Zerodha Part 2

[vikrit]

http://www.zerodha.com/z-connect/blog/view/software-engineer-up-400

Food for thought for the weekend, an interaction with one of our winners..

Zerodha,

great efforts! :thumb:

can you also post a graphical presentation of their overall accounts with their interviews,
not actual figures but percentage wise. some thing like this -

 

[arcus]

Nice read..thanks for that Zerodha.

I was looking more for what he looks in a trade, what trade set ups he follows, what he considers as his plus point etc Some more deep insight on how he trades without knowing the specific entries/ exits etc...

25 % risk on a single trade....hmmmm too high for a professional trader.....but ok for someone who has a job and a side stream of income flowing in.

But that is not to undermine the excellent performance for which he gets full appreciation.....well done ....

Smart_trade

I think what he meant was that if he had 1L in his account, then he would trade 1 Nifty futures contract (which requires around 25k as margin). His stop loss risk might be around 2-5% (I'm guessing).

He probably captured most of the swing upmove and the subsequent swing downmove in the Nifty.

One must also not forget that the trading capital and amount with the broker are not the same.

I have a trading capital of 1L and I made around Rs 3890 in the Zerodha challenge. However, the amount I kept with Zerodha was around Rs 22,500.

While I actually made 3.8% in the 3 month period, for Zerodha it may appear as if I made around 17% as I deposited only Rs 22,500 with them.

- arcus

 

[abliss_ready]

The data could seem a little skewed because I am not really giving it a weighted average, calculating it as a simple average for now.

By average trade size, I meant the average bet size for every trade. Again there are a bunch of guys who keep taking 100% of capital as bet size which skews the data, but 15 to 20% should be the true bet size data once I can clean out these spikes.

As smart trade has put up, with 6 trades/day is skewed because some of the traders who are trading 20 to 30 trades a day. 60% of the winners are in the 1 to 2 trades/day range.

Zerodha,

When you say bet size is 15 to 20%, does it mean that the maximum amount being risked per trade is 15 to 20% of the total money in their account?

For example do you consider bet size as 15% if:
I have 1 Lakh in my trading account. I get into a trade and set a stop loss such that if the stop-loss is triggered, I would lose 15000 Rs.

Thanks

 

[TraderRavi]

Zerodha,

When you say bet size is 15 to 20%, does it mean that the maximum amount being risked per trade is 15 to 20% of the total money in their account?

For example do you consider bet size as 15% if:
I have 1 Lakh in my trading account. I get into a trade and set a stop loss such that if the stop-loss is triggered, I would lose 15000 Rs.

Thanks

IMO its amount put per trade, like on 1 lakh capital, share purchased worth 20k , so bet size 20%...........

 

[Zerodha]

Zerodha,

great efforts! :thumb:

can you also post a graphical presentation of their overall accounts with their interviews,
not actual figures but percentage wise. some thing like this -

We have planned something around this, will take us a while to get there, but will keep you all posted, it might take us around 3 months more, but it will according to me will be the craziest report a trader can get to improve his skills. We haven't seen any brokerage around the world give it, I am super excited, but don't want to announce anything in a hurry. This report I am talking will be for each one to analyse his own trading.

For the winners of the challenge, we can't reveal too much information, we can only do as much as they authorize us to.

 

[Zerodha]

I think what he meant was that if he had 1L in his account, then he would trade 1 Nifty futures contract (which requires around 25k as margin). His stop loss risk might be around 2-5% (I'm guessing).

He probably captured most of the swing upmove and the subsequent swing downmove in the Nifty.

One must also not forget that the trading capital and amount with the broker are not the same.

I have a trading capital of 1L and I made around Rs 3890 in the Zerodha challenge. However, the amount I kept with Zerodha was around Rs 22,500.

While I actually made 3.8% in the 3 month period, for Zerodha it may appear as if I made around 17% as I deposited only Rs 22,500 with them.

- arcus

arcus, we have to go by with what is with us is a trading capital. If we had to start asking people what their trading capital is, then it is a human tendency to say that I have a lot more in the bank.

Hence the guys we are profiling will be all people who have a decent sized capital in the trading account compared to the background they come from.

 

[Zerodha]

Zerodha,

When you say bet size is 15 to 20%, does it mean that the maximum amount being risked per trade is 15 to 20% of the total money in their account?

For example do you consider bet size as 15% if:
I have 1 Lakh in my trading account. I get into a trade and set a stop loss such that if the stop-loss is triggered, I would lose 15000 Rs.

Thanks

Bet size is the maximum bet he takes for one trade, not the maximum loss.

So if he has 1lk he won't take a position bigger than 25k on a trade.

http://www.zerodha.com/z-connect/blog/category/winners is the section where we will keep profiling, we have a lot of different kind of traders who are winning..

 

[vikrit]

We have planned something around this, will take us a while to get there, but will keep you all posted, it might take us around 3 months more, but it will according to me will be the craziest report a trader can get to improve his skills. We haven't seen any brokerage around the world give it, I am super excited, but don't want to announce anything in a hurry. This report I am talking will be for each one to analyse his own trading.

For the winners of the challenge, we can't reveal too much information, we can only do as much as they authorize us to.

looking forward for the report for own trading analysis.

can understand the privacy part of winners, i meant by their consent only. As they are ok with revealing their percentage gain, they might be agree for EOD performance report on percentage basis.

Basically, just wanted to see their drawdown or negative days, they had in this period if any, or ever they need to add more money to day 1 capital of this challenge to keep positions etc. So, if possible and winners agree, then share this type of reports.

 

[marker]

Hello Zerodha,
I just got a mail from Zerodha (Update on 60-Day Challenge), saying "An update on the challenge is to keep it as a continuous feature at Zerodha, we will declare only those traders as winners who have been trading actively throughout the challenge. We will also not consider clients who have stopped trading after making small profits or any other such attempts. ".
Does that mean 60 day challenge is going to be continue beyound Aug? :clap::clapping:
How do you decide who is actively trading and who is not? Different peaple have different trading profiles right? Somebody may have a few minutes as time base and somebody else may have a week as time base?

Regards
marker

 

[Zerodha]

Hello Zerodha,
I just got a mail from Zerodha (Update on 60-Day Challenge), saying "An update on the challenge is to keep it as a continuous feature at Zerodha, we will declare only those traders as winners who have been trading actively throughout the challenge. We will also not consider clients who have stopped trading after making small profits or any other such attempts. ".
Does that mean 60 day challenge is going to be continue beyound Aug? :clap::clapping:
How do you decide who is actively trading and who is not? Different peaple have different trading profiles right? Somebody may have a few minutes as time base and somebody else may have a week as time base?

Regards
marker

It actually becomes pretty obvious, people who stop and trade on a different account and etc. Actively trading according to that particular person's trading style..