This product is suitable for positional traders, hedger who wants to hedge their commodity risk or the one who would like to take benefit from long and short trade of commodity.
This product is about positional trading in commodity where all the trades would have time frame of 20 days.
Trades would be given in different commodity pairs like Gold/Silver, Lead/Zinc, and Aluminium/Zinc etc. 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 2 open positions. And therefore the ideal Margin required to participate in this product shall be 5 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 Doublet?
This is a product in which recommends one Long commodity future and short other commodity future for the time horizon of 20-30 days.
- Which are the technical parameters used to Select Commodity?
We looks for the suitable risk-reward criteria, correlation between the Commodities with hedging objective.
- What are the maximum numbers of open trade?
The maximum numbers of open trade are 2.
- What is Risk-Reward criteria?
Risk –Reward for Doublet is 1:1 for 1st Target and 1:2 for 2nd Target
- What is Margin Requirement?
Margin requirement for the product is 5 lakh.
- Is it necessary to trade in all recommendations?
Yes to match with our P&L one has to trade in all recommendations.