Asking some newbie questions about algo trading!

As you(t7support) said in that thread!

Let’s create a new thread!

Sorry @VijayNair if that messages under that tooic annoys you :sweat_smile: :raised_hands:t2:

So someone might get some info, If they see this in future!

Just copy pasting the same

Thanks for sharing this valuable info🙂!

By the way 47-60% is good enough?
I thought 80% would make a good algo!

What percentage would you consider bad?

Can you share how much capital you put for this?
And how much capital it takes for a single trade?

Perhaps, if capital is sensitive, share in accordance with percentage!

And General slippage percentage, according to your capital (say it for thousands or lakhs in capital[approx also good])!

Maximum loss & max profit & average capital, you incurred in percentage regarding the whole capital?

Sorry, If this too much😅

Do you think newbie like me,can profit of doing this! (Note : I am new to sharemarket)?

And, will your algo, be in work, all working days & working time of exchanges?

You can share , If you are ok with it :slightly_smiling_face: :raised_hands:t2:

Thanks in advance!

Like I said accuracy shouldn’t be seen standalone. It has to be coupled with risk reward. Trend following systems have lower accuracy because globally market trends only 30-35% of the time. But risk reward is high so when we win we win big and when we lose we lose less. So 47-60% for a trend following strategy is great.

On the other side one can option sell far otms with high accuracy 80-90%, but risk reward is low. So when one loses one loses big and when one wins, one wins small.

As you see the net profit is a function of both accuracy and risk reward per trade.

Capital per lot Rs.2 Lakh. Per trade capital 2-5% depending on days to expiry when the option is bought.

Not more than 20 ticks per trade which means the contract is fairly liquid. This translates to negligible slippage relative to trade capital in % terms.

Now I run a lot of strategies. For each pasting these would make it very long. So lets go with the the basic rules. Drawdown % less than 30% of the capital deployed. Max trade profit theoretically infinite. Worst case lose limited to premium paid for the option.

If I can u can. But be prepared to go through the grind. There are no overnight success stories. Each success story has a story covering a good amount of time in the past before the success.

Yes always in the market with my positional trend following strategy. Intraday strategies from 9:30 AM to 3:15 PM.

1 Like

Thanks for answering the questions :slightly_smiling_face: :+1:t2: