TripleInt’s Services based on Option Trading System and Systematic Trading Plan
TripleInt offers a high performing Option Trading System based on ten years of research combining the art and science of technical analysis and trading psychology. This along with a disciplined approach to money management, provides an integrated trading system. TripleInt’s systematic trading plan focussing on NIFTY and Stock Option trades gives a better edge.
The complete working of TripleInt’s Option trading System is described in the SYSTEM page.
Based on trade signals generated out of TripleInt’s Option Trading System, the following is the execution plan.
a. Options are only BOUGHT and NEVER SOLD
b. Confined to the following trades only
Long Strap and
With majority of the trades confined only to Long Call and Long Put above
a. No Selling of options
b. No margin requirement
c. Max risk confined to the premium paid at any point in time
d. Time, volatility shrinking and price moving in a very tight band are against the position when options are bought. So timing the entries and exits become crucial as options held keep diminishing in value during such times.
Risk and money management
a. 2% risk on any open position
b. 6% risk for the month
Averaging of options
a. The general opinion about averaging is that it is deadly and pyramiding (adding on to positions only when it moves into profit zone) is considered good trading.
b. Always knowing what one is doing is much more important than adhering to any ad hoc rule of the book
c. There will be times where averaging would become a wonderful strategy, near market turns, advantage being the stop losses become much closer and profit potential increases to a large extent when the expected turn of the markets happen.
d. Ed Seykota said, “The trend is your friend expect when it bends at the ends”. Knowing when it is going to bend will also prove to be a great trading opportunity when the position is averaged.
e. Warren Buffet said, “Be greedy when everyone is fearful and fearful when everyone is greedy”. Averaging or initiating a fresh position at those points prove to be the best trades for option buyers.
f. Again, TripleInt’s Option Trading System should support the trade under all circumstances. The indications of averaging or to close the trade is always obtained from TripleInt’s Option Trading System.
TripleInt’s Systematic Trading Plan (TSTP)
The core premise of TripleInt’s option trading methodology is based on TripleInt’s Systematic Trading Plan. The advantages are listed below
a. Start trading with a low capital of Rs.30,000 a month
b. Assumption is that you have 12 months and so a capital of Rs.3,60,000 is available for trading. The biggest advantage of TripleInt’s STP is that the entire capital is never required in one shot. Start with a capital of Rs.30,000 for the month. At the end of the month, if the month is profitable, then the next month can be traded with the same capital of Rs.30,000 with no additional capital requirement for the month! The option of bringing in additional capital to trade for the next month is left to the subscriber and TripleInt currently is not suggesting compounding on a monthly basis. If the month is profitable, then there is no need to bring in additional capital and that additional capital will be generating bank interest.
c. If the month is at a loss, then some capital needs to be brought in fresh, only at the beginning of the next month (similar to Systematic Investment Plan schemes of Mutual funds). Again complete Rs.30,000 is not required to be brought in the next month. Since we confine the worst loss for a month to 6% which is (6% of 3,60,000) Rs.21600. This becomes the max capital to be bought in even after a terrible month loss of the full 6% (which generally will not happen as again tighter risk management strategies of per trade risk is taken under control)
d. The biggest advantage of this strategy will be during the winning streaks. Assume a profit of Rs.7500 is made per month for four consecutive months, then at the end of three months (without compounding), we sit with a profit of Rs.30,000 without bringing in any additional capital apart from the initial Rs.30,000 ! The remaining capital will be generating additional bank interest.
When the going gets tough, the tough gets going !!
Let us face the reality.
Trading is a zero-sum game (more so a negative-sum considering the brokerage, STT, ST, other expenses etc.,) and whatever we gain we are taking profits only from someone who is also in the game to take profits.
However smart our system is, however smart a trader we are, we have to face the realities of drawdown, a losing streak.
If we are in the trading game, and if we assume all our trades will make profit for us, then the reality will prove to be harsh. No one wants to speak about these things. Many claim 90% success trades, but they never tell the remaining 10% will take away whatever has been gained along with some of the initial capital also.
One strategy cannot fit the market at all times. It cannot be completely made out of a black box system. Markets are moved by fear and greed of people and more of mass psychology is involved and that is why a super computer has not yet cornered the markets. It can of course aid in making decisions but it cannot or rather should not be making all the decisions. This is where along with the system, a trader’s experience also comes into picture.
TripleInt’s Option Trades combine the best of the system, evolved over a period of ten years along with the experience gained in reading bull and bear traps in intraday and end of day charts, combining with that proprietary technical analysis tools developed over the same period.
This when combined with the overall Risk and Money management strategies gives TripleInt’s Option Trading System a better edge when compared to others competing to make money trading options.
TripleInt’s Option Trading Strategy will help
a. Those who are willing to trade NIFTY and Stock options market with controlled risks.
b. Those who have a good deal of capital as mentioned to begin with. (NOTE: Trading requires capital and only with capital can risk be controlled. The tendency to trade with a small capital and make huge gains will never work out in the Options market. There are many experts waiting to take the money away from the one who comes in with that idea).
c. Those with the ability to stay disciplined and execute the trades.
d. Those who are looking for strategic approach to trading the options market.
Pay only for performance
TripleInt strongly believes that one should perform first before getting paid and when subscribers do not make money, there is no point in charging money for the service provided. The very intention of a subscription service is to make profits at the end of the day for the subscribers.
a. Many of the subscription services talk only about positive aspects of their service.
b. Many of the subscription services are providing the services to make money for themselves irrespective of whether the subscribers make profit or loss.
c. Many of the subscription services give multiple targets and claim the maximum profit, but none take ownership when the pick hits the first target and then goes to hit the stop loss. A clear exit price is not defined in many of the subscription services.
d. Many of the subscription services provide a free trial for a maximum period of a week.
e. Almost all subscription services charge the users beforehand.
TripleInt is not based on a subscription model in the above sense. The entry and exit criteria are clearly defined and are never ambiguous. TripleInt’s subscription model is purely based on Performance of the trades generated. If for the month, the trades have made profits, pay only after the end of the month and open up the subscription for the subsequent month.
If the trades have not performed, then the subscription for the next month is renewed free of cost.
This is a completely unique model, reiterating TripleInt’s commitment to Performance.