How We Turned a Losing Trade into a ₹32,000 Gain – Real BTST Strategy Breakdown

At Replete Equities, we believe that successful trading is not just about having the right strategy—it's about adapting that strategy in real-time when the market throws a curveball.

In this detailed case study, we’re pulling back the curtain on one of our recent Nifty BTST (Buy Today Sell Tomorrow) option trades, where we initially faced a loss. But through active management and contextual decision-making, we were able to convert it into a net ₹32,220 profit.

Let’s take you through the journey of how this trade unfolded and the powerful lesson it holds for any serious trader.

The BTST Trade Setup – Friday Morning

On Friday, we deployed one of our regularly tested delta-neutral strategies on Nifty options. The trade was taken around 9:30 AM, through our automated execution system integrated with the Stoxxo Intelligent Trading Bridge.

The idea behind this strategy was simple: take a balanced neutral position using Call and Put options and hold the trade through the weekend to benefit from increased volatility or gap movement in either direction.

At the time of entry, market conditions were suitable:

• Nifty was trading within a narrow range.
• Implied Volatility (IV) was moderately supportive.
• No major domestic news events were lined up during the day.

Everything was in sync for a safe, low-risk neutral strategy execution.

Trade Outcome During Market Hours

However, by 3:15 PM, a sharp movement in Nifty triggered the Stop Loss on the Call option leg. This left only the Put option active in the trade.

Now, according to our algorithm, once one leg is stopped out, the other continues to trail and exits based on predefined logic. But this time, we made a different call altogether—one that changed the outcome entirely.

Why We Intervened Manually – The Geopolitical Trigger

During the afternoon hours, reports started emerging of rising tensions between India and Pakistan. These headlines indicated a potential spike in geopolitical risk, which often leads to erratic overnight market behavior.

Rather than letting the algorithm run its course, we chose to take manual control of the trade based on our experience and contextual awareness.

What we did:

1. We squared off the remaining Put leg immediately to reduce exposure.
2. We then reconstructed the neutral position by buying a fresh Call and Put.
3. We decided to hold the new position over the weekend, anticipating a potential gap-up or increased volatility on Monday.
4. Plus, we remove the individual leg stoploss also so that it wouldn't trigger in the market opening itself.

This action wasn’t part of our standard algo protocol. It was a pure judgment-based call derived from years of experience in reading both market data and external cues.

Market Opens with a Gap-Up – The Reward of Smart Management

On Monday morning, our hypothesis played out exactly as expected.

Nifty opened with a strong gap-up, and the Call option from our newly constructed position spiked significantly. We booked the position shortly after the open, around 9:30 AM, locking in substantial profits.

Let’s look at the numbers:

• The initial strategy (before manual adjustment) had already hit a loss of ₹11,767.50.
• The newly adjusted neutral trade, thanks to the gap-up, delivered a profit of ₹32,220.00.
• Net Result: ₹20,452.50 gain in just two days.

The result wasn’t just about recovering a loss. It was about creating alpha by recognizing a unique situation and acting on it decisively.

Key Insights and Learnings from This Trade

This trade serves as a powerful reminder of an often-overlooked truth in algo-based trading:

Algos provide structure. Humans create the edge.

Our systems are designed to maintain discipline, reduce emotional interference, and capture routine opportunities. But the markets are not always routine.

When an unexpected event introduces non-linear risk, human judgment becomes irreplaceable.

This is not about abandoning algorithms. It's about enhancing them with context-driven decisions—especially during news events, volatility spikes, or geopolitical developments.

How We Teach This in Our Mentorship Program

In our flagship mentorship – Option Strategies: A Mentorship Program, we focus on far more than just back-tested setups. We mentor traders to:

• Build awareness of external factors that influence price behavior.
• Understand when and how to override algo signals for strategic adjustments.
• Integrate structured logic with flexible discretion.
• Recognize low-risk, high-reward entry points even after an initial trade fails.

This trade is a classic example of the value of strategic intervention. We didn't just avoid a bad outcome—we turned it into a rewarding one.

Conclusion: A Trade is More Than a Signal

Every trade is a story. And behind each successful story is a trader who not only understands strategies but also the art of adapting when it matters most.

While algorithms and systems provide efficiency, true consistency—and true alpha—comes when traders combine that efficiency with intuition, situational awareness, and confidence.

This BTST strategy breakdown is a testament to that philosophy.

If you're looking to master such an approach, where you don't just follow signals but understand when to trust your gut and act with clarity, then our mentorship is for you.

Want to Trade Like This?

You don’t need to reinvent the wheel. You just need the right roadmap and guidance.

👉 Click here to learn more about our mentorship program

💼 This BTST strategy is part of our Nifty Intraday Basket — a powerful collection of market-tested strategies designed to work across different market conditions. We deploy this basket live in our clients' accounts.

🎯 Want access to this strategy basket?
Just open a trading account with us, and we’ll help you deploy this strategy in your own trading basket — fully managed and supported by our team.

📲 Have questions? Contact us on WhatsApp and our team will guide you step-by-step.

Let’s grow your portfolio the smart, structured way.

About the Author

Sachin Sival is the founder of Replete Equities and a seasoned options trader with over 13 years of market experience. His expertise lies in building delta-neutral, risk-defined strategies that generate consistent income for retail and HNI clients alike.