I was going through this post. I did some experiment on the feasibility of executing such trades via Kite API. I collected data for some day (WebSocket streaming). The result seems mixed.
- First I plotted the last traded price of
BHARTI AIRTELfor 21st June whole day for BSE and NSE both.
Now If I go a bit deep, I can roughly assume to make profit in such trade, the following thing should happen,
(BSE bid price - NSE offer price)(when taking the trade) should be greater than
(BSE offer price - NSE bid price)(when covering), or vice versa.
- Now I plot, where
(BSE bid price - NSE offer price) > 0.5and
(BSE offer price - NSE bid price)<0.05(Required to make a reasonable profit) against time. i.e. actual prices to consider for strategy “Sell at BSE at higher price, Buy in NSE at lower price. Cover when the difference is less”.
- The opposite combination i.e.
(NSE bid price - BSE offer price) > 0.5and
(NSE offer price - BSE bid price)<0.05also doesn’t give promising result,
Anyone curious about how I plotted these, look here. All the graphs is here.