Frequently Asked Questions

  • What is STAIRS?

    STAIRS is a proprietary positional trading system. It is based on a simple trend following strategy that captures the trends over an hourly time frame

  • Which instruments does STAIRS trade?

    STAIRS trades the Nifty and BankNifty Indices currently

  • How can I use the STAIRS trade signal to trade Index futures or options?

    STAIRS is a system designed on the SPOT indices. So one can use the signal generated on the SPOT system to trade Indices on futures or options as per your choice. Many use the STAIRS signal to add on their own studies in the direction of the signal.

  • Who is this product suitable for ?

    This product is suitable for busy professionals who do not wish to spend the full day watching the market and who would like to trade the indices few times a week based on dominant trends. Since the trade updates are only at some specified times in the day (details in on-boarding mail) , it requires under 5 mins a day or less to manage this position. It is also a good hedge for your conventional portfolios for down years like 2018.

  • What leverage is used in STAIRS performance calculations?

    STAIRS uses a leverage of 3X at all times. You can chose to trade at higher or lower leverage also as per your liking. If you are a conservative player, you can chose a leverage of 2X. A leverage of 4X or more is very very risky.

  • What stop loss can be used after a position is in play?

    STAIRS uses a price and time based decision system so it will wait out till the targeted time frame is complete along with price adhering to the model level to enter or exit the trade. For users who may feel vulnerable without a stop in the system, use a two day high or low as a stop as an emergency measure. So if we go long today use the previous two day low as a emergency stop (if u like) and vice versa for shorts.

  • Is the system always in play?

    Yes the system is always in play. So the model will always be long or short the index at all times. There are variations to the same that many practitioners are using. Like some users book half quantity or trail the stops as per their own additional systems that they superimpose on this basic system.

  • What are the likely returns from this system?

    The past many years of backtest indicate returns in the range of -20% to +100% on Nifty and -30% to +200% on BankNifty. These returns may or may not be replicatable in the future. In essence NO SPECIFIC guarantee on returns can be made on the returns. The futures or options markets remain a high risk environment with potential of complete loss of capital as well.

  • Can there be a deviation in performance of Spot indices vs futures?

    There can be a minor deviation as futures trades at premium or discount to the spot. However with 70% or so of the capital sitting in liquidbees earning risk free returns , the deviation as well as operating costs for futures are well within this additional income so that the net returns will be similar to that of the SPOT strategy.

  • What happens when there is a gap in the trade against the position?

    The system will take care of gaps in the analysis and deal with it accordingly.

  • What is the time frame used for the analysis in the STAIRS system?

    The STAIRS system uses an hourly time frame for analysis.

  • How are the trades disseminated to the users?

    The trades are broadcast on a Telegram Channel. There will be a broadcast only when there is a trade. There can be many occasions of no change in trade for days together. There are two Telegram channels, one of which is a free access that updates the trades on a end of day or week basis and a paid channel for subscribers that has the trades updated LIVE. Immediately the google sheets that record the trade history are also updated within minutes. So you can get notified about a new trade from two sources.

  • What support is available for users?

    A less than 24 hour turnaround support is available on email at niftytrader@gmail.com We would like to request all users to refer to the FAQ before sending in any query for support.

  • What is the capital needed to run STAIRS?

    If you are going to run 2 Nifty lots (150 *10000 = 15Lacs notional, you will need 5Lacs as base capital at 3X). In addition if you run 2 BN lots (40*25000 = 10 Lacs notional you will need another 3.3 lacs at 3X) . These are suggested capital requirements.

  • What is the absolute minimum capital needed to run STAIRS?

    If you are going to run 1 lot of Bank Nifty only (say BN at 25000) (20 *25000 = 5Lacs notional, you will need about 1.75 - 2 lacs as base capital at 3X).

  • What is the expected drawdown in this strategy?

    Historically a drawdown of 20-30% is common every now and then. Sometimes even 50-60% drawdown is also possible if market gets very choppy.

  • What is the worst loss possible in STAIRS?

    The unexpected worst case scenario of two consecutive market lower circuits in a row when if we were trading 3X leverage in opposite direction can wipe out the entire capital.

  • Why don’t we trade at higher leverage when the Exchange allows us?

    The system assumes we can be in a 20% overnight limit down scenario any day if we were long and a 3X leverage still gives us some remaining capital to build back the account.

  • How to use options with this strategy?

    You could trade in the direction of the signal using naked long calls or puts or build bull or bear spreads. The exact strategies are beyond the scope of this product.

  • Are the strategy rules disclosed ?

    No, since the system is a proprietary one and hence the rules are not disclosed. If you really want to mirror this kind of simple strategy you can look at Supertrend or a ATR strategy which are very very similar.

  • How can I participate in this strategy?

    There are quarterly and annual subscription options available.

  • What are the subscription charges for the half yearly subscription?

    For the Half Yearly subscription an amount of INR 12000 is charged (payable half yearly) plus GST. At the end of the 6 months, you will be automatically charged for the next 6 months. You can chose to opt out at any time by sending email to niftytrader@gmail.com.

  • What are the subscription charges for the annual subscription?

    The annual plan is payable at INR 18000+GST. At the end of the 12 months, you will be charged INR 18000+GST automatically as renewal. You can choose to close the subscription at any time.

  • What happens after I join as a subscriber?

    An invite will be sent to you to join the paid subscribers list on the telegram app on the phone number you provided in the KYC. An onboarding mail containing the link to the GoogleSheet and the link to the Systems and Procedures document is also enclosed. The signal will be broadcast live during market hours on this channel at specific hours of the day. Additionally access will be provided to a LIVE google sheet that will have all the trades of the current calendar year and summary of historical performance.

  • How many trades are usually done in a month /day?

    On each index, on average the trades done are 2-5 in number per month. In very rare cases will a single day have two signals.

  • How to position size for my trade?

    Let’s say you want to do both Nifty and Bank Nifty trades and let’s assume you are a very conservative trader not willing to go beyond 2X leverage. At near 25000, for each lot of BN you need about 5L notional or 2.5 capital(at 2X) and for each NF future say at 10500 (75*10500) or a notional of 7.8lacs or capital of 3.9 lacs (at 2X). At 3X leverage the capital should be 1.6L and 2.7L respectively.

  • How can I cancel my subscription ?

    Subscription can be cancelled anytime. Just send an email to niftytrader@gmail.com mentioning the same from your registered email ID and last 4 digits of your saved credit card. The service is non refundable.

  • What is the Service Guarantee ?

    There is a service guarantee of minimum 8% annualized returns with the annual plan. Refer to the link here https://www.stairs2profits.com/stairs#guarantee

  • Can i only pay by Credit Card ?

    Yes, the auto renewal payments can only be made by domestic credit card. An alternate payment link for debit cards/ bank /NEFT arrangement can be availed by writing to niftytrader@gmail.com

  • How will I know when the signal comes?

    The signal will only be updated at specific pre defined times of the day. The average trades per month is only 5 so the PAID telegram channel notification on your mobile can be your alert to check the channel for any change of signal. Additionally the live google sheet will also be updated within minutes of the trade signal for the model portfolio trade. You can set a email notification on the googlesheet as well. Details are sent in the on-boarding email about this.

  • How much of my equity exposure should I allocate to this strategy

    We think to start with you should not allocate more than 10% of your equity exposure to a derivatives strategy

  • Why are you not disclosing the strategy rules ?

    The strategy, as I have maintained always, is NOT important. Implementation with proper position sizing is. As long as the user is diligent in executing the trades, he/she will reap the benefits of gradual compounding and discipline.

  • Do i have to follow the model trades?

    No the model portfolio is just ONE way to use the signal. It simply uses the relevant futures instrument at 3 times leverage and trades it in the "Always-in-trade" mode. You can use the signal to generate your own way of booking part profits, or pyramiding up the trend, or using exotic options based strategies.

  • Alternate to seeing the percentage gain on initial capital can you give an idea based on points on a per lot basis only?

    All our performance metrics is based on initial capital deployed. So if 10 lacs was base capital and return mentioned is 172 pct, then net profit of model pf at end of year is 17.2 lacs. While exchange allows upto 7-8 times leverage on margin we only recommend 2-3 times. If you wish to use constant lots , you can also look at points generated during the year... for example for 2018 CY around 9300 point on banknifty and 2800 on nifty were generated

  • I don't have a credit card. How may i subscribe?

    While credit card auto subscription is desirable to keep manual steps at a minimum, we will try to facilitate those without a card also. Please contact me at niftytrader@gmail.com for a Bank payment link. An additional amount of INR 1000 as processing will be applicable. Total amount will be INR 15340.00 for Half Yearly and INR 22420.00 for the annual plan

  • The performance is tracked based on SPOT prices. But we trade futures contracts that can have premium and discounts and transaction costs. How much deviation in performance can results due to this.

    1. The strategy is usually equally long and short during the year and hence premium and discount are in favour or against most of the time nullyfying any net impact. 2. Also the 70 odd percent of idle capital kept in liq bearing instrument generates net near 3.5% capital per year which is not taken into account in our performance, that negates any impact of transaction cost or difference due to premiums or discounts. 3. Since people use the signal in many ways adding their own layer entry exit rules or combination of exotic options strategies, we limit our models to spot basis only.

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