5paisa - Algo Trading

Algo Trading is a form of Automated trading that uses computer programs to analyse market data based on pre-defined parameters. It places trades on the terminal and submits to exchange thereby reducing manual invention.

Who is it for?

  • Experienced and professional traders who fully understand the risk and rewards involved in use of Algo trading.
  • People who already have buy and sell strategies and want to automate them.
  • Technical analysts wanting to automate their trading.
  • Jobbers wanting auto execution.
  • Wealth managers wanting to trade on behalf of clients

Algo Features at 5paisa

  • Cutting edge technology platform and infrastructure
  • Interface with charting tools like AmiBroker etc.
  • APIs for .NET, Java, C++ Python
  • Strategy coding assistance
  • Development of customised strategies
  • Plug-and-play popular strategies (pre-loaded and pre-approved)
  • Stock Exchange approval assistance
  • Live Paper Trading platform provided for testing strategy.

Benefits of Algo trading:

  • Reduces the need for manual intervention.
  • Automates decisions and execution, reducing time to act and avoiding human emotions from coming into play while trading.
  • Helps scale up strategies to a wider range of stocks, than manually feasible .

Different ways of performing Algo trade

Programmed Algos: In this case a strategy that is used by you for trading manually can be coded in any computer language that sends the same triggers to the Order placing application that you would otherwise place manually.

Charting/Macros based triggers: If you are using a charting software like AmiBroker, or if you have created any triggers in MS Excel with the use of Macros etc. These triggers can be sent to the application using plugins, and the application places the trades

Process:

Idea Conception

Discuss your ideas and trading strategy

Determine complexity of strategy and coding & API Integration

Determine complexity of strategy and coding & API Integration

Fill the required form & undertaking and make payment

Strategy Coding

- Get you strategy coded by our experts

OR

- Get API documents to code your strategy yourself

Paper Trading

- Test your Strategy in our Live-like simulated trading environment

Exchange Approval

- Get your strategy approved by the exchange with our assistance

Our Pre Approved Algos

We have introduced certain popular pre-loaded Algos that are you are advised to use.

Here are few of our pre-loaded Algos

  • Amibroker linked execution strategy: AmiBroker linked execution algo for traders using technical indicators; werein buy/sell signals are plotted on the chart based on technical indicators. These triggers are then passed for execution. Execution strategy through which you can intelligently execute entry and also define exit beforehand by placing target orders, stop loss orders, trail stop loss etc.
  • Jobbing Strategy: This strategy is for jobbers who trade based on the breakout of high & low; allows user to trade in a huge basket of symbols which is manually impossible. Strategy will intelligently select quantity for each symbol, place stop loss order and calculate profit targets for exit
  • Pivot strategy: Execution strategy developed for traders who use pivot calculations to trade. It usually consists of support levels & resistance levels. The strategy will receive input file in csv, which will contain pivot values giving entry and exit triggers for trading during the day
  • Buy/Sell Call Execution strategy: Execution strategy for traders who subscribe to signal providers for buy/sell decisions. Through this strategy you will simply provide the trigger levels in a csv or txt file & the strategy will accordingly execute the signals automatically.
  • Bracket Orders: This intraday strategy helps you to simultaneously define profit targets & stop loss levels; you can define these levels in both absolute & percentage terms. This strategy helps you to intelligently execute entry & exit points.
  • Bulk Buying/Selling strategy: Designed for manual traders to achieve better average price from a defined price range rather than the limit price as defined by you; this strategy tracks market quotes and changes the bid/ask price and places orders in slices as defined by you.
  • Pair/Spread Trading strategy: An intraday trading strategy which helps you to monitor spread of 2 correlated securities. Trader can take entry & exit based on spread difference in both absolute & ratio terms with a view that spread between the two would eventually converge

Disclaimer: While utmost care has been exercised while preparing this document, 5paisa Capital Ltd (“5paisa”) or any of its directors or employees do not guarantee the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully responsible / liable for any decision taken on the basis of this presentation. Investments in Securities are subject to market and other risks and there is no assurance or guarantee of any of the strategies. All details provided in this brochure and any commercials thereof may be subject to change from time to time based on the discretion of 5paisa.

 

 

 

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