DERIVATES TRADING STRATEGIES

DAILY RECOMENDATION OFFERING

Sandeep Nene

SALIENT FEATURES

CAGR of over 50% in 6 years April 2007 to

March 2013
Low Trading time Required maximum half an
hour per day
Two Options:

Profit Sharing - Fees Charged as a %age of

cumulative profit earned
Fixed Fee Fees Charged in Advance for
recommendation email

Needs Regular funds blockage of Rs 3 L / 1L (1

contract each), based on strategy selected
Performance of strategy tested over 6 Years
of Back testing

STRATEGY

A combination of moving averages, trending

indicators and a combination of innovative
stop losses to let profits run longer and cut
losses quickly
Avoids Overtrading

WHO IS IT FOR ?

For professionals who want to trade in F&O

but only have half an hour in a day to spare
for trading
Specifically 9.15 a.m. to 9.45 a.m. Every day

SPECIFICATIONS

A trading account with the F&O segment

activated is required
Strategies will be emailed before 7.30
a.m. the day of the trading
The suggested position needs to be taken
between 9.15 to 9.30 a.m. Everyday or
between 3.00 to 3.30 p.m. On expiry day
Profits will be charged as consultancy
charges based on option selected

BACKTESTING HIGHLIGHTS

Average Investment Rs 1 - 3 L (Based on

Strategy Selected)
Person Starting with funds of Rs 3 L on 1 st
April 2007 would have ended with Rs 18 L
on 31st March 2013

BACKTESTING HIGHLIGHTS ......

CONTD

THE MECHANICS

Recommendations will be mailed daily

before 7.30 a.m. every morning ,
detailing the position to be taken:
Future / Options; when Open / Close;
All Open time trades to be taken
between 9:15 9:45
All Close time trades to be taken
between 3:00 3:20

PROFIT SHARING OPTION

Based on Recommendation Open / Close Price will be Used

0.15% Brokerage for Futures and Rs 35 per contract for
options will be deducted from profits to be calculated
The calculation of profit will be done for 1 contract
This is irrespective of how many contracts you trade in 0,
1, 3, 5, 10 etc. (thus you if don't execute a trade you
will still be charged for 1 contract and if you trade
10 contracts you will still be charged for 1 contract)
20% of the above profits will be charged on and to be paid
within 5 days after then end of F&O expiry date each
month

ONE YEAR CALCULATIONS WITH

FUTURES

ONE YEAR CALCULATIONS WITH

OPTIONS

FIXED FEE OFFERING

For the fixed fee option, the fee will be

collected in advance and is essentially
is
the
fee
to
receive
the
recommendation for the period the fee
is paid for

GUIDELINES

The strategy needs to be executed at the times

mentioned or it may not work
The strategy is based on 1 contract , one is free to
trade more contracts, however the suggestion is to
maintain uniformity, e.g. 5 contracts for all scrip's;
don't use 1 contract for a certain trade and 5 for
another
All recommendations should be executed for the
strategies required
There will be losses and need to booked as and
when suggested

DISCLAIMERS

The strategy has been back tested for 6

years , however there is no guarantee
that the next 6 years will work similar
There are no guaranteed returns provided
in the offering
This is based on an appropriate mix of
Futures and Options, an only options
recommendation strategy can be
provided but may result in lower returns

Sandeep.nene@gmail.com