Can accuracy be increased in algo trading from 40%?

Schatz

Well-Known Member
#12
From what I understood, higher the HIT ratio the RR would be less. Currently per my system I am letting the trades run till I get exit signal.

So, in my case to increase HIT I have to reduce to mostly 1.5R or 1.25R. Do let me know your thoughts.
It's difficult to answer just based on those points. But yes if your tgt is less you r more likely to hit them. But then these have to be seen in conjunction with other factors. Ofcourse there does not exist any strategy which has 70% hit rate and 1:3 RR. Then u would crorepati in no time. Market does nt have that much edge.
 

mohan.sic

Well-Known Member
#14
It's difficult to answer just based on those points. But yes if your tgt is less you r more likely to hit them. But then these have to be seen in conjunction with other factors. Ofcourse there does not exist any strategy which has 70% hit rate and 1:3 RR. Then u would crorepati in no time. Market does nt have that much edge.
why do you think it does not exist.
 
#15
Hello All,

I recently started algo trading using python with Zerodha. I tested multiple strategies and whenever I backtest any of these strategies I noticed that in a month the accuracy never goes above 42% to 44%. Are you able to achieve a better accuracy rate?

My algo setup is simple:

Go long when 10 EMA crossed above 20EMA and recent close should be greater that PSAR.
Exit condition is if 10EMA cross below 20EMA or PSAR is above the last close.

The same is reversed for short. Do you have any suggestions on how the accuracy can be improved?

Thanks in advance.

An algorithm is a set of instructions which a computer is programmed to follow in order to carry out a particular task. In the case of trading, these defined instructions pertain to placing trades with a speed and precision which a human trader would not be able to achieve. The instructions set the timing, quantity, price limits or any other relevant criteria that would ensure the most profitable trade.


It is important to keep in mind that algotrading is a market strategy and not meant for long-term investors.
 
#19
I wonder if there any successful algo traders in this forum who has got a decent accuracy.

I missed mentioning that I use 5 mins in algo and hence the accuracy of 42% but same system executed on 15 mins gives around approx 54% accuracy.
I use automated algotrading system with my broker provided API.Yes I have a system that has a statiscal edge on bank Nifty intraday option writing.It is based on theta decay.It seems to be consistent so fast so good.
 

mohan.sic

Well-Known Member
#20
I use automated algotrading system with my broker provided API.Yes I have a system that has a statiscal edge on bank Nifty intraday option writing.It is based on theta decay.It seems to be consistent so fast so good.

intraday theta decay..thats intresting to see edge on bn options. does your automation keep changing the positions dynamically adjusting deltas and if so on what deviation between deltas does it trigger ?

thanks
 

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