i backtested some very good strategies in zerodha streak and was seeing a good amount of green results but as soon as I turned on the brokerage, all of a sudden the profit and loss chart not only went down a but it went in deep negative. Why is this so, as a matter of fact the strategy is mostly cnc based, so technically my profits should not even get affected by the brokerage. And it is in the equity segment and not in the f&o segment.
When streak says brokerage, they mean all costs - STT, Brokerage, Stamp duty, GST, Exchange and SEBI charges. See the list of all charges here https://zerodha.com/charges.
Even though brokerage is 0 with us, the rest of the charges still apply.
But I get your point, I think it shouldn’t be called brokerage - it should maybe be called Costs. @Harsha_Streak
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@Harsha_Streak @nithin ya i get it but it still doesn’t explain why the difference was so much. I think i was seeing a profit of some 7.3% and after applying brokerage(costs), it came down to -2.5%. Any reason why this might have happened. I checked the chargesheet and saw that the total cost will not be more than .12%per trade. This doesn’t make any sense to me. Has anyone also noticed or has experienced this sort of thing?
Hi Aditya_Bhat,
During CNC the brokerage charge is zero but other costs such as STT/CTT is higher because you are taking delivery. MIS trades carry lesser STT/CTT.
So the more number of transactions you do by taking delivery, higher your cost compared to intraday.
Why don’t you try running the same strategy on CNC and MIS and see the difference.
Also kindly note how many trades are happening in backtest, it will be surely more than 100.
Do write to [email protected] along with the strategy and we will help you out.
Thanks