Hey, i wanted to ask if anyone of you has a strategy doing >500 trades a day and is profitable with it?. What strategies do so many trades other than hft like arb or mm? Would you be up to talk a little? Regards
the only people doing 500 trades and not 500 contracts of course are people who have edge. once you have edge then you do more and more trades or contracts at some point your edge will be diminsihed due to too many contracts especially since doing a lot of trades and all of that slippage and fees becomes a real problem. so you must understand that it all depends on your edge which should be highly defineable with PROFIT average per contract. which means 100 profit on 20 contracts traded total = 5 dollars or in your example. 500 trades if you did it per flat to flat trade then you would have made 4 cents a trade net of all fees. this is why HFT they say makes 2 cents a contract or a trade because you take out the losses from the gains and you get a net $ per share or contract. yes i have traded over 1000 contracts in a night /day numerous times unhedged and outright no worries
I have passed 1.5 million trades so far this year. It is not high-frequency. Everything is written in Python. The reason I do such a large number is mainly due to better risk control than anything else Have been profitable since 2014