Blogs Details

  • Home
  • >
  • Blogs Details

About BearStreet

BEARSTREET RESEARCH AND ANALYSIS PRIVATE LIMITED is a gateway to the international stock markets. As we know, US stock market (NYSE, NSDAQ, ARCA, BATS, BOSX, Etc.) is the biggest stock market, both by listings & volumes. It is not just biggest; it’s also the most diversified market. The largest and most innovative companies are listed at US exchanges..

Got any Questions?


Profitable Day Trading Formula:- Part-I

Profitable Day Trading Formula:- Part-I

1. Algo Trading Strategy 
2. Manual Trading 
Stock market trading is a risky segment and before start trading business, keep in mindthe fund can be goes in lose. But the object the every trader is to make profit from trading. So profit or loss in trading depends on the capability of the person who is doing trading. Today I will try to explain about point No. 1 
If a person wants to start algo trading, then how he able to start trading:- 
1. Trading Account with any stock broker:- Its easily available but before open the trading account the traders must be negotiate about the brokerage/commission. The higher side of brokerage /commission kill the profit of the trader. 
Aglo trading software:- The arrangement of algo trading software is also not a big deal. These days several technology companies are working for algo trading software. Here a big deal is to search brokers who have plugins for the algo trading software to enable trading with the algo software. When a trader is in process to search of algo trading software and brokers he must be keep in mind about the latency in order execution and trading management. 
2. The day trading strategy which makes profit:- This is the biggest deal in the algo trading and it’s something tough to get it. In corporate sector a team always works for making profitable strategy. These days to find out any profitable strategy take several weeks and months because it’s all a trial and error method. Once a team able to make profitable strategy the company use the strategy on past data or simulation trading. After a long period of back testing the strategy use in live trading. 
Here I am not saying only corporates and team is only able to make profitable strategy. Sometime individual also able to make good profitable strategy and they make good profit from trading. 
Sometime the team of corporate or individual’s workout several months to create a profitable day trading strategy and not able to get profitable strategy. May be they fail to design or maybe they fail at the time of back testing and sometime after all its not profitable in live market. 
3. Sometime new peoples understand the algo trading is always profitable or one strategy always work and profitable but here I want to clear those peoples, it’s not always profitable. The strategy works in a period of time. It’s depending on market to market and scripts or symbols to symbols.  Also it’s depending on trained, volume and other components which have used and match with the strategy and execute the trading. 
4. Cost involve in algo trading:-
a) Cost of the algo trading software
b) For algo trading orders management the broker can be charge something extra as commission.
c) The traders may have to pay one time or monthly for the strategy or maybe share profit with the strategy provider. In such case the strategy provider or algo software provider do not involve in any loss. 
5. In algo trading colocation server is the good option where the latency issues not kill the opportunity. But again it’s all are cost effective and most of the benefits goes to corporates because the investment of time, and money is something tough for manage by individuals. 
I am just shearing here about algo trading for which people who just heard about Algo Trading and start to think, it’s much profitable and in planning to start. It’s because these days such words are coming in use for marketing purpose and the sales peoples are trying to convert traders to as a client.  

Sign Up for Newsletter

We’ll be with you on every walk of life on how to identify new opportunities.