STEP 01
Start with market context
Review the broader market condition before evaluating individual trade information.
FALCON
TRADER'S COCKPIT
Quick Start
Recommended FALCON workflow
1
Read Context
Start with the broader market state.
2
Review Structure
Check profile, structure and Initial Balance.
3
Review Trade & Hedge
Study the trade information and applicable FALCON hedge structure.
4
Manage & Review
Apply your own risk process and review developments.
Manual Contents
Learn FALCON step by step
The manual follows the structured FALCON workflow, from understanding the market through trade planning, hedging, management and review.
01
Getting Started
Understand the FALCON workflow and the recommended sequence for analysing the market.
Open guide ↓
02
FALCON Cockpit
Learn how the cockpit brings market state, structure and trading context into one workspace.
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03
Market Profile & Volume Profile
Understand how profile information helps FALCON read participation, acceptance and important reference areas.
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04
Initial Balance
Learn how FALCON tracks the Initial Balance and how IB development contributes to session context.
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05
Confirmed Trades
Understand how Confirmed Trades fit into the wider FALCON workflow.
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06
Triggered Trades
Learn how to interpret a trade that has reached its defined trigger condition.
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07
Trade Management
Understand how FALCON organises subsequent trade developments and management updates.
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08
Telegram-Integrated News
Learn how integrated news adds context around market movement and existing trade plans.
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09
FALCON Hedging
Understand FALCON's high-intrinsic-value hedge methodology, 70%–75% qualification process and defined-risk framework.
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10
Risk & Responsible Use
Understand independent decision-making, personal risk limits and the limitations of information displayed by FALCON.
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Section 01
Getting Started
FALCON is designed as a structured trading workflow. Begin with the broader market environment before considering an individual trade.
STEP 02
Review market structure
Check Market Profile, Volume Profile, session structure and Initial Balance.
STEP 03
Review momentum and alignment
Determine whether momentum and broader directional information are aligned or conflicting.
STEP 04
Review Confirmed and Triggered Trades
Read trade information only after understanding the broader market context.
STEP 05
Review hedge information
Where applicable, evaluate the FALCON high-intrinsic-value hedge structure and defined-risk information.
STEP 06
Make your own decision
Decide whether the information fits your own trading plan, capital and risk process.
Section 02
FALCON Cockpit
The FALCON Cockpit brings market state and session structure into one organised workspace.
MARKET STATE
Trend
Provides a directional reading of the broader market environment.
MARKET STATE
Momentum
Helps describe the strength or weakness behind current price movement.
MARKET STATE
Trade Bias
Summarises the broader directional context within the FALCON workflow.
STRUCTURE
Gap
Shows the relationship between the current opening area and the previous session.
STRUCTURE
Opening
Describes how the current session begins relative to available market references.
STRUCTURE
Context
Brings together structural information to help interpret the current session.
Section 03
Market Profile & Volume Profile
Profile information helps describe where the market has spent time, where trading activity is concentrated and how price behaves around important reference areas.
MARKET PROFILE
Understanding market participation
Market Profile helps organise price activity and provides context around acceptance and rejection.
VOLUME PROFILE
Understanding traded activity
Volume Profile shows how trading activity is distributed across different price areas.
VALUE AREA HIGH
VAH
Upper boundary of the value area.
POINT OF CONTROL
POC
A central profile reference representing concentrated activity.
VALUE AREA LOW
VAL
Lower boundary of the value area.
Section 04
Initial Balance
Initial Balance represents the opening range established during FALCON's defined Initial Balance period.
IB HIGH
Upper IB reference
IB LOW
Lower IB reference
IB RANGE
Width of the opening range
IB STATUS — BUILDING
IB references may continue changing while the Initial Balance period is still in progress.
IB STATUS — COMPLETE
Completed IB references can be used to observe subsequent price behaviour above, below or inside the opening range.
Section 05
Confirmed Trades
A Confirmed Trade represents a trade idea that has satisfied the applicable confirmation conditions within the FALCON workflow.
Confirmed is a workflow state. It should not be interpreted as an instruction to enter a trade or as a guarantee of a profitable outcome.
SYMBOL / INSTRUMENT
Identifies the instrument associated with the trade plan.
DIRECTION
Shows the directional scenario associated with the trade structure.
ENTRY REFERENCE
Shows the entry reference or area associated with the trade plan.
TARGET INFORMATION
Shows the target references associated with the trade structure.
HEDGE INFORMATION
Where applicable, review the qualifying hedge and defined-risk information.
STATUS
Shows the current stage of the trade within the FALCON workflow.
Section 06
Triggered Trades
A Triggered Trade indicates that a previously identified trade plan has reached its defined trigger condition within the FALCON workflow.
A triggered condition records an event within the FALCON workflow. It is not an automatic instruction to enter a trade.
How to Read a Triggered Trade
Review Confirmation→
Check Trigger Condition→
Check Current Market→
Review Hedge / Risk→
Continue with Trade Management
Section 07
Trade Management
Trade management begins after the planning and trigger stages. FALCON helps organise subsequent trade developments so the user can follow the trade in a structured manner.
Trade Management Workflow
Review Triggered Trade→
Monitor Development→
Review Target Changes→
Review Partial Booking Updates→
Review Hedge / Remaining Risk→
Review Final Outcome
Trade-management information describes developments within the FALCON workflow. Users remain responsible for their own position, capital exposure and trading decisions.
Section 08
Telegram-Integrated News
FALCON can bring selected market news from its integrated Telegram news flow into the broader market-analysis workflow.
Recommended News Workflow
News Item→
Check Time→
Check Source→
Assess Relevance→
Compare with Market→
Compare with Trade→
User Decision
News provides context. It does not replace Market Profile, structure, momentum, hedge analysis or the user's independent trading decision.
Section 09
FALCON Hedging
FALCON uses a high-intrinsic-value protective option methodology to create a more responsive hedge around a directional futures position while keeping the hedge structure measurable and systematic.
FALCON High-Intrinsic-Value Hedge
Why 70%–75% intrinsic value?
FALCON's hedge methodology targets protective options where approximately 70%–75% of the option premium consists of intrinsic value.
This means only approximately 25%–30% of the premium represents time value, creating a hedge designed to behave more like the underlying instrument than a low-intrinsic-value option.
70%–75% Intrinsic Value→
~25%–30% Time Value→
Lower Theta Exposure→
High Directional Response→
Structured Futures Protection
Strategic Advantages
Why FALCON prefers high intrinsic value hedges
MINIMAL TIME DECAY
Reduced Theta Exposure
Because approximately 70%–75% of the premium is intrinsic value, only about 25%–30% represents time value.
The hedge is therefore intended to experience less wealth degradation from time decay than a hedge built primarily from ATM or OTM option time value.
HIGH DIRECTIONAL CORRELATION
Responsive Protection
A deep-intrinsic-value protective option generally exhibits stronger directional responsiveness to changes in the underlying instrument.
The intended hedge characteristic is a high Delta, commonly around the 0.80 region or higher, allowing the hedge to begin responding without requiring an extreme market move first.
DEFINED HEDGE-LEG RISK
Premium-Paid Risk
When FALCON's protective hedge is a purchased option, the maximum loss on that option leg itself is limited to the premium paid for that option.
This hedge-leg risk must not be confused with the risk of the complete futures-plus-hedge structure.
HEDGE-LEG RISK
Protective option premium
For a purchased protective option, the premium paid represents the maximum loss that can occur on the option leg itself.
COMBINED POSITION RISK
Futures + protective hedge
The risk of the complete position must be calculated from the futures leg together with the selected hedge contract and its premium.
It should not be assumed that the combined position's maximum loss is simply equal to the hedge premium.
Frozen Qualification Rule
Strict 70%–75% intrinsic-value qualification
A candidate protective option qualifies only when its intrinsic value represents between 70% and 75% of its applicable option premium, inclusive.
LOWER BOUND
70%
70.00% qualifies.
QUALIFYING BAND
70%–75%
The qualification band is strict and inclusive.
UPPER BOUND
75%
75.00% qualifies.
Intrinsic Percentage
Intrinsic % = Intrinsic Value ÷ Option Premium × 100
Qualification should use the underlying calculation values rather than rounded display values. Display rounding should not be used to force a contract into or out of the qualifying band.
Required Premium Range
Valid premium window for a given intrinsic value
REQUIRED PREMIUM MIN @ 75%
Intrinsic Value ÷ 0.75
REQUIRED PREMIUM MAX @ 70%
Intrinsic Value ÷ 0.70
The historical option premium at the relevant trigger point must fall inside this required premium range for the candidate hedge to qualify.
Delta & Hedge Responsiveness
High Delta is a characteristic of the intended hedge
The high-intrinsic-value structure is intended to provide strong directional responsiveness, commonly associated with Delta around 0.80 or higher.
Unless FALCON explicitly applies a separate Delta qualification rule, Delta should be treated as an expected characteristic of the selected high-intrinsic-value hedge rather than as a second mandatory qualification gate.
Hedge Validation Information
Information used by the FALCON methodology
OPTION CONTRACT
The protective option contract being evaluated.
HEDGE TYPE
Identifies the hedge structure being assessed.
STRIKE
The strike of the candidate protective option.
OPTION PREMIUM AT TRIGGER
Historical option premium used in the qualification test.
INTRINSIC VALUE
Intrinsic-value amount calculated for the candidate contract.
REQUIRED PREMIUM MIN @75%
Minimum premium compatible with the 75% upper intrinsic-value boundary.
REQUIRED PREMIUM MAX @70%
Maximum premium compatible with the 70% lower intrinsic-value boundary.
INTRINSIC %
Intrinsic value expressed as a percentage of the option premium.
LOT SIZE
Applicable contract lot size used in the position calculations.
MAX LOSS / SHARE
Defined combined-position loss expressed per share or unit.
TOTAL MAX LOSS
Defined maximum loss for the applicable contract quantity.
2R PROFIT TARGET
Profit objective calculated relative to the defined FALCON risk amount.
Hedge Qualification Workflow
Identify Candidate Strike→
Read Premium at Trigger→
Calculate Intrinsic Value→
Calculate Intrinsic %→
Apply 70%–75% Gate→
Validate Hedge Structure→
Calculate Combined Risk→
Calculate 2R Target
ONE QUALIFYING CONTRACT
Unambiguous qualification
When exactly one candidate satisfies the frozen 70%–75% qualification rule, the qualifying hedge result is unambiguous.
MULTIPLE QUALIFYING CONTRACTS
Preserve all qualifying candidates
If multiple contracts satisfy the frozen methodology, FALCON should preserve the qualifying candidates rather than inventing an undocumented tie-break rule.
QUALIFYING CONTRACT ORDER
Where multiple qualifying contracts are displayed for methodology review, they are ordered by intrinsic percentage ascending and then by strike ascending.
Intrinsic % ↑→Strike ↑
Data Validation Status
DATA_INCOMPLETE
Required historical option-premium information is missing or insufficient to determine whether all relevant candidate strikes satisfy the frozen methodology.
Missing data must not be interpreted as proof that no valid 70%–75% hedge existed.
NO_QUALIFYING_STRIKE_IN_AVAILABLE_DATA
The required candidate information is available, but none of the evaluated contracts satisfy the strict 70%–75% qualification rule.
This outcome is different from incomplete data and must be reported separately.
Defined Combined Risk
Measuring the complete futures + hedge structure
Once the protective option has been validated, FALCON evaluates the futures leg and hedge together to express the risk of the combined structure.
MAX LOSS / SHARE
Maximum defined loss of the combined hedged structure expressed at the per-share or per-unit level.
TOTAL MAX LOSS
Maximum defined loss calculated for the applicable FALCON contract quantity or lot size.
2R PROFIT TARGET
Reward measured against the defined combined risk
After the maximum-loss amount of the validated structure is established, FALCON treats that risk amount as R and calculates the corresponding 2R profit objective.
2R Target = 2 × Defined Combined Risk
Important FALCON Hedging Principle
The 70%–75% intrinsic-value rule is a frozen FALCON methodology rule. It should not be widened, narrowed or replaced merely because another option contract appears more convenient after the trade has been identified.
Where required historical option-premium data is unavailable, the correct result is DATA_INCOMPLETE rather than an assumed hedge qualification.
Section 10
Risk & Responsible Use
FALCON organises market information and trading context into a structured workflow. It does not remove market risk, guarantee outcomes or replace the user's independent judgement.
Responsible Decision Workflow
Market Context→
Trade Information→
Hedge Validation→
Defined Risk→
Position Size→
Event Risk→
Independent Decision→
Review
NO GUARANTEED OUTCOME
No market structure, confirmation, trigger or hedge guarantees that a trade will produce a profit.
PERSONAL CAPITAL
Users should evaluate whether the monetary risk is appropriate for their own available capital.
POSITION SIZE
Defined maximum loss should be considered before deciding an appropriate position size.
EXISTING EXPOSURE
Consider other open trades and total portfolio exposure before adding another position.
CURRENT MARKET
Check whether current conditions still resemble the environment in which the original trade was identified.
EVENT RISK
News and unexpected events can cause rapid changes in volatility, liquidity and execution conditions.
WHAT FALCON IS
- • A structured trading workflow system.
- • A market-context and trade-review framework.
- • A defined high-intrinsic-value hedging methodology.
- • A tool to support disciplined analysis and review.
WHAT FALCON IS NOT
- • A guarantee of profitable trades.
- • A substitute for independent judgement.
- • Personalised investment advice.
- • An automatic instruction to buy or sell.
Final Responsible Use Principle
FALCON should be used as part of a disciplined trading process, not as a replacement for independent analysis, personal capital limits or responsible decision-making.
Confirmed, Triggered and hedge-qualified states describe the FALCON workflow. They do not guarantee a trading outcome and do not require the user to take a position.
Important Information
FALCON is intended for educational and informational purposes only. Information displayed by FALCON should not be treated as a confirmed buy or sell signal, investment advice or a personalised recommendation. Trading and investing involve financial risk. Users should conduct their own analysis and apply appropriate risk management before making trading or investment decisions.
FALCON is not represented as a SEBI-registered Investment Adviser or Research Analyst.