Your idea: Build a historical backtest for this exact NIFTY 50 intraday options-b…

Build a historical backtest for this exact NIFTY 50 intraday options-buying strategy. Signal timeframe: 5-minute NIFTY 50 index candles. Trading session: NSE regular session, 9:15 AM–3:30 PM IST. Signal: * First candle closes below its open AND second candle closes below its open: buy ATM NIFTY PE. * First candle closes above its open AND second candle closes above its open: buy ATM NIFTY CE. * Evaluate only after the second candle has fully closed at approximately 9:25 AM. * If either candle is a doji or the two candles have different colours, skip the day. * Maximum one trade per trading day. Entry: * Enter at the first realistically executable option price after the signal is confirmed. * Use the closest available ATM strike based on the NIFTY spot/index level at entry. * Use the nearest eligible expiry with adequate liquidity. * Use historical option-chain and premium data, actual historical lot sizes, and realistic bid/ask spreads. Stop-loss and target: * Initial stop-loss: 10% below the actual option entry premium. * Initial gross target: 20% above the actual option entry premium. * Calculate net P&L after brokerage, STT, exchange charges, GST, stamp duty, slippage and other applicable costs. * Also calculate the target needed to achieve a genuine 2:1 net reward-to-risk ratio after estimated costs. Risk and sizing: * Maximum planned risk per trade, including estimated costs and slippage: ₹1,000. * Calculate per-lot risk as (entry premium − stop-loss premium) × historical lot size, plus estimated round-trip costs and slippage. * Number of lots = floor(₹1,000 / total planned risk per lot). * If one lot exceeds the budget, skip the trade. * Never exceed the ₹1,000 planned risk limit through position sizing. * Report any actual loss above ₹1,000 caused by gaps or execution slippage. Exit rules: * Exit on stop-loss or target, whichever is reached first. * If neither is reached, square off before market close. * Do not carry positions overnight, average down, or add to losing positions. Testing: * Use at least 3–5 years of reliable historical data, if available. * Prevent look-ahead bias and use realistic execution assumptions. * Provide the full trade log and report total trades, skipped trades, win rate, gross and net P&L, profit factor, maximum drawdown, average win/loss, largest loss, consecutive losses, monthly/yearly performance, and CE versus PE results. * Compare the fixed 10% stop-loss with 5%, 15%, and 20% in separate sensitivity tests. Clearly separate out-of-sample results from in-sample results. * State the data source, assumptions, costs, and limitations. * Do not claim that the strategy is profitable unless the results demonstrate it after costs.