Hello there,
I have been using Tradetron for a few months now and have had some moderate success with my algorithmic trading strategies. Although, I feel there is a lot of room for improvement, particularly in the area of risk management.
As of now my strategy involves trading in Nifty and Bank Nifty options with a mix of intraday and positional trades. While the returns have been decent; I have noticed that my drawdowns can be quite significant at times.
I typically use a fixed lot size for my trades. I have read about dynamic position sizing based on volatility and account equity, but I am unsure how to implement this effectively in Tradetron. Any tips or examples would be greatly appreciated.
Setting the right stop loss and take profit levels has been challenging. I usually set a percentage based stop loss; but it sometimes results in premature exits. How do you determine optimal levels for these parameters?
I have read about using hedging to manage risk; but I am not quite sure how to integrate this into my existing strategy. Can anyone share their experience with effective hedging techniques; especially in the context of options trading?
Also; I have gone through this post: https://tradetron.tech/blog/four-common-mistakes-to-avoid-in-algorithmic-trading-mlops which definitely helped me out a lot.
While I do backtest my strategies; I often wonder if I am doing it correctly. Are there best practices or specific metrics I should focus on to ensure my backtests are robust and reliable?
Thank you in advance for your help and assistance.