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Algo Trading Basics

This document defines and provides examples of common trading terms that all traders should know, including average profit on winning days, average loss on losing days, expectancy, expectancy ratio, maximum drawdown, and backtesting and execution platforms. It recommends ideal strategy characteristics and provides details on option selling services and a 10-17 lakh basket strategy.

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Rajvin Donga
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Download as PPTX, PDF, TXT or read online on Scribd
122 views

Algo Trading Basics

This document defines and provides examples of common trading terms that all traders should know, including average profit on winning days, average loss on losing days, expectancy, expectancy ratio, maximum drawdown, and backtesting and execution platforms. It recommends ideal strategy characteristics and provides details on option selling services and a 10-17 lakh basket strategy.

Uploaded by

Rajvin Donga
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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TRADING TERMS WITH

EXAMPLES ALL TRADERS


SHOULD KNOW
AVERAGE PROFIT ON WIN DAYS
 Avg Profit refers to the average profit per trade in a
trading system. It is calculated by taking the total profits
from all winning trades and dividing by the total number
of winning trades.
AVERAGE LOSS ON LOSS DAYS
 Avg Loss refers to the average loss per trade in a trading
system. It is calculated by taking the total losses from all
losing trades and dividing by the total number of losing
trades.
WHAT IS EXPECTANCY
 Expectancy is what it sounds like. It helps you
understand how winners, losers, gains and losses relate
to each other over the long term. This process helps you
understand what your trading system profits should be,
and helps validate your backtesting.
 Steps for developing expectancy

 1. Calculate your win and loss ratio


2. Calculate your reward to risk ratio
3. Combine those two ratios into an expectancy ratio
 Reference : https://www.learningmarkets.com/determining-expectancy-in-your-trading/
EXPECTANCY RATIO

 (Reward to Risk ratio x win ratio) – Loss ratio =


Expectancy Ratio

 At this point we can combine these two numbers to


create an expectancy ratio

 (1.61*69)-31 = 0.80
LIVE 10LAKH SYSTEM
MAX DRAWDOWN
 Maximum Drawdown (MDD) is a measure of the largest peak-
to-trough decline in a trading system's equity.
 It can also be defined as the largest drop in portfolio value
from a peak to a subsequent low.
 It is typically expressed as a percentage and is used to measure
the risk of a portfolio or trading system.
ALGO PLATFORMS
 Backtest Platform : Stockmock
https://www.stockmock.in/#!/signup?rb=95771

 Execution Plaform : Quantiply


https://app.quantiply.tech/auth/signup?referral=KBG5NB6
P

Signup on Stockmock using above link and using the same


number Signup on Quantiply using above link only and
You can get 10% Off on Subscription plans
WHAT SHOULD A STRATEGY HAVE
IDEALLY
 Option Selling
 Win rate: 65%+

 Risk Reward 1:1.5

 Individual Expectancy > 0.4

 Whole Basket Expectancy > 0.7

 Individual Drawdown < 12%

 Basket drawdown < 6%

 DD days = 1 - 2 months max

 Max loss per day : 2%


OPTION SELLING SERVICES
 If you are a trader who has 4+ lakh Capital and looking to
automate option selling strategies then you can contact or
call 7674007938

 https://
drive.google.com/file/d/1s7As5V54lLMInFIIueCOLF5anLp
U8f4D/view?usp=sharing

 For backtest on various capital use the above Link


 Whatsapp for Algo Trading Details : wa.link/c1jiln

Note : Strategies can be customised according to your capital


10 -17 LAKH BASKET
 5 Strategies , 3 have Re entry , good for Reversals Volatile
Markets as well
 Can be traded with 10L to 17 Lakh , by increasing lots

 Strategy explained : https://youtu.be/-Fy24GdsTls

 Whatsapp for Algo Trading Details : wa.link/c1jiln


Whatsapp for Algo Trading Details : wa.link/c1jiln
Follow us on
Twitter Link :https://tinyurl.com/JayneshKasliwal
Telegram Link :tinyurl.com/TechnoChartsTelegram

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