Nifty Iron Fly Strategy Backtest

Nifty Iron Fly Option Strategy Backtest | For monthly income executed by market makers and professionals to earn consistent money with limited risk.

Short Iron Butterfly Parameters
Sell ATM Call & Put, Buy OTM wings for protection
Call Wing
ATM + offset (Buy protection)
Current: ATM + 50
Put Wing
ATM - offset (Buy protection)
Current: ATM - 50
Quick Presets
Understand Iron fly Metrics

Why Focus on Break-Even Zones and Risk/Reward?

Misleading Metrics (Wrong for Iron Butterfly):
• Looking only at max profit ignores risk
• Ignoring break-even points hides exposure
• Price multiples don’t reflect credit received
Correct Metrics (Right for Iron Butterfly):
• Define upper and lower break-even points
• Show max profit zone at short strikes
• Highlight risk vs. reward clearly
📋 Calculation Example:
Short Call Strike: 18000
Short Put Strike: 18000
Credit Received: 250
Upper BE = 18000 + 250 = 18250
Lower BE = 18000 - 250 = 17750
Max Profit Zone = At 18000 (ATM)
Risk = Spread Width - Credit Received
🎯 How to Use These Metrics:
  • Break-Even Awareness: Know where losses begin
  • Profit Zone: Identify the ATM strike as max gain
  • Risk Management: Compare credit vs. spread width
  • Trade Evaluation: Use return % to judge efficiency

Total PnL

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Expectancy

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Max Profit

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Max Loss

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Win %

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Loss %

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Avg Win

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Avg Loss

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Max Win Streak

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Max Loss Streak

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Max Drawdown

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Recovery Days

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Yearly Monthly PnL
Year JanFebMarApr MayJunJulAug SepOctNovDec Total PnL Total Trades MDD
Yearly Weekday PnL

This table shows how profits and losses vary by weekday across different years. Use it to spot recurring patterns (e.g., stronger Mondays, weaker Fridays) and evaluate trade timing discipline.

Year Mon Tue Wed Thu Fri Sat PnL Trades
Trades
Symbol Spot Entry Spot Exit Spot Δ Entry Date Entry Day Exit Date Exit Day Expiry Strategy
Strikes SC/LC/SP/LP
SC Entry (Sell)
LC Entry (Buy)
SP Entry (Sell)
LP Entry (Buy)
Net Credit Entry
SC Exit (Buy)
LC Exit (Sell)
SP Exit (Buy)
LP Exit (Sell)
Net Debit Exit
Strategy High Max Value
Strategy Low Min Value
DTE
PnL Credit − Debit
Max Profit = Credit
Max Loss Width − Credit
Profit Zone Lower → Upper
Spread Width Call / Put
Risk Capital
Equity Cumulative
DD Drawdown
Traders Pick
What happens Today if Yesterday Nifty closes above 1%? What happens Today if Yesterday Nifty closes below -1%? What happens Today if Nifty gap-ups open above 1%? What happens Today if Nifty gap-down open Below -1%? What are returns if I buy on 2% 3% 5% 10% 20 Dip ?
Expiry Start and End Analysis
Nifty Expiry to Expiry Analysis What happens on Nifty 1st day of Expiry ? What happens on Nifty 1st 2 days of Expiry ? What happens on Nifty 1 day before Expiry ? What happens on Nifty Expiry day ?
Weekday Analysis
Monday Analysis Tuesday Analysis Wednesday Analysis Thursday Analysis Friday Analysis

"The temptation to “make back losses quickly” is the root of most blowups. Revenge trading in options is especially dangerous."

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