How much returns can I make from Algo Trading ?

Algo trading is similar to running a business, it can also be compared to long term investing. The objective of Trading (Manual / Algo) is to make realistic returns that can easily beat most mutual funds and grow your capital in long term. So realistically one can make anywhere between 12% to 30% in Yearly ROI, depending on volatility throughout the year. Always remember - ALGO IS NOT MAGIC, Algo are simple trading strategies (like iron fly/iron condor/spreads) put in a system to automate their entries / exits & SL's.

When can I withdraw my profits ?

Usually it is recommended to re-invest your profits into trading, this will help you to scale up and use the power of compounding. If you still choose to withdraw your profits, you shall do that on 6 monthly basis. This is done to make sure that you have some decent profits to withdraw as more market cycles will pass by.

Although you should know that its your own DEMAT & you have 100% control over it, so you can choose to invest or withdraw at any moment.

How much capital is needed to start Algo Trading ?

All our algorithmic strategies are HEDGED OPTION SELLING STRATEGIES & they start in a NON-DIRECTIONAL manner, which means that they start from an Iron-fly or an Iron-Condor, and they automatically keep adjusting themselves as per the market movement.The capital needed to deploy such strategies is 1.2 Lakh Per Lot & The Minimum Lot Size Needed Is 5. So the minimum capital needed to start such ALGO is 6 Lakhs.

Is the profit guaranteed ?

Whether it's Stock Market or Any Other Business, if someone tells you that your "X" amount of profit is guaranteed, the first thing you need to do is - Run Away From Them. A simple report by SEBI clearly states that 90% retail option traders make losses. The main reason for these losses is - EXPECTATION OF QUICK MONEY. The objective of ALGO Trading is to make sure that your emotional involvement is "0" , which means - there is no place for FEAR, GREED or HOPE. So, in simple words - no one in this world can guarantee you any ROI, but ALGO makes sure that you follow a systematic trading approach for long enough to make consistent and realistic ROI as discussed above in FAQ 1.

Is it Ok if I forget to ACTIVATE my strategy ?

No, usually it's not favourable to miss any day of activation. WHY ? - Because market behaviour is uncertain & the possibility of missing out on favourable chunk of profits is always there. Activating your backtested ALGO system is equivalent to an SIP that you choose to do for long term with complete discipline in order to reap its benefits.

Will I start getting profits from first month itself ?

The answer to this can be a Yes & No. As a trader you have to understand that ALGO is not magic, it's just systematic set of trading rules that are automatically deployed. If the market conditions favour our algo strategies, then we might actually see profits right from the first month, but if the conditions are unfavourable then it might even take 1 or 2 quarters. Algo trading is a long term business, NOT A GET RICH QUICK SCHEME.

Is my loss pre-defined ? Is Algo Safe !

Definitely 100% YES ! All our strategies have a pre-defined MTM StopLoss of 0.9 to 1% (Max), so no matter what happens in the market, you will never loose more than 1% of your trading capital in any given day. As you might already know - Protecting your capital is the only kep to long term profits in trading - Algo does exactly that for you. Also, all our strategies are Intraday Hedged Option Selling Strategies, which means - you are never at a risk of unlimited loss, even in a black swan event or a broker error. As far as we can say - ALGO is safer than manual trading, primarily because it involves ZERO human emotions & only operates on Hedged Risk Defined - Option Selling Strategies.

Are the returns on my capital guaranteed ?

No, The returns are not guaranteed & as an informed trader, you should always stay away from people who commit guaranteed returns on your capital. 

Can I stop / pause my trading any time?

Definitely YES!

All your Funds are always held in your own broker account (IIFL Securities) & your funds are always accessible to you and only you. You can choose to Start / Stop / Pause your ALGO's at anytime.

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