Advanced track quiz

1. What is a futures contract?

1. An agreement to buy or sell later at a price agreed today
2. A share of a company
3. A savings account
4. A type of candle

2. How often are futures gains and losses settled?

1. Once a year
2. Only at expiry
3. Every day
4. Never

3. What is initial margin?

1. The profit you will make
2. A good-faith deposit to open the position
3. A fee to the exchange
4. The contract's full value

4. Can you lose more than your margin deposit?

1. No, never
2. Only on Fridays
3. Only in crypto
4. Yes, losses can be bigger than it

5. You are long 1 gold future (100 ounces) at 2,000, and it settles at 1,990. What is the day's result?

1. -100 dollars
2. -1,000 dollars
3. -10 dollars
4. +1,000 dollars

6. The account falls to 8,500, maintenance is 9,000 and initial margin is 10,000. How much is the margin call?

1. 1,500
2. 500
3. 8,500
4. 10,000

7. Gold moves in steps of 0.10 dollar on 100 ounces. What is one step worth?

1. 1 dollar
2. 100 dollars
3. 0.10 dollar
4. 10 dollars

8. One E-mini S&P 500 future is worth 50 dollars per index point. What does a 20-point move against one contract cost?

1. 20 dollars
2. 70 dollars
3. 1,000 dollars
4. 2,500 dollars

9. Why can a physically delivered contract near expiry be risky for a trader?

1. It cannot move
2. Prices are frozen near expiry
3. Cash settlement pays extra
4. Holders may have to deliver or take delivery, and prices can swing wildly near the end

10. Who marks futures positions to market each day?

1. The trader
2. The exchange's clearing house
3. A news agency
4. An AI assistant

11. What is the spot price?

1. Today's cash price for the asset
2. A futures price for next year
3. A trading fee
4. A stop-loss level

12. What happens to the basis as expiry approaches?

1. It grows forever
2. It doubles
3. It shrinks toward zero
4. It stays fixed

13. Later contracts cost more than nearer ones. What is that called?

1. Backwardation
2. Contango
3. Liquidation
4. Settlement

14. What does rolling a futures position mean?

1. Closing it forever
2. Adding leverage
3. Changing the stop
4. Closing the expiring contract and opening a later one

15. Spot is 70 and next month's future is 71.50. What is the basis, written as spot minus futures?

1. +1.50
2. 141.50
3. -1.50
4. 0

16. Later months priced below nearer months often signal what?

1. Scarcity right now
2. Too much supply
3. No trading
4. A holiday

17. A crude oil contract is 1,000 barrels. A roll cost of 1.50 dollars a barrel is how much per contract?

1. 1.50 dollars
2. 1,500 dollars
3. 150 dollars
4. 15,000 dollars

18. Why can a rolled long position fall behind a flat spot price in contango?

1. Each new contract is bought above spot and drifts down to it by expiry
2. Spot prices always fall
3. Exchanges charge a roll tax
4. Futures never move

19. Why does a continuous futures chart sometimes jump on a quiet day?

1. A big news event always happened
2. The exchange made a mistake
3. Candles were deleted
4. It switched from one contract to the next, and their prices differ

20. In April 2020, what did the expiring US crude oil contract settle at?

1. Zero
2. 70 dollars
3. Minus 37.63 dollars a barrel
4. 100 dollars

21. What does a call option give its buyer?

1. The duty to buy
2. The right to buy at the strike price
3. The right to sell
4. A share of the company's profits

22. What is the premium?

1. The price paid for the option
2. The strike price
3. The expiry date
4. The company's profit

23. A put option gives the right to do what?

1. Buy
2. Borrow
3. Vote
4. Sell

24. The stock is at 100 and a call's strike is 90. Is the call in, at or out of the money?

1. Out of the money
2. At the money
3. In the money
4. None of these

25. The premium is 2.00 per share and a contract covers 100 shares. What does one contract cost?

1. 2 dollars
2. 20 dollars
3. 200 dollars
4. 2,000 dollars

26. The stock is at 100 and a put's strike is 95. Is the put in the money?

1. No, it is out of the money
2. Yes
3. It is at the money
4. Puts are never in the money

27. Call strike 105, the stock at 110 at expiry, and a premium of 2.00. What is the profit per share?

1. 5.00
2. 10.00
3. 2.00
4. 3.00

28. What is the most an option buyer can lose?

1. An unlimited amount
2. The premium paid
3. Twice the premium
4. The strike price

29. When can a European-style option be exercised?

1. Any day before expiry
2. Only at expiry
3. Never
4. Only on Mondays

30. Who takes on the obligation in an option trade?

1. The seller, also called the writer
2. The buyer
3. The exchange
4. Nobody

31. What does a payoff diagram show?

1. Profit or loss at expiry for each final price
2. Tomorrow's price
3. The company's earnings
4. Trading volume

32. What is the most a call buyer can lose?

1. An unlimited amount
2. The strike price
3. The premium paid
4. Nothing

33. Call strike 100 and premium 4. What is the breakeven at expiry?

1. 96
2. 104
3. 100
4. 4

34. Put strike 100 and premium 3. What is the breakeven at expiry?

1. 103
2. 100
3. 3
4. 97

35. Call strike 100, premium 4, and the stock ends at 112. What is the buyer's profit per share?

1. 12
2. 4
3. 8
4. 16

36. Put strike 100, premium 3, and the stock ends at 90. What is the buyer's profit per share?

1. 7
2. 10
3. 3
4. 13

37. Who faces losses that are unlimited in theory?

1. A call buyer
2. A put buyer
3. A shareholder
4. A call seller

38. Put strike 100 and premium 3. What is the put seller's maximum loss per share?

1. 3
2. 97
3. 100
4. Unlimited

39. Why can 'selling options for steady income' be dangerous?

1. Premiums are illegal
2. Sellers can never profit
3. Small steady gains can be wiped out by one big move against the seller
4. It needs no margin

40. A long call compared with owning the shares: what is the key difference on the downside?

1. The call's loss is capped at the premium, while the shares can keep falling
2. The call loses more
3. There is no difference
4. Shares cannot fall

41. What does position sizing decide?

1. Which market to trade
2. How many units to trade so a stop-out loses only your planned amount
3. When to exit
4. The chart timeframe

42. For one share, what is the value per point?

1. 1
2. 10
3. 50
4. 100

43. You risk 200 dollars with a 4-dollar stop on a stock. How many shares?

1. 25
2. 80
3. 800
4. 50

44. What should you do if one contract risks more than your limit?

1. Round up anyway
2. Skip the trade or use a smaller contract
3. Remove the stop
4. Double the stop distance

45. Risk 200 dollars, a 25-pip stop and 10 dollars per pip per standard lot. What size?

1. 0.8 lots
2. 8 lots
3. 2 lots
4. 0.08 lots

46. Risk 200 dollars, a 20-point stop and 5 dollars per point on the Micro E-mini. How many contracts?

1. 1
2. 4
3. 2
4. 10

47. Your size works out to 2.7 contracts. What do you trade?

1. 3
2. 2
3. 2.7
4. 0

48. The same trade on the E-mini at 50 dollars per point: a 20-point stop and 200 dollars of risk. What is the result?

1. 2 contracts
2. 1 contract
3. 20 contracts
4. 0.2 contracts, so the trade is skipped

49. A Nikkei 225 mini future is worth 100 yen per point. With a 150-point stop and 30,000 yen of risk, how many contracts?

1. 2
2. 1
3. 3
4. 20

50. Why allow for slippage when you size a trade?

1. It lowers costs
2. Exchanges require it
3. Fills can be worse than the stop price, so the real loss can be larger
4. It makes the size bigger

51. What does expectancy tell you?

1. Your average result per trade over many trades
2. Tomorrow's price
3. Your win rate only
4. The size of your account

52. Which formula is expectancy?

1. Win rate + loss rate
2. Average win / average loss
3. Win rate x average win - loss rate x average loss
4. Number of trades x 2

53. 40% wins at 2R and 60% losses at 1R. What is the expectancy?

1. +0.8R
2. +0.2R
3. -0.2R
4. +1.4R

54. Why is win rate alone misleading?

1. It is always 50%
2. It includes costs
3. It shows the average win
4. It ignores how big the wins and losses are

55. 70% wins at 0.3R and 30% losses at 1R. What is the expectancy?

1. +0.21R
2. -0.09R
3. +0.09R
4. -0.3R

56. Expectancy is +0.2R and costs are 0.1R per trade. What is left?

1. +0.1R
2. +0.3R
3. -0.1R
4. +0.2R

57. What is the break-even win rate for a 3R reward and a 1R risk?

1. 33%
2. 50%
3. 75%
4. 25%

58. Net +0.1R per trade over 100 trades. What is the expected total?

1. +1R
2. +100R
3. +10R
4. +0.1R

59. You measured +0.5R per trade over 8 trades. What is the right view?

1. It is a proven edge
2. Too few trades, so the true figure could be far from +0.5R
3. Double your size
4. Stop tracking

60. 50% wins at 1R, 50% losses at 1R, and costs of 0.05R per trade. What is the net expectancy?

1. 0R
2. +0.05R
3. -0.05R
4. +0.5R

61. What is a manual backtest?

1. Trading live with real money
2. Testing a rule on old charts by hand
3. Reading the news
4. Asking a friend

62. In replay mode, what can you see?

1. All the future candles
2. Tomorrow's news
3. Only candles up to the current one
4. Other traders' orders

63. Which signals should you log?

1. Every trigger that fits the rules
2. Only winners
3. Only the ones you like
4. Only the last one

64. Why test across trending, ranging and crash periods?

1. To make the test longer
2. Exchanges require it
3. Crashes always pay
4. A rule tested in one kind of market can look better than it is

65. 16 wins at +1.8R and 24 losses at -1R. What is the total?

1. +28.8R
2. +4.8R
3. -4.8R
4. +8R

66. +4.8R over 40 trades. What is the expectancy per trade?

1. +0.12R
2. +0.48R
3. +1.2R
4. +4.8R

67. 16 wins out of 40 trades. What is the win rate?

1. 16%
2. 60%
3. 24%
4. 40%

68. What does skipping 'ugly' signals do to the results?

1. Makes them more accurate
2. Lowers costs
3. Makes them look better than reality
4. Nothing

69. How should you treat 40 backtested trades?

1. As proof for life
2. As a rough first picture to confirm on fresh data
3. As meaningless
4. As a reason to go all in

70. Why hide future candles during a manual backtest?

1. So hindsight can't influence which signals you take
2. To save battery
3. Because charts are too long
4. To make the rule harder

71. Which timeframe do you check first?

1. The higher one, for direction and key levels
2. The lowest one
3. Whichever is green
4. None

72. What is the lower timeframe used for?

1. Finding the long-term trend
2. Choosing the market
3. Timing the entry and placing the stop
4. Reading the news

73. Which pair fits the four-to-six rule of thumb?

1. Weekly and 5-minute
2. Weekly and daily
3. Monthly and 1-minute
4. Daily and 1-minute

74. Daily uptrend, and an hourly bullish trigger at daily support. Do they agree?

1. No
2. Only on Fridays
3. Can't tell
4. Yes

75. Risk 400 dollars with a stop distance of 8. How many shares?

1. 10
2. 50
3. 8
4. 400

76. Risk 400 dollars with a stop distance of 40. How many shares?

1. 10
2. 50
3. 4
4. 40

77. Why does a tighter lower-timeframe stop need a new size calculation?

1. It doesn't
2. Tighter stops cost more fees
3. The exchange asks for it
4. The same risk with a smaller stop distance allows a bigger size

78. Why is a daily and 4-hour pair awkward for many stocks?

1. Stocks have no 4-hour charts
2. A stock's trading day holds only about two 4-hour candles
3. 4-hour charts are banned
4. Daily charts don't exist for stocks

79. Hourly setups look great, but the daily trend is down. What does this lesson's rule say?

1. Trade the hourly setup long anyway
2. Double the size
3. Take only trades in the daily trend's direction, or wait
4. Switch to the 1-minute chart

80. Why stop adding timeframes once two agree?

1. More charts mostly add conflict and delay
2. More timeframes are banned
3. Two is always enough to be right
4. It lowers costs

81. What is an option's premium made of?

1. Only intrinsic value
2. Intrinsic value plus time value
3. Only fees
4. The strike plus the stock price

82. What happens to time value as expiry approaches?

1. It grows
2. It stays the same
3. It shrinks, fastest near the end
4. It doubles

83. At expiry, what is an option worth?

1. Only its intrinsic value
2. Its time value
3. Double its premium
4. Always nothing

84. What is IV crush?

1. A rise in the stock price
2. A trading fee
3. A type of stop
4. A sharp drop in implied volatility, often right after an event

85. The stock is at 104, the call strike is 100 and the call costs 5.00. What is its time value?

1. 4.00
2. 5.00
3. 1.00
4. 9.00

86. Delta is 0.5 and the stock rises 4. Roughly how much does the option change, other things equal?

1. +2.00
2. +4.00
3. +0.50
4. +8.00

87. Roughly what is an at-the-money call's delta?

1. 0
2. 1
3. -1
4. 0.5

88. The stock rose 4 after results, yet the call fell from 6.00 to 5.00. What is the main reason?

1. The stock went down
2. Implied volatility fell and time passed, outweighing the move
3. The strike changed
4. Delta was zero

89. In SEBI's FY26 study, what share of individual options traders in India lost money?

1. 12.3%
2. 50%
3. 87.7%
4. 66.0%

90. Why is holding out-of-the-money options into the final days risky?

1. They gain value automatically
2. Delta rises to 1 for every option
3. Exchanges cancel them
4. Time value decays fastest near expiry, and they may expire worthless

91. What does the optimal-growth formula estimate?

1. The fraction of capital to risk for the fastest long-run growth
2. Tomorrow's price
3. Your win rate
4. The best market

92. With p = 0.5 and b = 2, what is f?

1. 0.5
2. 2
3. 0.25
4. 0.1

93. What is half of a 25% optimal fraction?

1. 50%
2. 12.5%
3. 25%
4. 5%

94. Why do traders bet less than the formula says?

1. It is more fun
2. The formula is banned
3. Smaller bets always win
4. Their edge estimate might be wrong, and full size brings huge swings

95. If the true p is 0.4 and b is 2, what is f?

1. 0.25
2. 0.1
3. 0.4
4. 0.2

96. You think p is 0.5, but it is really 0.4. Betting 25% is how many times the true optimum?

1. 2.5
2. 1
3. 4
4. 10

97. Which fixed risk per trade is common in practice?

1. 25% to 50%
2. 10% to 20%
3. 100%
4. 0.5% to 2%

98. With p = 0.5 and b = 2, what long-run growth does betting 50%, twice the optimum, give?

1. The fastest growth
2. About zero
3. Double the growth
4. Growth with no losing trades

99. Why is a win rate from 20 trades a poor input for full-size optimal betting?

1. 20 is an unlucky number
2. The formula needs exactly 100 trades
3. Win rates never change
4. Small samples can overstate your edge a lot

100. What do you gain by betting a quarter of the optimal fraction?

1. More growth than full size
2. A higher win rate
3. Much smaller drawdowns, at the cost of some growth
4. No losing trades

101. What is survivorship bias?

1. Testing only on assets that still exist today
2. Using stops
3. Trading only after crashes
4. A trading fee

102. What is look-ahead bias?

1. Testing too few trades
2. Using information that was not available at the time
3. Ignoring costs
4. Using a weekly chart

103. What is overfitting?

1. Using too few rules
2. Adding costs
3. Tuning rules so tightly that they fit past noise
4. Testing on new data

104. Which trap hurts frequent trading the most?

1. Survivorship bias
2. Anchoring
3. Weekly charts
4. Ignoring costs and slippage

105. +0.15R per trade before costs and 0.12R of costs. What is the edge after costs?

1. +0.27R
2. +0.03R
3. -0.03R
4. +0.12R

106. 500 trades at +0.03R each. What is the total?

1. +1.5R
2. +150R
3. +15R
4. +0.03R

107. A report tunes 12 settings on one year of data. What is the main trap?

1. Overfitting
2. Survivorship
3. Look-ahead
4. Costs

108. Why does testing only today's index members flatter results?

1. Today's members are cheaper
2. Old data has no costs
3. Index members never fall
4. Companies that failed or were removed, often big losers, are left out

109. Your backtest keeps disappointing and you keep adding rules. What is happening?

1. You are finding the true edge
2. You are fitting noise, which will likely fail on new data
3. Costs are falling
4. This is good practice

110. Which result deserves the most trust?

1. Before costs, on the data used for tuning
2. The best of 100 variants
3. After costs, on data never used for tuning
4. The smoothest curve

111. What is out-of-sample data?

1. Data used to tune the rules
2. Data kept hidden while building, for a final test
3. Tomorrow's prices
4. News data

112. What does walk-forward testing do?

1. Tunes on one window, tests on the next, then rolls forward
2. Tests once on all the data
3. Walks through the news
4. Removes costs

113. What does a Monte Carlo reshuffle show?

1. The exact future
2. Only the best path
3. The win rate only
4. The range of drawdowns and streaks the same trades could produce

114. With a 70/30 split of 10 years, how many years are out-of-sample?

1. 7
2. 10
3. 3
4. 1

115. In-sample +0.30R and out-of-sample +0.12R per trade. How much of the edge survived?

1. 60%
2. 40%
3. 18%
4. 12%

116. What does a large drop from in-sample to out-of-sample suggest?

1. A better strategy
2. Lower costs
3. An error in the hidden data
4. The rules were fitted to noise

117. Why size for the worst 5% of Monte Carlo drawdowns?

1. The future won't repeat the past's exact order, and bad runs can be deeper than the one you saw
2. It is required by law
3. The worst case always happens
4. It makes trades bigger

118. You peeked at the out-of-sample results and then tweaked the rules. What happened?

1. Nothing
2. The out-of-sample data effectively became in-sample data
3. Your edge grew
4. Costs went down

119. Reshuffling the same 60 trades changes which of these?

1. The total R
2. The win rate
3. The drawdowns along the way
4. The average win

120. Why test out-of-sample only once, at the end?

1. Each extra look lets you tune to it, which spoils it as an unseen test
2. Tests are expensive
3. Data expires
4. Walk-forward forbids it

121. Daily uptrend, 1-hour downtrend. What is the hourly move often?

1. A pullback inside the bigger trend
2. Proof the daily trend is over
3. A data error
4. A signal to double your size

122. Which timeframe sets the direction in this lesson's rules?

1. The lowest
2. Whichever is green
3. The higher timeframe
4. The one your friend uses

123. Price sits between two major daily levels and the timeframes disagree. What does the conflict table say?

1. Trade double size
2. Stand aside
3. Trade normal size
4. Enter immediately

124. What decides which timeframe matters most?

1. The colour scheme
2. The news
3. The weather
4. How long you plan to hold the trade

125. Entry 1,236 and stop 1,196. What is the risk?

1. 40 points
2. 28 points
3. 36 points
4. 1,196 points

126. Target 1,316, entry 1,236 and a risk of 40 points. How big is the reward in R?

1. 1.5R
2. 3R
3. 2R
4. 80R

127. What counts as a lower-timeframe 'turn' in this lesson?

1. Any green candle
2. A higher low plus a break of the last swing high
3. A news headline
4. A lower low

128. Why write your conflict rule before looking at the chart?

1. So you don't pick the timeframe that suits the trade you already want
2. Rules must be written in ink
3. Charts change after you look
4. It saves data

129. A trade planned for 2 days is losing and the daily chart has turned down. What fits the rules?

1. Hold for weeks in case the weekly chart rescues it
2. Switch to the monthly chart
3. Add to it
4. Exit as the plan says rather than stretching the holding period

130. Why mark major levels on the higher timeframe beforehand?

1. It looks nicer
2. So 'major level' is defined in advance and the rule can be tested
3. Levels move every minute
4. The exchange requires it

131. What is a strategy in this lesson?

1. A lucky guess
2. A written recipe for your trades
3. A news feed
4. One great trade

132. What is a hypothesis?

1. A simple, testable idea
2. A proven fact
3. A fee
4. A chart pattern

133. Which rule is clear enough to test?

1. Buy when it looks strong
2. Enter when it feels right
3. Exit when nervous
4. Enter at the next open after a close above the prior day's high

134. Why fit the strategy to your schedule?

1. It looks professional
2. Exchanges require it
3. The best strategy is one you can follow consistently
4. Longer charts are always better

135. Entry 205, stop 195 and 300 dollars of risk. How many shares?

1. 20
2. 30
3. 300
4. 15

136. Entry 205 and a risk of 10 per share. Where is a 2R target?

1. 215
2. 210
3. 230
4. 225

137. What comes right after the manual backtest in the pipeline?

1. An out-of-sample check with costs
2. Full-size live trading
3. Adding ten more rules
4. Posting results online

138. Why do fewer rules help?

1. They are easier to test and harder to overfit
2. They always win more
3. Exchanges prefer them
4. They need no stops

139. Your strategy grew out of one amazing past trade. What is the problem?

1. It was too profitable
2. Nothing
3. One trade is not evidence, so the idea needs many tested cases
4. Past trades are secret

140. When should you drop an idea in the pipeline?

1. Never
2. Only after live losses
3. When a friend disagrees
4. At any stage where it fails its test

141. What is a forward test?

1. Re-running the backtest
2. Trading the frozen strategy on new data
3. Reading the news
4. Changing rules every day

142. What is profit factor?

1. Gross profit / gross loss
2. Win rate x 2
3. Average win - average loss
4. The number of trades

143. Gross profit is 18R and gross loss is 12R. What is the profit factor?

1. 0.67
2. 6
3. 30
4. 1.5

144. What is maximum drawdown?

1. The biggest win
2. The number of losses
3. The biggest drop from a peak
4. The average loss

145. 8 wins in 20 trades. What is the win rate?

1. 8%
2. 40%
3. 20%
4. 60%

146. A net +6R over 20 trades. What is the expectancy?

1. +0.3R
2. +6R
3. +3R
4. +0.06R

147. When should you set the continue, adjust or stop thresholds?

1. After seeing the results
2. Never
3. Halfway through
4. Before the test starts

148. Forward expectancy is +0.3R and the backtest showed +0.36R, over just 20 trades. What is the best reading?

1. The strategy is broken
2. Roughly consistent, given the small sample
3. Double the size
4. The backtest was fake

149. Why change at most one rule per review cycle?

1. So you can tell whether that change helped
2. Rules cost money
3. The app allows only one
4. It is faster

150. Why don't simulated results guarantee real ones?

1. Simulations are always wrong
2. Real markets are closed
3. Real trading adds real emotions, fills and costs
4. Simulations use future data