LEARNING & INSTRUCTIONS

MODULE
Please go through this module to understand how to get
started, read our disclaimer and also to get more information
about options trading and the AlgoGrow Strategy.
 DISCLAIMER

By participating, using and trading using the AlgoGrow strategies you agree to the disclaimer in this email.

Disclaimer: AlgoGrow is a business vertical of Source91 Network Pvt Ltd (hereafter known as the 'Company') that markets trading algorithms. All payments and fees paid to Source91 Network Pvt Ltd.
and / or related entities, associates and individuals for the use of AlgoGrow are non-refundable. The Company, its Directors and Associates do not provide trading tips nor are we investment advisers.
Our service is restricted strictly to marketing, deployment and maintenance of our automated trading application algorithms. Trading options including algorithm based trading are volatile. Please do your
own due diligence before using our algorithms. Trading in the real market involves real financial risk.
The Company reserves the right to authorise other companies or entities to market the AlgoGrow algorithms. There is always the potential of loss when investing / trading in any financial asset including through
the use of algorithms. AlgoGrow, its advisors, its trainers, its related companies/ entities and their Directors (Source91 Network Pvt Ltd and / or other companies / entities that may market the AlgoGrow
strategy / other entities associated with the AlgoGrow strategy), its algorithm creators, or any other individuals associated with it are not liable for any financial losses incurred by anyone including from
participation in our WhatsApp and Telegram groups. AlgoGrow, its trainers, related entities/companies and anyone associated with the operation or marketing of the algorithms will not be liable for your
personal or emotional well-being or for any other negative impact the use of the algorithms may have on you. We also assume no responsibility for any actions, activity or trades that cause loss. Please do your
own due diligence before trading. We are not SEBI registered. Our algorithms use the Tradetron platform (or other platform) as a service provider. We do not have control over the Tradetron platform or any errors
by it which can lead to unpredictable results. There may also be errors in the brokers’ API interface which may lead to losses in trades over which we have no control over. Algorithms may be based on back-tested
data but we do not provide any guarantee for their performance in future. The algorithm running in an automated system is agreed with the user prior to deployment and we do not take any liability
for any loss generated by the same. Past performance of advice /strategy / model does not indicate the future performance of any current or future strategy / model or advice by AlgoGrow (and its related
entities/companies) and actual returns may differ significantly from that depicted herein due to various factors including but not limited to impact costs, expenses charged, timing of entry / exit, timing of
additional flows / redemptions, individual client mandates, specific portfolio construction characteristics, market dynamics etc. There is no assurance or guarantee that the objectives of any strategy / model
or advice provided by AlgoGrow (and its related entities/companies) will be achieved. AlgoGrow or any of its associates or related entities, partners or Directors / Principal officers / employees / algorithm
creators do not assure / give guarantee for any return on the investment in strategies / models / advice given to an Investor or anyone using the algorithms. The value of investment can go up / down
depending on factors and forces affecting markets. By using our algorithm strategies, you understand that they may be optimised / edited from time to time as decided by our team and associates.

By joining our WhatsApp Group or any other communication channel or by signing up for the use of our algorithms, you fully understand and agree to the contents of this disclaimer as outlined above.
 3 STEPS TO GET STARTED WITH THE
ALGOGROW WEALTH BUILDER COMMUNITY PROGRAM & LIVE TRADING

STEP 1: Go through this Learning Module, tradetron setup (you can create account using this link https://www.tradetron.tech/?ref=ytjknwr7),
and the disclaimer (folder titled STEP 1)
STEP 2: Create your FREE brokerage account & complete API binding. You can use Shooniya / Kotak (tougher account creation and API binding)
OR create an account with Alice Blue (discounted brokerage) using our referral
(folder titled STEP 2).
Or you can use any broker of your choice.
STEP 3: Subscribe to the AlgoGrow strategy & go live. Congratulations. You are all set. (folder titled STEP 3).

This document is for educational purposes only.

 What is options trading?
Options trading is a financial strategy that involves buying and selling
contracts that grant the holder the right, but not the obligation, to buy or
sell an underlying asset at a predetermined price within
a specific timeframe.

It allows investors to speculate on price movements, hedge against risks,

and potentially earn profits from market fluctuations.
 What is the difference between
options trading and share trading?
Options trading and share trading are two different methods of investing in the financial markets.
Share trading involves buying and selling shares of individual companies, representing ownership in the
company, with profits or losses determined by changes in the share price.

On the other hand, options trading involves buying and selling contracts that grant the holder the right,
but not the obligation, to buy or sell shares at a predetermined price within a specific
timeframe, allowing investors to speculate on price movements, hedge against risks,
and potentially earn profits from market fluctuations.
 What is a PUT and a CALL
in options trading?
In options trading, a PUT is a contract that gives the holder the right,
but not the obligation, to SELL an underlying asset at a predetermined
price within a specific timeframe.

On the other hand, a CALL is a contract that grants the holder the
right, but not the obligation, to BUY an underlying asset at a
predetermined price within a specific timeframe.
 Why is selling options on
expiry day lucrative?
Selling options on expiry day can be lucrative for certain traders due to the
rapid decline in time value as options approach expiration.

As the time value diminishes significantly, options sellers can buy back the
contracts at a lower price, potentially profiting from the difference between the
premium received and the lower buyback cost.

However, it's important to note that options trading involves risks, and not all
traders may find this strategy suitable for their risk tolerance and
market outlook.
 What is backtesting?
Backtesting is a process used in finance and investing to evaluate
the performance of a trading strategy or investment approach using
historical market data.

It involves applying the strategy to past market conditions to assess

how it would have performed in the past, providing insights into its
potential effectiveness and risks.
 What is paper trading?
Paper trading is a simulated form of trading where investors practice
buying and selling financial assets without risking real money,
allowing them to test trading strategies and gain experience in a
risk-free environment.
 What is algo trading?
Algorithmic trading, often referred to as algo trading, is a method of executing trades
in financial markets using computer algorithms. In this approach, pre-programmed
instructions or rules are set to automatically analyze market data,
identify trading opportunities, and execute buy or sell orders without
the need for human intervention.

Algo trading aims to leverage speed, accuracy, and efficiency in order placement,
leading to potentially improved trading outcomes and reduced trading costs. It is
commonly used in various financial instruments such as stocks, futures,
options, and currencies.
 What is automated trading?

Automated trading is a method of executing buy or sell orders in

financial markets using pre-programmed algorithms that automatically
analyze market data and execute trades without human intervention.

It aims to eliminate human emotions, increase trading efficiency, and

enable the execution of multiple trades at a high speed.
 What percentage of trading
in USA is automated?
It is estimated that automated or algorithmic trading accounted for
approximately 70-80% of the total trading volume in the United States.

This substantial percentage reflects the growing popularity and

adoption of automated trading systems among various market
participants, including large financial institutions, hedge funds, and
individual traders.
 What is Tradetron?

Tradetron is a technology platform that facilitates algorithmic

trading and automated investing.

It allows users to create, test, and deploy trading strategies or

investment models without the need for extensive
programming knowledge, making it accessible to both
professional and retail traders.
 What is API binding?

You will need to set up a broker account (eg. Zerodha, ICICI etc). API
binding refers to the integration of a platform (Tradetron) with the broker
enabling strategies on Tradetron to be executed by the Broker.
 What Strategy is
followed by AlgoGrow?
AlgoGrow uses a STRADDLE STRATEGY which is an options trading strategy where an
investor simultaneously buys a call option and a put option with the same strike price
and expiration date for the same underlying asset.

The straddle allows the investor to profit from significant price movements in either
direction, as the call option benefits from price increases, while the put option benefits
from price decreases.

This strategy is commonly used when the investor expects high volatility in the
underlying asset but is uncertain about the direction of the price movement.
 How many Trades are taken a
day in the AlgoGrow strategy:
4 trades are taken a day as part of the straddle strategy.
This is broken up into:
Selling Options- a PUT and a CAll,
and Buying Options - A PUT and a CALL.
 How often does the
AlgoGrow strategy trade in a week?
Currently only Tuesdays (FinNifty expiry) and Thursday (BankNifty expiry). As the Indian
trading ecosystem evolves, more days of trading are expected. Nifty expiry trading will
most likely start from September and trading on the other days will hopefully start soon
after that.
Get ready for a power-packed trading week with
SIX major indices expiring each day.
◊ Monday - Midcap
◊ Tuesday - FinNifty
◊ Wednesday - BankNifty
◊ Thursday - Nifty
◊ Friday - SENSEX & BANKEX
 What is Stop loss?
Stop loss is a risk management tool used in trading to automatically
sell a security when its price reaches a predetermined level, aiming
to limit potential losses.

It is a popular strategy to protect investments from significant

downturns in the market while allowing traders to stay disciplined in
their risk management approach.

The AlgoGrow strategy has a stop loss in place.