How to Select the Best Algo Strategy Combo for ₹5 Lakh Capital at 1x Quantity?

Stratzy Algos
1

Hi everyone,

I want to start a discussion on how to select the best combo of algo/strategies with ₹5 lakh capital, running each strategy at 1x quantity.

My main focus is long-term survival, low drawdown, and non-correlated strategy selection rather than only high returns.

What factors should we check before selecting the combo?

For example:

  1. Drawdown and recovery time

  2. Correlation between strategies

  3. Live performance vs backtest

  4. Risk per strategy

  5. Number of trades and execution quality

  6. Market condition suitability

  7. Whether all strategies fail together or not

For ₹5 lakh capital, if each strategy is run at 1x, how many strategies should ideally be included in the combo? Also, what would be a safe way to allocate risk across them?

Experienced members, please share your practical views on how to build the best and safest combo for long-term algo trading.

3

Hello Gita, welcome to our community!

We have specifically made a post on your query, please check this out: Which algos should you deploy? A cheat sheet — and the philosophy behind it - #3 by Nikhil_Bhandari

If things are still unclear, once you get our annual plan, you will get a dedicated wealth manager that will personally take care of all your algo portfolio related queries.

Happy Algo Trading!

4

I will share my plan damper on 2 lkah (not 1x bcoz charges eat almost all profits I validated live) curveture 1 lakh correlation is .14 or so , keep 2 lakh in buffer as this is start u need smooth curve with less stress as soon as profit crosses 60k which covers max dd for both algos add another un corealted cs on 1 lkah and keep scaling thisxway post 10 lakh u can add OB for 50k or 1 lakh

2 Likes
5

Thanks for your support :folded_hands:

2 Likes