Managed Account Services
**Consent form is at the bottom after you have read all the details.
Every month we have limited slots available for Options MAS for which clients put in request through consent form.
Options MAS is discretionary method of trading where our proprietary trades are replicated in client's account. Minimum Capital required for Options MAS is 15 Lakh. It is discretionary positional trading system over weekly Index Options. All trades are replicated to clients account through Algorithm.
Returns of Options MAS Till Date
How Does this work?
We open your Trading Account with a preferred broker and set it up for Algorithm. All the trades are taken through Algorithm Software Blitz.
Client funds his account with 15 Lakh. It is client's account. Client does not have to put money in someone else's account.
Whatever trades are executed in our proprietary trading account are replicated to clients account.
At the end of month i.e. monthly expiry, we share the profit/loss status with clients.
1. How can we trust you with Options MAS ?
Whatever trades we take in our own account, same trades in different quantity is replicated to client's account. So if we are in loss, you are in loss and if we are in profit, you are in profit. So our interests are aligned. Since a lot of clients avail our service, it is not possible for us to trade differently in different accounts. Human Mind can only do so much. So all trades are same.
2. Why is the minimum capital requirement at 15 Lakh?
We never put 100% capital in 1 trade. We generally deploy 20% capital in one trade. We trade specifically in Nifty and Bank Nifty Options on carry forward basis. We do not trade intraday. For Intraday trading, we have Algorithms. This is discretionary trading where we decide based on market analysis on what to do next. We start with 20% capital and money is deployed in phases. We assume that we can be wrong from the start and hence we require extra capital to manage the positions. If the positions go right from start, we keep adding position slowly or manage accordingly. Also, options trading is about selling options. We need money to fight the adverse situations that can arise out of the unknown. Hence the requirement of 15 Lakh as bare minimum.
3. Do I have to transfer 15 Lakh to someone else's account?
No. Its your account. You fund your own trading account. You have full access to it. We only have authorization to take trades through Algorithm.
4. How is Carry Forward positions safe in Options MAS?
We only trade in hedged overnight positions. Secondly we have a proper risk management and position sizing in place while deploying the strategies. We deploy money in phases. We have extra money available for firefighting purposes. Given how volatile the market is, probability of profit is still high as we are the sellers. Its not like we don't incur losses. We can have a losing week but a winning month. Losing month but a winning quarter. Losing quarter but a winning year. Its all about right position sizing and risk management that we follow.
5. What is the maximum loss that an account can incur?
We have a worst case scenario at -10%. Yes it has happened to an account through mistake in past in September 2020. We made sure it never happened again.
In worst case scenarios:
Maximum loss we expect any month can be -3% to -4%.
Maximum loss we expect any week to be -1% to -2%.
Mark to Mark loss for a week can touch -2% to -3% easily given how volatile the markets are.
This is not a guaranteed profit thing. if anyone is promising guaranteed profits then its absolutely fraud.
6. Who should not opt for Options MAS?
---You don't have any other source of income
---Took a loan for trading in stock market
---Do not have an appetite for loss as losses will happen and so does the profit
---If you are rattled by every positive or negative news in market
You have to understand we know what we are doing. We can have a losing week but a winning month. A losing month but a winning year.
7. What broker is recommended for Options MAS?
Preferred broker is Nirmal Bang. www.nirmalbang.com
8. What are the brokerage charges?
Nifty - 11/lot for options
Bank Nifty - 9/lot for options
9. Why cant you chose broker of your choice?
We need a central setup to work for clients. A single place from where we can send orders through Algorithm. In case of problem at broker or exchange, a single point of contact to resolve the issue. A dedicated RMS in case of problem. Nirmal Bang ticks all the right boxes.
10. What is required from client side during Options MAS?
Once the account is setup and funded, no intervention is required from client side. At the end of day, you receive SMS with detail of trades in a link. It is required for clients to accept the trade confirmation which takes total 2 minutes.
Occasionally we might incur intraday loss due to hedging or adjustments. In that case ledger needs confirmation on mail from client side.
11. Why is Options MAS difficult?
We expect clients to judge us on 1 year period and not a week or month or a bad quarter.
Most people do not understand the psych behind trading. There is an emotional / psychological / mental drain in trading process which increases exponentially even when trades are copied.
If you still have queries, you can message me on Telegram at t.me/rkatwal
Now that all the information is conveyed, if interested you can fill the form given below: