Slippage impact trading Nifty
Consider we have 250 trading days in a year.
Nifty lot size : 50
Slippages and Brokerage points deduction: 5 per day
So in a day irrespective of profit/loss, we need to pay = 50*5=Rs.250 as slippages and brokerage considering the algo takes only one trade(buy&sell).
In a year we end up paying Rs.62,500 as slippages n brokerage, which is 1245 points in a year.
Again Symphony algo fee is Rs. 50000 which is another 1000 points.
In order to break even we need to make 1245+1000=2245 points minimum in a year.
This is for just one lot calculation, increasing lot size increases slippages n other costs.
The impact much higher if I opt for Stock futures. As said earlier 80% of my strategy's profit was coming from 20% of trading days(trending days), but remaining 80% trading days are range bound days which would have huge impact because of slippages.
When I was trading this setup manually there was slippages but was still profitable. I did not realize that on a long run I will not be profitable at all trading that system.
I did not realize slippages will have such an impact, only after trading in Symphony simulation environment i realized it.
ahhh.. man... after trying so hard for past couple of months with all dreams that I would start algo from Monday.. finally everything got shattered..
Anyways everything happens for a reason, Good thing is I realized it before I GO LIVE, or else I would have lost lacs and realized it later. I seriously accept my defeat, there is lot more I need to work on.
With all new Hope and strength, will try to do what am good at rather than spending time on finding a system.
Request Mod to kindly close the thread.
Consider we have 250 trading days in a year.
Nifty lot size : 50
Slippages and Brokerage points deduction: 5 per day
So in a day irrespective of profit/loss, we need to pay = 50*5=Rs.250 as slippages and brokerage considering the algo takes only one trade(buy&sell).
In a year we end up paying Rs.62,500 as slippages n brokerage, which is 1245 points in a year.
Again Symphony algo fee is Rs. 50000 which is another 1000 points.
In order to break even we need to make 1245+1000=2245 points minimum in a year.
This is for just one lot calculation, increasing lot size increases slippages n other costs.
The impact much higher if I opt for Stock futures. As said earlier 80% of my strategy's profit was coming from 20% of trading days(trending days), but remaining 80% trading days are range bound days which would have huge impact because of slippages.
When I was trading this setup manually there was slippages but was still profitable. I did not realize that on a long run I will not be profitable at all trading that system.
I did not realize slippages will have such an impact, only after trading in Symphony simulation environment i realized it.
ahhh.. man... after trying so hard for past couple of months with all dreams that I would start algo from Monday.. finally everything got shattered..
Anyways everything happens for a reason, Good thing is I realized it before I GO LIVE, or else I would have lost lacs and realized it later. I seriously accept my defeat, there is lot more I need to work on.
With all new Hope and strength, will try to do what am good at rather than spending time on finding a system.
Request Mod to kindly close the thread.
sorry to hear , but pleased that u spot it before live session ,
u r a good person , keep trying , u will be suceed in future , don't loose hopes , as it is hope that stay us hungry toward sucess .........
best of luck for future .....:thumb::thumb:
