Dear Traders & Subscribers,
Today I want to openly share an important live trading incident that happened in my account, because transparency is a core value of how I run and share my strategies.
This is not a complaint post, not a justification, and not an excuse.
This is a reality check of algo trading through demat accounts in live market conditions.
🔍 What Exactly Happened?
- Same broker: Dhan
- Same underlying: Bajaj Holdings
- Same strike: 11600 PE
- Same expiry
- Same market session
- Time difference: barely 4 minutes
But…
- ✅ Order placed via Tradetron → Executed successfully
- ❌ Order placed via Algotest → Rejected
The rejection message received was:
“Order rejected as this option strike has open interest below defined limits.”
This rejection eventually resulted in a missed opportunity of ~₹40,000.
🧠 The Confusion Everyone Faces
After this incident, I heard multiple explanations from different sides:
- Some say liquidity issue
- Some say broker RMS (Risk Management System)
- Some say exchange-level OI limits
- Some say algo platform handling
- Some say timing & order routing
👉 The truth is:
Retail algo traders don’t always get one single clear answer immediately.
And that itself is part of live trading reality.
⚠️ Important Point to Understand
This was NOT:
- A strategy failure
- A logic error
- A wrong signal
- A manual execution mistake
This was a system-level rejection, something that can happen when:
- OI thresholds dynamically change
- RMS checks vary by microseconds
- Exchange risk filters activate suddenly
- Platforms route orders differently even with the same broker
Algo trading is not a backtest environment.
Live markets are messy, fast, and imperfect.
🧩 Why One Platform Worked and the Other Didn’t?
This is the most common question.
Even when:
- Broker is same
- Instrument is same
- Strike is same
👉 Order routing, validation timing, RMS checks, and exchange responses can differ between platforms.
A few minutes, few seconds, or even milliseconds can make a difference.
This is not widely discussed on social media—but it’s the truth.
📣 My Stand as of Now
- I have raised this issue with Algotest
- Their team is investigating the root cause
- I am not jumping to conclusions
- I am not changing broker or platform in panic
- I am continuing trading as usual
Why?
Because professional trading is about handling uncertainty, not running away from it.
💡 What I Want Subscribers to Take Away
- Algo trading is powerful, but not perfect
- Execution risks exist, even with the best setup
- Losses can come from systems, not strategies
- Risk management must include execution risk
- Emotional decisions after one incident are dangerous
Today it cost me money.
Tomorrow it might save me money.
This is the game.
🤝 Transparency Above Everything
I believe trust is built when realities are shared, not just profits.
You are not following a fantasy system.
You are following real strategies traded in real accounts with real challenges.
I will update you once I get clarity from Algotest.
Until then, we trade calmly, logically, and professionally.
Final Thought
Markets don’t reward perfection.
They reward those who survive imperfections.
Thank you for standing with me in both profits and realities.
— Madhu Babu
Algo Trader | Strategy Developer | Real Market Participant
