Hi new2markets,
What you have asked is something so exhaustive that it will probably take a few pages to write about all of this... But in brief:
We trade Indian markets only, most of the platforms presently letting you trade international markets are illegal(refer the latest RBI circular on them). RBI lets you invest 200k dollars every year in foreign markets, but with the condition that it is not leveraged positions... Most of the present guys who let you invest abroad give you CFD's to trade on which is inherently leveraged....
Both futures and options...
%return expectation as an individual was different then while trading for a prop desk... As an individual I was a scalper so return expectation was pretty high(5-10%/month), but trading for a prop desk returns expected are 15-20% /year...But when trading for the desk though returns expected is 15-20%/yr, the absolute returns can be much more because of the leverage we get on arbitrage trades...
As an individual it always used to be intraday... As a desk, could be anything, but the key being we are not betting on directions, rather betting on volatility which is much more easier to call...
Market inconsistencies very simply are mispricing that happens in futures and different strikes of options...Mispricings can occur for a few seconds and may extend up to a few days...
Yes completely automated...
Tool we use is called algostudio, we use a broker version of it...Costs around 2.5 lks/month for 5 terminals.... Other than this, for our strategies it is very important to run this at the exchange... Exchange gives out rack space on it, the benefit of having this here is because the programs get the quotes faster than anyone else in the country and also the latencies are awesome(order execution speeds are just crazy)... Getting a rack space is another Rs 20lks plus the cost of the system (server) to install.....
At a single time there could be as many as 100+ strategies running simultaneously and on days like today(expiry), we could have as many as 1000 different trades...
We have been running this from last April and we are up 13% on the strategies, but the leverage on arbitrage trades makes the absolute returns much much higher....
Presently the strategies that we use work because not many people are still in this space in India.... As more people enter, we will have to keep figuring new things, there is no guarantee on how long or profitable a strategy can be....
Initially the help comes from the vendors itself...
Personally trading from when I was 17, am 29 now, so 12 years... Have gone bust twice, 2001 and 2004 ... Have been profitable the last 6 years, with 2009 being a loss making year... 2006,07,08 were very easy to trade as the trend of the market was so clear.... 2008 was a dream.... 2009 ate away atleast 30% of what was made in 2008...the months when it was just stuck to a range, killed the trading.... 2010 onwards has been with Zerodha and is pretty peaceful ....
Active trading(scalping, intraday trading etc..) is like playing a T20 everyday.. it becomes imperative to give rest otherwise we risk a burnout...The mistake most people commit is that they spend too much time on CNBC, books etc and by the time the market opens they are too tired to trade.... If you want to give time to learn, give it completely, don't mix it with trading... Give 6 months to learning and then come back and trade... When you trade, take it easy after the markets close, don't worry what happens to dow everynight or asian markets early in the morning.....You have no control on these and it makes no difference on worrying about things which are not under your control...
What is under your control are your trades, your entries, your exits and your stops.... Think about these....
A lot of Indians don't think about it , but a fit body is a state of fit mind... So very important to take care of your body, exercise or choose a sport(not cricket
) , run , cycle or whatever that makes you happy...It is a very important aspect to trading actively....
There might be a few who might disagree, but that is the beauty of markets, we all can have different opinions and exist simultaneously....
Since you are new 2 markets... happy learning and trading.... Cheers....
What you have asked is something so exhaustive that it will probably take a few pages to write about all of this... But in brief:
We trade Indian markets only, most of the platforms presently letting you trade international markets are illegal(refer the latest RBI circular on them). RBI lets you invest 200k dollars every year in foreign markets, but with the condition that it is not leveraged positions... Most of the present guys who let you invest abroad give you CFD's to trade on which is inherently leveraged....
Both futures and options...
%return expectation as an individual was different then while trading for a prop desk... As an individual I was a scalper so return expectation was pretty high(5-10%/month), but trading for a prop desk returns expected are 15-20% /year...But when trading for the desk though returns expected is 15-20%/yr, the absolute returns can be much more because of the leverage we get on arbitrage trades...
As an individual it always used to be intraday... As a desk, could be anything, but the key being we are not betting on directions, rather betting on volatility which is much more easier to call...
Market inconsistencies very simply are mispricing that happens in futures and different strikes of options...Mispricings can occur for a few seconds and may extend up to a few days...
Yes completely automated...
Tool we use is called algostudio, we use a broker version of it...Costs around 2.5 lks/month for 5 terminals.... Other than this, for our strategies it is very important to run this at the exchange... Exchange gives out rack space on it, the benefit of having this here is because the programs get the quotes faster than anyone else in the country and also the latencies are awesome(order execution speeds are just crazy)... Getting a rack space is another Rs 20lks plus the cost of the system (server) to install.....
At a single time there could be as many as 100+ strategies running simultaneously and on days like today(expiry), we could have as many as 1000 different trades...
We have been running this from last April and we are up 13% on the strategies, but the leverage on arbitrage trades makes the absolute returns much much higher....
Presently the strategies that we use work because not many people are still in this space in India.... As more people enter, we will have to keep figuring new things, there is no guarantee on how long or profitable a strategy can be....
Initially the help comes from the vendors itself...
Personally trading from when I was 17, am 29 now, so 12 years... Have gone bust twice, 2001 and 2004 ... Have been profitable the last 6 years, with 2009 being a loss making year... 2006,07,08 were very easy to trade as the trend of the market was so clear.... 2008 was a dream.... 2009 ate away atleast 30% of what was made in 2008...the months when it was just stuck to a range, killed the trading.... 2010 onwards has been with Zerodha and is pretty peaceful ....
Active trading(scalping, intraday trading etc..) is like playing a T20 everyday.. it becomes imperative to give rest otherwise we risk a burnout...The mistake most people commit is that they spend too much time on CNBC, books etc and by the time the market opens they are too tired to trade.... If you want to give time to learn, give it completely, don't mix it with trading... Give 6 months to learning and then come back and trade... When you trade, take it easy after the markets close, don't worry what happens to dow everynight or asian markets early in the morning.....You have no control on these and it makes no difference on worrying about things which are not under your control...
What is under your control are your trades, your entries, your exits and your stops.... Think about these....
A lot of Indians don't think about it , but a fit body is a state of fit mind... So very important to take care of your body, exercise or choose a sport(not cricket
) , run , cycle or whatever that makes you happy...It is a very important aspect to trading actively.... There might be a few who might disagree, but that is the beauty of markets, we all can have different opinions and exist simultaneously....
Since you are new 2 markets
... happy learning and trading.... Cheers....
