I would like to share the way i trade short strangle strategy with an edge. Always try to enter with a direction in mind. Suppose you think market will go up then sell a put that is higher than the call value. So we will make money if market goes up or it is range bound.

In second scenario you think market will go down. Then sell the call that has a premium higher than the put you sell. In this case also you will make money if market goes down or rangebound.

In this way you will make money in 2 out of 3 scenarios. So your strategy will have an edge. But you will loose money when market moves against your http://direction.Here  stoploss come into picture. Always keep strict stoploss. I normally keep according to the risk i can take.

Also i keep an MTM stoploss. I normally keep 1.5-2% of my total capital as stoploss. If i see that much loss in my MTM i will exit all my positions and close my laptop. There is always another trading day.

Another important thing i normally watch is VIX. If i see a big jump in vix in 5/10 min interval then i just exit all positions. Also its better to avoid trading on days where vix is more than 2% higher.