was making profit in mid trades, since it's running on its own it won't stop the trade until it touches the profit mark, so it made most of the losses because of that problem. Afterwards in the afternoon it came back forward and took the PnL from the negative to the positive side. I felt like the market would be indecisive after that huge run, so I paused it manually.

I'm testing my algo trading bot with paper trading on the live Indian market, and when testing is done I'm looking forward to executing it with my own trading account.

Bot started running around 9:30, it was taking a lot of trades which ended up in loss, and with proper stop loss I was marking around 1.5k loss on most of the initial trades. Even though it was making profit in mid trades, since it's running on its own it won't stop the trade until it touches the profit mark, so it made most of the losses because of that problem. Afterwards in the afternoon it came back forward and took the PnL from the negative to the positive side. I felt like the market would be indecisive after that huge run, so I paused it manually.

I'm testing my algo trading bot with paper trading on the live Indian market, and when testing is done I'm looking forward to executing it with my own trading account.

I built this completely using Python and SmartAPI. Lately, it has been showing promise, but I’m still waiting for it to deliver more consistent results. On the last working day, it performed really well, and now I’m waiting for the next trading day so I can test it again.

For now, it doesn’t follow any well-known strategy. I’ve implemented some threshold-based criteria that felt right to me, and it operates based on that.

My father has been trading in the Indian market for more than 13 years and has been fairly successful. He trades manually, and it’s safe to say I got some inspiration from him. Around four years ago, I started exploring the markets and indices—learning how they work, what moves prices, and the factors that influence them.

I’ve traded manually myself before. I did make some money initially, but I lost it later. I wasn’t very consistent in tracking the market, but over time I’ve developed a decent understanding of what drives price movements. I’ve incorporated that understanding into the bot’s strategy.

I’ve cross-checked the data it generates, and it appears accurate. It uses real-time data from the live market.

It’s not that the bot doesn’t incur losses—it does—but overall, it has remained profitable for the past few days. I still encounter bugs occasionally, which I fix manually. Over time, the codebase becomes quite large, and even AI tools in free tiers struggle to handle it effectively.

Right now, I’m running it on a local server, but I plan to deploy it on a dedicated server so it can run continuously. After completing trades, the bot enters a “learning phase,” where it analyzes the trades taken during the day and learns from mistakes and patterns. It also sends me updates via Telegram—what it’s buying, when it bought, and other trade details. Additionally, it shares its view of the market for the day and notifies me when it exits a trade.

I plan to run it in paper trading mode for a few months. Once I’m confident in its performance, I’ll switch it to live trading.

I typed this myself and used AI only to correct a few typing mistakes.