Generating 3 Lakh Per Month Passive Income with 1 Crore Investment: Practical Strategies for Capital Management
Many individuals and investors tend to believe that sustainable monthly returns from the market using derivatives are unattainable. However, as an experienced option seller, I respectfully disagree with this notion. This article will explore the strategies and systems I use to generate a consistent 7-figure passive income.
Introduction
Consistent passive income can be achieved with structured and disciplined trading strategies. Here, I share the passive income generation mechanisms based on a 1 crore investment. I have been implementing these strategies for the past 3 years, focusing on risk management and zero tolerance for risk.
System Overview
The core of my trading system lies in disciplined deployment and safe option strategies. These ensure consistent monthly income in a conservative manner. The system is built on five major pointers:
Candlestick Pattern
After rigorous backtesting of Nifty and Bank Nifty data over the past 17 years, I have identified 12 specific candlestick patterns that form the basis for my trade decisions. A trade is initiated only when any of these 12 patterns emerge.
Domestic News with DI Position
Tethering to domestic news is not advisable. Before any domestic announcements, such as those from the US Federal Reserve (Fed) or Indian government (FM), I ensure that all markets are closed. Additionally, I monitor significant domestic block trades by institutions.
Foreign News with Foreign Position
The impact of foreign news is also avoided. This includes any US inflation numbers or global events, along with large foreign investments from institutions like FII (Foreign Institutional Investors) and hedge funds.
OI Chain and Money Flow
Observing the Open Interest (OI) chain and money flow is crucial. Trades are often based on strike prices that are approximately 800-1000 points away from the spot. This ensures the capture of a modest but stable premium.
Statistical Distribution Curve Model
The statistical distribution curve model is a technical aspect that draws a probability bell curve, ensuring that trades are taken based on the least likely outcomes. For instance, Nifty falling 1000 points on expiry and Bank Nifty falling 2000 points in a day may happen, but it is highly improbable.
Trade Execution and Monitoring
Based on these five key points, I rarely trade, ensuring that trades are highly accurate with a win rate of over 95%. Only between 1-2 days a week are trades executed, with about 7-9 days in a month. This ensures a low-risk trading environment, as I am actively involved in the market for only a fraction of the time.
Case Study and Proof
As a testament to the effectiveness of this system, the profitability last year was impressive. If you are interested in replicating this success with a capital investment of at least 20 lakh, please feel free to reach out to me via WhatsApp at 9136682564.
In conclusion, through disciplined trading, risk management, and strategic deployment, it is possible to generate significant passive income from derivatives. This system has proven successful over the past three years, and with the right mindset and commitment, it can benefit individuals looking to boost their monthly earnings.