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Frequently Asked Questions

Below you’ll find answers to the most common questions you may have on NQ Hero.  If you still can’t find the answer you’re looking for, just Contact us!

Stock Index Futures are a type of derivative, because its value is derived from some other underlying asset, ie. the Stock Index. These assets are traded via contracts, in which traders speculate on future price by either taking long or short positions (buying or selling) which are then offset later by the opposite position completing the transaction.

Futures Contracts are traded on margin so the minimum requirement varies depending on the asset, volatility, price and leverage. Currently for Stock Index Futures such as the Nasdaq, the initial margin required is $15,000.00 USD. However, Futures Brokers offer leverage so that amount can be adjusted. That said, traders need to provide themselves ‘cushion’ for drawdowns and volatility. 

The most important piece of hardware is strong computer with sufficient memory due to the demands of the software. You will also need trading software with live data feeds, I use eSignal and highly recommend it but other types of trading platforms will suffice. An account with a Futures Broker will also be needed. 

Profit and Loss is calculated by taking the Ticks (Index Points), dividing them by the minimum Tick Size (.25 Index Points), then multiplying by the minimum Tick Value ($5.00 – NQ), multiplied by Contract Size (Volume). For example, if we captured 100 Index Points today, the equation would be as follows: (100/.25*$5.00) * (#ofContracts) = P/L. 

Honest and Transparent

Frequently Asked Questions

Here you’ll find answers to the most common questions you may have on NQHero.  If you still can’t find the answer you’re looking for, just Contact us!

Algorithmic Trading is a trading process in which a computer follows specific rules and calculations based on programming language which is then translated into tradeable signals that are executed in the market automatically. At NQHero, our algorithms are driven entirely by technical analysis and price action, allowing for fast, consistent, and emotion-free execution directly in the market.

Futures are financial derivatives contracts based on an underlying asset that allow traders to speculate on the direction of future prices. At NQHero, we use them specifically for price speculation. Because futures are traded on margin, they offer powerful leverage—amplifying both profits and losses with just a small capital outlay.

However, leverage cuts both ways. That’s why we follow a disciplined multi-level portfolio scaling approach, helping manage exposure and maintain control across varying market conditions.

Maximum Drawdown measures the largest peak-to-trough decline in equity over a given period—essentially, the worst string of losses the strategy has experienced. It’s a key metric for determining the capital needed to weather tough periods, which is why we recommend funding at 10x the historical max drawdown for safe and consistent portfolio execution.

No. You’ll have access to a secure investor portal where you can view and download all trading statements, monitor real-time trading activity, and stay fully informed. Direct communication with both the Fund Manager and Fund Administrator is always available, ensuring full transparency and support whenever you need i

When you trade a diversified portfolio, you’re not just spreading risk—you’re stacking the odds in your favor. At NQHero, diversification is core to achieving more consistent outcomes. By running multiple uncorrelated strategies across a range of assets and market behaviors, we create multiple independent revenue streams.

This layered approach doesn’t just reduce drawdowns—it smooths the equity curve and builds greater reliability over time. Simply put, the more robust and varied your sources of edge, the more resilient your system becomes.

Trading costs in futures generally amount to $5.20 per round turn (buying and selling a contract), but can vary depending on the asset being traded.

This includes:

  1. Commissions – Broker fees per trade.

  2. Exchange Fees – Fees charged by the exchange.

  3. Clearing Fees – Fees for settling trades.

To determine monthly costs, it will depend on the number of trades and contracts traded during that month. The more trades executed, the higher the total trading costs will be.

Investors go through a subscription process facilitated by the fund administrator:

  • Subscription Agreement – Investors fill out legal documents outlining the amount they’re investing, their identity, and their acknowledgment of fund terms.

  • AML/KYC Checks – The admin performs Anti-Money Laundering and Know Your Customer verifications to ensure regulatory compliance.

  • Capital Commitment – Investors wire funds to a designated bank account controlled or overseen by the administrator, not the fund manager directly.

At NQHero, we operate on a performance-based model—meaning we only succeed when you do. Instead of charging traditional management fees, we use a profit sharing structure with preferential shares that aligns our incentives with yours.

All calculations are handled by a third-party fund administrator for full accuracy and transparency. You’ll have access to a secure investor portal where you can view performance, statements, and fee breakdowns at any time.

Preferred rates on shares are designed to give investors added benefits by offering preferential treatment on distributions. Each share class comes with its own rate, with larger investments enjoying even greater advantages. When profits are made, investors receive their preferred rate first, ensuring they benefit before profit sharing begins. After all investors have received their preferential treatment, profit sharing with NQHero kicks in, maximizing the potential for long-term growth and success.

NQHero operates from a bare metal server located in the trading hub of New York City, offering 100% uptime for uninterrupted trading. This setup ensures that our automated strategies run smoothly without downtime, providing the reliability and consistency needed for high-frequency, algorithmic trading. The proximity to major exchanges also minimizes latency, enabling fast execution and reducing the risk of slippage—critical factors for the precision and performance of our automated systems.

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