What is Algo Trading with Zerodha Streak ?
Streak is a PAID platform provided by Zerodha to develop and backtest your own strategies based on technical analysis indicators.
Do they have a FREE plan?
No. But if you are a new user, you can use this link to get 7 days free trial. Also you get 150 points for free which you can use it to get 1 month plan if you refer 1 more person using their referral plan. te300 points required to get 1 month free plan.
https://ref.streak.tech/J2UcyHfUvfxoSooJ8
What is the Zerodha Streak Platform Cost?
Their Monthly Regular Plan costs Rs.814.20 (including GST) and Ultimate Plan costs Rs.1,652 (including GST). You will receive discounts if you choose to pay for them quarterly or semi-annually or annually. Also they will have some offers happening during festival season for long term plans.
Can I do auto trading with zerodha strip?
No. You CANNOT AUTOMATE TRADING with Zerodha Streak. It is a type of semi-automated or alert system. You will receive a notification on your mobile phone, email and within your stripe account. If you choose to act on it, a trade order will be placed, otherwise nothing happens. Please be aware of the square charges of Rs.59/- from zerodha if you do not square your intraday positions by 3:15 pm
Advantages:
You don’t need to manually scan and check all stocks for a trading opportunity. Whatever stocks match your selection criteria from your strategies match the required condition, you will receive a notification to enter the trade.
Cons :
The real downside of stripe is, you only have to control your business with a stripe login. You CANNOT set the STOP LOSS order inside a strip, you will have to monitor the stocks you bought/sold and manually start a square when a stop loss/target is reached or if you decide that the profit/loss for that trade is enough.
What are the Brokers Supported by Zerodha Streak
- Zerodha
- Angel One
- 5 Paisa
- Upstox
- ICICdirect
How to use Zerodha Streak if you trade using other brokers for your trade?
Unfortunately there is no direct way for this. But you can always open your account with Zerodha through this link and register for streak. Then set up a paper trade for your strategies in a strip, whenever you receive paper trade notifications, you can do the same trade in your own brokerage account. Note: Please test for time delay (if any) between paper trade notifications and actual trading stock at that time before you make actual trades based on this.
It will cost you one more AMC in Zerodha if you prefer to trade with other brokers.
Can anyone without technical coding set up an algo in Streak?
Yes. You can use their Help and Academy sections to learn new technical indicators and implement or test while creating your own strategies in Streak.
How much ROI is good to start trading with real money?
There is no direct answer for this question. It depends on the basis of the number of trades started, number of profitable trades, number of failed trades, what is the P&L generated before and after trading etc. Even if 20% ROI is achieved, it is of no use if the P&L after brokerage is in. NEGATIVE, but even 5% can be very good if it is the P&L AFTER ADJUSTMENT FOR BROKERAGE FEES.
How to Set Manual Stop loss and Target while using Streak?
Instead of starting a trade directly from a strip when you get a live trade signal, go to your Zerodha Kite account, add the script, place a manual MIS order with both Stop loss and Target so you don’t need to manually track your position for each stock. However you must square your intraday positions by 3:15 pm otherwise zerodha will charge you Rs.59/- per square charges.
Sample Strategy Results using MACD and RSI (INTRADAY TRADING for 3 months)
Rs.21,410 /181 Trades = Rs.118 profit per trade after trading (including failed or losing trades).
Please note that it is BACK TEST results for a specific time period, the results will change when you change the period and there will be a difference between back test, paper trades and real trade based on many other factors. Eg: MARKET ACCOUNT/LIMIT set by you at that time and actual position you got at that rate etc.
Results of a Bearish Trend Based Reversal Strategy (3 Months)
If you see the results below, you will wonder how our ROI is POSITIVE despite more losing trades than winning trades, the reason is simple Stop loss at 2% and Target Profit at 8%. As you can see, JKPAPER had only 9 profitable trades with 8% target = 72% – 16% = 56% profit. For more than 107 trades the net profit after trading is Rs.83,874.05 ie Average profit of Rs.783 per trade including the failed trades.
So the ROI and actual profit should be the goal, not the percentage of success alone. If you set you own strategies for some writings for most frequently used methods, you will hardly see 2% or 3% ROI after trading. ALWAYS CHECK THE RISKS button below to see the ROI AFTER RISKS otherwise it will be misleading information for you.
Frequently Asked Questions :
Will all methods work for all scriptures?
No, NEVER. The same logic I set up for the above stocks will fail miserably for other stocks. Test, Retest, optimize is the way to go. You can test your strategy with 50 stocks at a time and you are allowed to do up to 300 backtests per day with a REGULAR plan. So delete all losing writings and the writings with ROI less than 5% etc based on your requirements.
Why the same strategy with good results does not work in paper trading or real market?
Because market involves various factors and THERE IS NO GUARANTEED METHOD available with anyone to book only profits with all trades. The success depends on the overall +VE ROI received from multiple trades daily, weekly and monthly. Never limit your strategy with a single stock, always diversify with at least 5 different pens with good ROI on each of your strategies.
What is the IDEAL ROI% to expect!
I really can’t answer this myself. Greed and Fear are wonderful emotions, Greed will ask for more when you start booking profits regularly. Fear will ask you to exit the market after few failed trades. How much ROI is enough should be best decided on your own. A range of 5% to 10% within 3 months can be reasonable (which is still much better the Bank ROI) but to expect as 20% or more every month is IMPOSSIBLE (at least for more than 99.9% of the traders). Never forget that YOUR MONEY IN THE MARKET IS ALWAYS AT RISK and never as safe as being in a Bank Deposit or Cash in your Closet, always be aware of the same. INVEST ONLY WHAT YOU CAN LOSE TO LOSE.
What is the IDEAL amount to Invest for Intraday
At least Rs.50,000/- would be needed to see any daily income with around 2 to 10 trades per day. If you can’t pay that much even Rs.20,000/- could help but be aware that not much margin will be available for multiple trades for that amount and thus limits your profitable trading potential and also increases the risk of more failures because only few traders every day. are possible. NEVER TAKE ANY STRATEGY DIRECTLY LIVE WITHOUT RESPECTING THE ROI you see in back test results. TRY THEM IN PAPER TRADING FOR AT LEAST 5 TRADING DAYS BEFORE THE STRATEGY FOR LIVE AND TRADE WITH REAL MONEY.
What are the RISKS in Algae Trading?
- Same script, same strategy and same algorithm will perform differently in different market trends. ie Bullish, bearish or Side market. So back test your strategies for 3 different market trend periods to test it out.
- Bearish Trends are more powerful than Bullish Trends. A fall may be sudden, but recovery will take time, especially true for a delivery based business.
- Even if you do a short trade by selling first, there are chances that a stock will reach its upper freeze level like 5% or 10% in the first 15 minutes, so always start trading only after 9:30 AM, if possible only after 9:45 AM . . In intraday trading 5% loss converts into 25% capital loss and 10% loss converts into 50% capital loss, so be aware of the same.
- Not all pens are allowed for MIS trading in Zerodha. Don’t get carried away by amazing ROI shown in strip, it’s no use if they don’t have 5x margin in zerodha.
- Algo trading discounts all news, feelings, emotions, events etc. so you should avoid the writings that have events on that day like results, merger etc for live trading.
- There can be a streak of loss making days if the market trend is extremely bullish or bearish, choose to avoid trading on those days or be prepared to bear those losses and hope to recover it in the subsequent period.
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