Simulate how different trade frequencies affect your net profit after charges. Find the optimal number of trades per day where brokerage drag does not eat your profits.
Simulate how different trade frequencies affect your net profit after charges. Find the optimal number of trades per day where brokerage drag does not eat your profits.
Charges per round-trip trade (brokerage + STT + GST + exchange). ₹100-200 is typical.
DETAILS
This section explains what the calculator does, what goes into the result, and how to interpret the output so you can apply it confidently.
This calculator turns a few key inputs into a clear output you can act on — a number that traders and investors commonly use for planning and decision-making.
Use it to compare scenarios quickly and to understand the trade-offs behind the final result.
Treat the output as a planning number. Small changes in inputs (time, rate, price, quantity, risk, or cashflows) can change the outcome meaningfully — so keep assumptions realistic.
If the tool returns multiple outputs, focus on the ones that drive decisions (e.g., net result, breakeven, or risk-adjusted value), not just the biggest number.
Win rate 50%, Avg win ₹2,000, Avg loss ₹1,000, Charges ₹150/trade, 5 trades/day
Graphical view
Win rate 55%, Avg win ₹1,500, Avg loss ₹1,200, Charges ₹150/trade, 10 trades/day
Graphical view
More trades can increase gross, but net can fall once charges scale faster than edge.
HOW IT WORKS
Input your win rate, average win amount, average loss amount, and charges per round-trip trade.
The simulator runs your strategy at 1 to 20 trades per day and shows the annual net profit at each frequency level.
Identify the frequency where net profit is maximised. Beyond this point, brokerage drag overtakes the additional gross profit.
FAQ
No. Each additional trade adds brokerage, STT, GST, and exchange charges. At some point, the marginal gross profit from one more trade is less than the charges that trade incurs — making each extra trade net negative. This is the "optimal frequency" beyond which more trades actually hurt returns.
Charge drag is the percentage of gross profits consumed by transaction costs. At 10 trades/day (2,500 trades/year) with ₹150 charges/trade, you pay ₹3.75 lakh in charges annually. If gross profits are ₹5 lakh, charge drag is 75% — leaving only 25% as net profit.
Three ways: (1) Trade fewer, higher quality setups — quality over quantity. (2) Use a flat-fee broker (cap of ₹20/order) for F&O. (3) For equity, use delivery over intraday where possible to avoid intraday brokerage and reduce STT. The best traders are selective, not hyperactive.
Related but different. Overtrading is taking low-quality setups impulsively. High trade frequency may or may not be overtrading — a scalper with a valid high-frequency strategy may have 20+ trades/day legitimately. The test is: does each trade meet your criteria AND does total net P&L remain positive after charges?
Know your real trade frequency and P&L
TradeLyser shows your actual trade frequency, charge drag, and net P&L so you can optimise your trading without guessing.