OPEN-SOURCE SCRIPT

OR: Nifty Regime

NIFTY Regime Engine — Direction × Volatility × Risk

This indicator is a daily regime classification and execution framework for NIFTY options trading.

Instead of relying on price-only signals, the model combines three orthogonal dimensions:

1. Directional Bias

Normalized price displacement from EMA20 using ATR:

Captures trend strength in volatility-adjusted terms
2. Volatility Regime (RV Ratio)

Short-term vs long-term realized volatility:

Identifies compression (breakout risk)
Identifies expansion (active trend phase)
3. VIX-Based Position Sizing

India VIX is used to dynamically scale exposure:

Reduces size in high-volatility regimes
Eliminates trades in extreme conditions
What this solves

Most retail option systems fail because they:

Trade direction without understanding volatility
Sell premium in compressed regimes before expansion
Ignore position sizing entirely

This engine addresses those gaps by combining:

Direction + Structure + Risk

Outputs
Regime classification (Bullish / Bearish / Range / Breakout Risk / Skip)
Recommended position size (lots + %)
ATR-based strike mapping
Max loss estimation
Visual dashboard + alerts
Use case

Designed for:

Credit spread traders
Iron condor strategies
Systematic NIFTY option sellers

Open-source script

In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.

distinctSeahor20287

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

Open-source script

distinctSeahor20287