What you see above is my P&L report of July’s intraday algo trades. Out of 21 trading days in the month of July, I lost money only three days and all other days I am one profit, which means my strategy has a winning rate of 80%. By looking at this post you might have a lot of questions and I am trying to capture the questions a normal man has and try to answer the same. I will promise only one to you, I will always be transparent, honest and keep my integrity without any compromise.
Who are you ?
We (Yes, there are others also) are a set of people who are passionate about the stock market and try to do different things to earn money.
On what instrument do you trade ?
In the above chart the instrument is Bank Nifty only. But we do trade on Nifty also. We do not do any algo trade on any other instrument as of now.
What is your strategy ?
We do sell options, I can not share more than this, you can contact us and I can explain more.
What is the capital required for this strategy ?
MInimum of 1.8 L required to do. It might go up to 2 L by September by the new SEBI law.
Can I do the same and earn money? Can you help me with that ?
Yes absolutely, that is the reason behind this post.
You mentioned algo trade, what is it ?
As per SEBI definition, if you are automating your trades (buy and sell) using a computer, then it is called algorithmic trading.
What is the benefit of algorithmic trading ?
You can get rid of your psychological issues, it is a machine who is trading and it will not have any psychological issues.
You can trade while you work / do anything else.
We use quantitative analysis to find the best strategy that works for the current market and that will definitely increase your profitability.
Can I always expect profit if I use algorithmic trading ?
No, you should use the right strategy on the right market. Algo trading is not magic.
Do you expect the same profit every month ?
No, I can not expect the same profit every month, When I do back test with some really good strategies, I saw a profit of 150% per year (For last one year back test)
What is the expected profit ?
Back test results say you can easily create strategies that give more than 100% profit in a year. This does not include all charges. But I would say do not expect more than 50-60% profit excluding charges but including slippage.
You say charges, what are the charges ?
Brokerage, STT and other charges combine together broker charge you, Algo trading platform charges (till July it was free and from august onwards they are going to charge). Please note that we do not own the algo platform and hence it is not a payment coming to us.
What is slippage ?
When we do a back test we consider the exact amount, but when we do real trade there will be a small time gap and it will lead to entering with a slightly different price. This is what is called slippage.This is not specific to algorithmic trading, it will happen for manual trade as well.
What are your charges ?
We do not charge anything , it is absolutely free.
Don’t try to fool us, no one will give any service without charging, tell me exactly how you make money and what is your benefit here ?
Yes I agree, there is no free lunch. But we don’t charge anything to you. The only condition we say to you is to create a new Angel account under us. Anyway you have to pay the brokerage to the broker whether you take account through us or not. If you take an angle account through us, we get the brokerage commission and it is our income. Hope this is clear.
Now all clear, How can I be part of you and start doing this ?
Contact us on mobile <+91 92072 88854> to clarify your queries and we will help you to get an angel broking account. You cans join our Whatsapp Group also to see how things are working 🙂