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MoneyDhan > Our Products > Black Box Alpha Short Term
BlackBox Alpha Short Term
10%+ from derivatives without leverage is easy
01________________Features
Short-term Derivatives for cash flow, using direction neutral Hedge strategies

The reverse Gear

If long only Equity is a car, it is missing the reverse gear. Black Box Alpha is that missing reverse gear. Derivatives can go short, Buy protection against downside, Write calls options etc… 

10% per year expected

Without Leverage, expected return is just 10% or above, per year. DrawDown never exceeds 10% of capital. Hedge Strategies are Direction Neutral and Moderately safe.

Held till Expiry

This is not Intra-Day trading. F&O positions are kept until expiry without churning. Intention is to keep number of trades executed between 4 to 8 per month. This keeps transaction cost tiny.

02________________Model Portfolio
Five Lakh model Portfolio Track Record
03________________Strategy
Street Smart Marwari guys taught us the strategy. We made a product out of it.
When expected return from derivative is 10% to 13% per year, the risk exposure is very limited.
Black Box Alpha generates positive returns especially when equity is falling. Thus, minimizing the overall dip in your account balance.

Covered Call / Covered Put

Sell Deep OTM nifty call against the equity portfolio as hedge.
or ,
Shorting Nifty future and selling ATM Put as “covered Put” to gain in down trend. Covered Put gives limited profits with no downside risk.

Put Writing

An income generating strategy from OTM Put sell. Also, Writing Puts is used to to Purchase Stocks at lower levels. Deep OTM Put strikes are chosen. Detailed Explanation by Investopedia Click

 

Bull or Bear Spread Credit writing

Hedge strategy used to earn limited profit. Safe from Blackswan event.
After determining the probability of a price “Not” coming, we go for credit writing spread.
Very well explained by Zerodha Varsity

04________________Purpose of BlackBox Alpha ?
Second source of income using stocks and MF as collateral.
You don't always have to invest cash for derivative trading. Your stock broker is allowed to provide Margin against your holdings.

Hair-Cut

For every asset that you put up, you receive margin after a ‘haircut’. For example, if you collateralize funds worth ₹10 lakhs, the exchange might give you a margin of ₹8 lakhs for derivative trading, the difference of two lakhs is kept by the exchange to protect itself from market downsides. This is referred to as a ‘haircut’.

We use the margin to execute very conservative derivative strategies. People buy risky mid/smallcap stocks in hope of 20% CAGR. Blackbox gives us the freedom to buy safe large cap stocks only.
05________________Past Result
Real People. Real Result along with Capital Gains reports. This works!
1) When equities fall, Black Box Arrests the fall. 2) In sideways market, this generates cash flow. 3) During bull run, Gets out of the way.
Real Performance
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06________________more information
Here are some more details

What is the minimum investment ?

The minimum investment is ₹5 lakhs and we invest majorly in index options, futures and equities.

Who should choose Black Box Alpha?

This suits someone who already holds an Existing Portfolio & Seeking additional cash flow against this holding.

The portfolio can be existing Stocks or Mutual Funds (exclude ELSS).

Broker provides margin against holdings. We use this margin To generate additional cash flow from Derivatives.

Risk takers who volunteers to see a drawdown upto 20% on capital.

Not suited for retired personnels with no other source of income.

Is derivative trading risky?

Futures and options have an inherent risk because of the leverage built into derivatives. However, derivatives also help you control your risk using different types of hedging techniques.

Am curious but, enlighten me more.

We understand derivatives is an notorious product due to its leverage.

We do not use beyond 50% leverage while derivatives provide you with 900% leverage.

This is not a simple product to understand at one glance. We request you to drop a “HI” on our whatsapp. Our Request for a call back via our Contact US Page

07________________Connect Us
Money matters, needs talks
Connect with us. Talk to us. Ask the most harsh questions. Since we don't earn anything upfront, we are shamelessly blunt and honest.
08________________Result First Business Model
Its Free to Hire us

10 Thousand for every 1 lakh profit.

Capped at 2.5% of Asset Under Management.No time limit. We risk our reputation, commit our time & resources upfront - until you see 1 lakh profit. If you paid us 30 thousand it means, you made 3 lakh profit.
09________________Capital Gains Report
Performance
Capital Gains Report is an authentic proof.
Each person receives an personalized Portfolio. Even though our stocks are similar ; The portfolio allocation, stock exposure, its purchase price and timing of entry varies for every individual. This is done keeping in mind your personal Financial goals. Except for Tax loss harvesting benefits, we do not churn portfolio. This saves your brokerage and other transactional charges. A true Long term Equity portfolio in every sense.
  • Mr.Seshadri

