Daily Straddle Heatmap

AlgoTest heatmaps make it easier for you to understand a clear picture of your trading performance. These heatmaps visually represent data like time, performance metrics, and win rates. Think of them as a map highlighting where your strategies work best and where they stumble. For example, a heatmap might reveal that trades during certain hours of the day consistently yield higher profits.

We are taking four heatmaps today. Let’s understand what we can learn from them.

1. Nifty Short Straddle:

  • Insights:
    • Best Time: 12:45 with a profit of 19,046.
    • Worst Time: 09:16 with a loss of -24,923.
    • Optimal SL Range: 40 to 60, showing consistent positive results.
  • Observation: Nifty performs better in the midday intervals, with heavy losses in the opening sessions.

2. Finnifty Short Straddle:

  • Insights:
    • Best Time: 11:15 with a profit of 6,725.
    • Worst Time: 09:16 with a loss of -4,675.
    • Optimal SL Range: 50 to 60, showing balanced performance across multiple intervals.
  • Observation: Finnifty has steadier results across the day, with 11:15 to 12:15 showing the highest profitability.

3. Midcap Nifty Short Straddle:

  • Insights:
    • Best Time: No significant profitable time intervals; most results are negative.
    • Worst Time: 09:16 with a loss of -10,388.
    • Overall Performance: Losses dominate across all SL ranges and times.
  • Observation: Midcap Nifty seems unsuitable for this strategy due to consistently poor results.

4. Bank Nifty Short Straddle:

  • Insights:
    • Best Time: 14:15 with a profit of 3,308.
    • Worst Time: 09:16 with a loss of -10,924.
    • Optimal SL Range: 50 to 60, delivering positive returns in later intervals.‍
  • Observation: Bank Nifty shows a late-session recovery, suggesting the strategy performs better in the afternoon.

‍You can also check heatmaps for MidCapNifty, Nifty, BankNifty, and FinNifty across different dimensions to better understand market trends.