Comment on Opentrade - learn following star traders

Surendra Reddy commented on 24 Mar 2016, 09:14 AM

Nithin,

Can you please help to understand how this weight-age works.

1. is the weight-age % is margin amount used for the each position / value of the total position?
because
Margin for 1 lot NIFTY call option @ Rs. 10/- BUYING = 10 X 75 = Rs. 750/- (margin 750 = position value 750)
Margin for 1 lot NIFTY call option @ Rs. 10/- SELLING = ~ Rs. 40,000/- (marging 40K != position value 750)

2. if weight-age % is margin amount, is that % is of the total account capital OR is just used capital %?

just for illustration purpose, I am trying to take details of the one of the star I am following:

STAR Profile (Just changed the capital numbers )
====================================
Avg Capital : 5 Crore

Positions:

STOCK SYMBOL Type Price Weightage
NIFTY16MAR7500PE B 22.50 8.73%
NIFTY16MAR7700CE B 70.77 9.15%
NIFTY16MAR7800CE S 12.76 38.6%
NIFTY16MAR7400PE S 7.33 10.42%
NIFTY16MAR7600CE B 65.50 8.47%
NIFTY16MAR7500CE B 95.20 24.62%

>> As asked above, how this % works against capital?

FOLLOWER PROFILE
===================

Avg Capital : 50 Lakhs

Positions:
>> As a follower, how one should take positions with 50L capital to follow the above star?

How much capital is being used for the taken positions? what is the remaining money for future hedging purpose? because Star may have different strategy to get into hedging trade to protect his position. so that there will some reserved capital.

NOW NEW TRADES…
alerts with below msg.
EXited partial NIFTY16MAR7500PE
how do follower understand, partial means.

Final Request
I would request you to be in the follower’s shoes and explain detailed approach, how follower can get follow star by using this data.

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