This product is about positional trading in Equity Futures where all the trades would have time frame of 20 to 30 days.
This product is suitable for positional traders, hedger who wants to hedge in Equity or the one who would like to take benefit from long and short trade of Equity stock or Index.
Trades would be given different pair of Stocks or Index. The trades could be one Long and one Short. Long trades are where we buy first and sell at higher price, here we believe prices to rise and short trades are where we sell first and then buy at a lower price, here we believe prices to drop.
The Trades would be generated from in-depth Technical analysis of the price, trend-structure, support-resistances, correlation and “p” value.
Risk: Reward is another major criteria which is taken into consideration and we strive to make traders comfortable and at ease by providing low risk high reward trade.
The risk: reward for this product shall be 1:1 for first target and 1:2 for second target.
With respect to number of open trading positions, at any point of time we shall have a maximum of 4 open positions. And therefore the ideal Margin required to participate in this product shall be 12-15 lakh. Traders can take trades in multiple lots based on their capital size but for reference calculation purpose we shall show Profit and Loss based on one lot of trade.
- What is Power of pair?
Power of pair is the products in which we buy one stock future and sell other stock future generally form the same sector with horizon of 20-30 days. Even for the index also we can apply this strategy
- From which universe stock is selected?
We looks for the suitable risk-reward criteria, correlation between the stocks with hedging objective. Stock must be out of Ban period.
- What is the maximum number of open trades?
- What is Risk-Reward criteria?
Risk –Reward for stock is 1:1 and 1:2.
- What is Margin Requirement?
Margin requirement for the product is 12-15 lakh.
- Is it necessary to trade in all recommendation?
Yes to match with our P&L one has to trade in all recommendation.