A custom option strategy builder is a highly useful feature for options traders looking to ace the markets and craft their own unique strategies. It lets you choose from multiple options contracts, fine-tune strike prices and expiration dates to suit your unique preference, and set ideal position sizes.
Custom strategy builder by Dhan comes with a user-friendly interface and solid visualisation tools like P&L graphs to understand your risk-reward ratio with one look and develop a unique winning options trading strategy for yourself.
How to Use the Custom Strategy Builder to Unleash Your Trading Potential?
Here’s a step-by-step guide to using a Custom Strategy Builder if you are an options trader:
#1 Choose the Underlying Asset you Want to Trade
Open the strategy builder in your trading app. Select ‘Options’ from the list. Next, you will see the strategy builder interface before you.
#2 Select the Strike Price
Click on ‘Add New’ to customise your strategy. Here you will set the strike price in sync with your trading goals and market outlook.
#3 Implement Readymade Strategies
Use the ‘Fast Create’ option at the bottom of the ‘Add New’ Section if you want a quick strategy. Choose from the range of tried and tested option strategies. The feature is useful for a beginner looking for a starting point or an experienced trader looking for a pre-built strategy.
#4 Build Your Own Custom Options Strategy
Determine whether you want to go long, short, or both. Accordingly, evaluate the strategy on candlestick charts, measure the payoff, and finalise your options trading strategy.
Why Should You Use a Custom Options Strategy Builder?
A custom options strategy builder can elevate your trading efficacy and empower you to choose and tailor winning strategies. You can do so by combining multiple options and parameters based on your unique preferences. Some of the benefits of a strategy builder include the following:
#1 Access to Real-time Payoff Graphs and Table
Your options strategy builder grants you access to real-time payoff graphs which show the potential profit and loss for your customised strategy. The visualised representation helps you understand the risks and rewards, and make strategy decisions accordingly.
The P&L table presents a breakdown of the potential gains and losses for a strategy you have chosen or customised. The builder also lets you see the maxim profit or loss and the breakeven price for your strategy to help you determine the price levels at which your strategy would become profitable.
#2 Pre-built Strategy Templates by Experts
Custom strategy builders also allow you to leverage the pre-built strategies designed by seasoned traders and experts. The builder has a selection of popular strategies for F&O stocks and tradable indices divided into Bullish, Bearish, and Neutral categories.
#3 Informed Decision-making Using Utility Tools
Custom strategy builders like Option Trader Web by Dhan provide utility tools like Strategy charts and strategy Greeks. A strategy chart lets you view the strategy’s performance at all price levels and across different market scenarios.
Strategy Greeks like Delta, Gamma, Vega, and Theta are essential for options trading. These Greeks help to determine how sensitive a strategy is to changes in factors like stock price, implied volatility, and price decay.
Concluding Remarks
A great custom strategy builder tool will help you analyse, build, and execute options trading strategies from a single platform. Dhan’s Online Options Trading Platform ticks all the boxes and is one of India’s best platforms for trading options.
What are you waiting for, then? Unleash your true trading potential with Dhan’s Options Trader and navigate the world of options trading with ease.