    Mr Seshadri is a SEBI registered Investment Advisor himself. 20 years Risk Head at IL&FS Securities. He hired us to explore how we operate. Our business model seemed quiet attractive to him. Seshadri sir, gave us 5 lakh to a year. With a mandate to beat nifty.
  • Mahesh

    Mahesh is a CA from Pune.
  • Mr. Kush

    Trusted us with 20 Lakh at first go itself. After checking on our progress, he was kind enough to add another 10 Lakhs into his own Demat Account, which we manage.
  • Mrs. Shruthi

    Mrs Shruti opened Demat Account in February Month 2020. A question was raised by an enquiry recently. How did the account perform, which was opened in February month. February saw all time high for Nifty. In March, due to covid 19, Nifty crashed by 30%.
  • Mr. Shubham

    Mr Shubham is from Delhi. A young Financial Market enthusiast who is working for a US based Mortage Lender. Objective here is to accumulate amount for his retirement and provide some cash flow for monthly expenses. We are good at managing various risk so that the portfolio Stays steady and grows consistently.
  • Mr. Gala

    Mister Gala is a Marwari businessman, with deep pockets, for high-risk tolerance. We implemented a directional, long-only, leveraged,...
  • Mrs. Swathi

    Last 1 year (Jan 2019-2020) performance for a mother of two kids. Earning a decent salary.
  • Mr. Sukhdev

    Mr. Sukhdev is the one person who has seen our worst numbers in his account. Faced Il&FS crisis, 2019 election , Tax reform rally, 2020 budget crash and march covid crash
10________________Derivatives are Unqiue
Derivatives product are rarely available
Successful professionals in derivatives generate more than 30% per year consistently. They don't indulge with public advisory.
People do not have access to professional Derivatives traders. Unlike Stock pickers who are quiet famous.

Lack of Access

Public gets access to professional Stock pickers via Mutual Funds or Portfolio Management Services (PMS).

Similar Access is not available for professional Derivatives strategiests.

No pooling of capital

Stock portfolio managers from Mutual Fund or PMS get the privilege to pool your capital into a single account. This brings ease of capital management to professionals.

Derivatives professionals cannot pool capital into single account. It must be done on individual Trading Account basis. This is tedious to manage and monitor for a manager.

Not worth it

We know professional derivatives strategists who can generate 30% or above consistently per year. These people don’t go through the hassle to manage others money.

We have launched BlackBox Alpha product with aim to generate somewhere between 10-15% per year only.

08________________OnBoarding
Am convinced. How to Start?
  • 1. Connect UsWe will understand your profile.
  • 2. Know Your Customer DocumentsWe need some soft copies that verifies your identity.
  • 3. Agreement between you and usThe agreement mentions your risk profile, the kind of guidance, mode of guidance, service cost etc.
  • 4. Assign us your broker accountShare us the details. Funds in your account. Existing Holdings if any. Capital Gains report etc..
  • 5. We reach out with our email/SMS/Whatsapp etc You execute the trades in your own demat account
  • 6. Share your performance reportsOnce every month share us your Holdings and Capital Gains report.
We request 1% of Asset Under Advisory (AUA) upfront. Say 5 thousand upon 5 Lakh capital. At year end, this is adjusted against the profit share of 10%. Assume you gain 50 thousand profit upon 5 lakh by year end. 10% of 50 thousand is 5 thousand
8 _____OnBoarding
Am Convinced. How to Start?
  • 1. Connect UsWe will understand your profile.
  • 2. Know Your Customer DocumentsWe need some soft copies that verifies your identity.
  • 3. Agreement between you and usThe agreement mentions your risk profile, the kind of guidance, mode of guidance, service cost etc.
  • 4. Assign us your broker accountShare us the details. Funds in your account. Existing Holdings if any. Capital Gains report etc..
  • 5. We reach out with our email/SMS/Whatsapp etc You execute the trades in your own demat account
  • 6. Share your performance reportsOnce every month share us your Holdings and Capital Gains report.
We request 1% of Asset Under Advisory (AUA) upfront. Say 5 thousand upon 5 Lakh capital. At year end, this is adjusted against the profit share of 10%. Assume you gain 50 thousand profit upon 5 lakh by year end. 10% of 50 thousand is 5 thousand