Day Trading Stocks & Futures

checkmate7

Well-Known Member
just a clarification , on days like the few we had recently, due to high volatility where the market is racing up and down multiple times daily wouldnt a remote trading system like this be disastrous ? just asking

i think one of the brokers( zerodha i think) had some interface where writing your own algos was made easy, i tried but realised i was just not cut out for such things. didnt want to do something stupid and regret it later
When you would be testing that time you have to take into account those days too...Testing on 1-2years of data wouldn't take care of all those events so better test on atleast 10years of data which covers all the scenario...Moreover while designing the code you should not think that since system is executing the trade so we can have lots of trade...Its better less trade with good win/loss ratio otherwise you would end up making broker rich with your system :) ....There are other things also in testing which we should look into to make system robust.
 

mohan.sic

Well-Known Member
just a clarification , on days like the few we had recently, due to high volatility where the market is racing up and down multiple times daily wouldnt a remote trading system like this be disastrous ? just asking

i think one of the brokers( zerodha i think) had some interface where writing your own algos was made easy, i tried but realised i was just not cut out for such things. didnt want to do something stupid and regret it later
Yes volatility will create issues. Hence automation alone is not sufficient if we have to stand long time in business.
We need to to use algo's to - slice the orders, bidding orders etc. This will solve the issues to large extent.
 
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sridhga

Well-Known Member
Yes, very true. Most traders have high blood pressure due to sitting in front of the system for long time and monitoring it.. :)

The only way to handle this is to reduce your position size with respect to your capital. In addition to this, have stop-loss in place. While trading options work with spreads because they have built in stop-loss features.
Honestly, I never feel, I would get BP if I sit in front of the terminal. I enjoy the ride. Even if I made a loss, I would not regret if that loss were within my stop loss limits.
 
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