Showing posts with label duration. Show all posts
Showing posts with label duration. Show all posts

Friday, November 20, 2009

Identifying Overtrading

What are the parameters to identify Overtrading by Active Traders?
Some of the following can be of help.
  1. Number of Trades
  2. Total Trading Volume
  3. Vig to Trading Capital Ratio
  4. Number of Instruments Traded
  5. Duration in the Trade ( minutes held)
  6. Number of Orders Placed / Cancelled Orders
  7. Number of Unplanned / Impulsive Trades ( which are based on " Breaking News", Based on Other Traders's Positions, Reacting to Opinions of Other Traders )
  8. Position Size in a single Trade ( Above Avg Size)
  9. Number of positions at a particular point of time ( More than two ?)
  10. Tight stoplosses ignoring the Logical stops ?

As I struggle to cut down overtrading , I understand the Broker's ( Market Infrastructure's) way of turning thr trader's networth into his own through VIG, SPREAD, SLIPPAGE.

Market Structure differences 2010 Vs 2020

Some of the changes I have observed in Market structure in 2020 compared to around 2010 Huge increase in trading Volumes Predominant ...