Zerodha - Number One Discount Broker in India

[yusi]

Remember the issue about Backoffice passwords being kept unencrypted by Zerodha? Read the following email conversation that I just had with them last week (exactly after a year the issue was raised).

It has been a long vigil. d:-o

 

[reenumlk]

zerodha,

Today i placed a SL-M Buy order to buy TCS Oct Fut with trigger price 2085.20 around 2 pm, although TCS Future never reach to that level after 2 pm(even after 11:30 am), but my order got filled at 2:18 pm at 2086.25, How can it possible?
Please look at the data table High at 2:18 pm was 2084.55,( i also check at NSE website the high at 2:18 pm was 2084.55 ) then how my order got triggered and filled at 2086.25 ?

 

[reenumlk]

deleted....

 

[yusi]

It will not help you if the equivalent table from Odin is shown :

 

[bpr]

It will not help you if the equivalent table from Odin is shown :

why the data not matching?

 

[Vik22]

Earning 15% per month is very much possible. I have seen some good traders on this forum who also claim to make 15% per month like the moderator Smart_trade.

With cover orders and 20 times leverage, earning 1.5 lakh average pm with maximum leverage can compress the required "working capital" (50K) and make it a fraction of the actual trading capital (10L).

That would make it a reasonable 15% per month return on trading capital.

Many traders however may fail to understand that and may start to act recklessly watching such apparent 200% returns per month.

Both Zerodha and the trader should mention explicitly that this is only a portion of their actual trading capital. What some traders would like to refer to as "working capital".

Without that, the interview itself becomes a mere sensation rather than a guiding voice.

All of the Market Wizard interviews and even the book by Alexander Elder called "Entries and Exits" which is a series of interviews of profitable traders measure returns as a percent of the "trading capital" as opposed to just the "working capital" with the broker.

No one and i mean no one in the world can do 15% a month on any acct worth note for any time worth note. Read this again, btw you're comments on working capital etc are spot on.

 

[Vik22]

Re: NEST chart

yup, u r right,nest plus is pathetic,we have to switch time frame each and every time,and it takes a hell lot of time to load, there is no setting to open a chart in default time frame:annoyed:,amibroker is ok but data services to run it take a lot of interenet bandwidth,some website are giving data in mt4 but its not reliable and not fast enough.

Have you actually used the Amibroker plugin yet? With GDFL or anyone else. If so, how was you're experience there? Ignore the bandwidth for now, lets assume u had 4 MBps.

 

[Vik22]

@zerodha, I hope you can incorporate some position sizing tools in yr kick-ass terminal. Also please start a blog on position sizing and money management, esp customized for small accounts of 1-2lakh size

There is no reason for a blog, ill tell u right here.

One LAkh acct.

Assume you take 1% risk per trade (anything over 2% is considered gunslinging btw), so ur risk is Rs 1000 per trade.

Say ur stop is 7 pts, plus 1.3 (approx for breakeven, plus spread ( so for safety, lets call ur BE 2 pts) hence a 9pt risk.

9 pts = 1000 1 pt = 1000/9 rs 111 per pt = two lots or 100 shares of nifty.






Note with one lakh and a 1% risk o meter, you can never do a trade with a stop more then 18 pts plus 2 = 20 pts. So u will pretty much scalp the 1 min chart.


Now if u have 5 lakhs, and use 1 %, u can take one lot for a 100 pt stop, 50 times a 100 = 5000 = 1 % of 500,000



Similarly for stocks


lets assume reliance is at 900 and u take a stop of 50 pts whilst working with a roll of 50 lakhs and a risk preference of 0.5%.

Well 0.5 % of 50 L = 25,000

so 50 pts = 25000 (we can ignore the breakeven here as the stop is large (this btw is exactly why daytrading is HARD, VERY HARD because of the smaller stops, hence the spread and transaction charges have a huge influence)

1 pt = 25000/50 = 500 so each pt = Rs 500 whi equals 500 shares of reliance

so a capital outlay of 900 * 500 = 4.5 Lakhs.



If this was not clear, i can explain in more detail via email, where i can write better :}.


be ez.


P.S. all the above changes from person to person and ur own personal risk appetite and utility profile, some dudes like 5% risk and can handle it.

Kelly criterion gives u a less then 5% risk of ruin (ROR) chae wit 50 bets (2%), or less then 1% (0.86%) with a 100 bets, IF UHAVE a +ve edge that is.

P.S. 2 There are literally a 100 different ways to position size, this is what is called fractional percentage and a very popular and suitable method for begginners and pros alike, you bet more when winning and less when losing, the key to speculation is that btw.

 

[Vik22]

Re: how come zerodha is costlier compared to sharekhan

m from gujarat!

ur xplanation simply means that zerodha cost is not in favor of retail clients till they trade 2 lots (if i take nifty as an example) in one GO on an average! beyond that zerodha is cheaper.

in detail if u see, stamp duty is 0.01% of TO or 50/- whichever is lower. so till 5lacs of TO, i will be charged only 50/- or lower the cost which is getting offset by my broker who charges 0.01% as brokerge on total TO (u only 20/- per trade)!


in short, if i take nifty as example, any broker who offers 0.01% brokerage is:

• cheaper than zerodha till 1 lot per trade or with TO less than 5lacs
• at par with zerodha till 2 lots per trade or TO less than 5 lacs
• costlier than zerodha for more than 2 lots per trade or TO more than 5 lacs

same goes with options trading as ur definition of TO is lot size * (strike price + premium) which u take to calculate stamp duty of 0.01%, which is again not the csse for other brokerages which will only charge me 0.4-0.5 only for a nifty contract! so options trading with zerodha is profitable only if i trade more than 3 lots per trade otherwise its damn costly!

so zerodha is not for retail traders like me.

I do not know why everyone just does not get this.


Obv if a broker charges 20 in 20 out, u WILL save more when doing 10 lots as opposed to 1.

Matter o fact the BE at 1 lot is 2 pts at 10 lots is 1.18 pts

and this is obvious, why is also obvious, now please deal with this, ty.

Nothing personal xsis but u r the 10 th guy at least who has brought this up

and Gluck.

 

[tradetolearn]

Re: NEST chart

Have you actually used the Amibroker plugin yet? With GDFL or anyone else. If so, how was you're experience there? Ignore the bandwidth for now, lets assume u had 4 MBps.

Sorry i never used any plugin with amibroker.