In the high-stakes arena of commodity trading, traders and investors are perpetually on the lookout for strategies that not only promise substantial returns but also stand the test of volatile market dynamics. 

Among the plethora of trading strategies, the Halliday Strategy, pioneered by Kapil Jadhav, has carved a niche for its methodical approach towards deciphering price action in commodity markets. The journey of the Halliday Strategy from a manual model to a fully automated, fully hedged version embodies the evolutionary trajectory of modern-day trading methodologies, infused with sophisticated financial models and technological advancements.

Genesis: The Manual Model

The Halliday Strategy was initially conceptualized as a manual trading model by Kapil Jadhav. The linchpin of this model was ‘price action,’ a trading technique that entails analyzing historical price data to forecast future price movements. 

By meticulously studying price charts, patterns, and other related indicators, Jadhav aimed to gauge market sentiment and make informed trading decisions.

Transition to Automation: A Quantum Leap

The turning point in the Halliday Strategy’s odyssey came when it transitioned to a fully automated, fully hedged version. This metamorphosis was fueled by the integration of complex financial models tailored to dissect price action patterns and comprehend global volatility. 

Current Notable Models:

The GARCH (Generalized Autoregressive Conditional Heteroskedasticity) Model:

Utilized to analyze and forecast financial market volatility, aiding in the precise estimation of hedging parameters for the automated strategy.

The Black-Scholes Model:

Employed to evaluate options pricing, which became a new frontier for the Halliday Strategy given the high arbitrage opportunities inherent in options trading.

The Stochastic Volatility Model:

Employed to capture the stochastic nature of volatility, providing a more nuanced understanding of price dynamics across global commodity markets.

Current Account Performances

As of November 17, 2023, IIFL’s standard API does not accurately represent commodity data. This limitation is evident in major Indian trading platforms like Sensibull, which do not display position data for IIFL’s commodity trades. Consequently, this discrepancy also affects the verified profit and loss mechanisms as the commodity positions disappear there. 

To showcase the mobile video is to establish trust, as the IIFL app is less susceptible to manipulation due to its incompatibility with rooted devices. Furthermore, the visibility of account numbers in the app invites open verification. Should any doubts persist, feel free to reach out to us. For your assurance, a nominal fee can be arranged for our time, and we’ll gladly provide a live demonstration via TeamViewer.

Synthesis of Price Action and Advanced Financial Models
 The strategy now not only engaged in spot trading of commodities but also delved into options, capitalizing on the price discrepancies and volatility inherent in these derivative instruments.
Diving into Options: Unveiling Arbitrage Opportunities:
With the automated version of the Halliday Strategy now in full swing, the exploration into options trading commenced. Options, with their potential for high arbitrage, presented a lucrative avenue for the Halliday Strategy to further optimize its profitability. 
Capital Requirement
The strategy now not only engaged in spot trading of commodities but also dived into options, capitalizing on the price discrepancies and volatility inherent in these derivative instruments. From the live accounts provided, it can be easily seen to have an account size of around 40 lakhs to effectively implement these strategies. This recommendation is due to the significant profit potential in commodity options arbitrage, which demands substantial margin requirements, albeit for a brief period around expiry. Additionally, hedging in commodities also necessitates a larger margin.

Why Halliday

The “Halliday” strategy is christened in homage to the fictional character James Halliday from the novel “Ready Player One.” Much like Halliday’s intricate and well-thought-out OASIS universe, this trading strategy embodies a realm of complexity and depth. 

It requires a keen understanding and a strategic approach to navigate successfully. The name reflects the meticulous planning and the blend of creativity and analytical thinking that are quintessential to both Halliday’s virtual world and the nuanced realms of trading. 

Just as Halliday’s creation was not just a game but a reflection of his genius and understanding of his world, so too is the “Halliday” strategy – a testament to the intricate dance of numbers, trends, and predictions in the financial markets.

At Unofficed, we maintain a select few strategies as proprietary, not open to the public, to preserve our competitive advantage. The Halliday strategy is among these exclusive methods. Given the relatively lower liquidity in the commodities market compared to the stock market, the impact on account profit and loss can be significantly pronounced. 

For insights into the effectiveness of this strategy, one can review the trades we’ve posted on Tradingview or explore discussions in the commodity channel of our trading forums. Additionally, clients who utilize our automated trading services and meet the necessary capital requirements have the option to automate the Halliday strategy in their accounts.