Also called as black-box trading, algorithmic trading follows a specified set of instructions from a computer program for trading. It generates profits so frequently and rapidly that a human trader cannot perform. The rules are defined as per the quantity, timing, price, or mathematical model. Algorithmic trading brings liquidity to the markets and generates profitability for the trader, and it adds a systematic approach to trading without human emotions.
Simply speaking, algorithmic trading completely removes manual intervention. It will conduct point-to-point automation after coding the rules of logic in the algorithm. It tracks the market, places the order when it finds any opportunity, and monitors risk and stop loss. It also squares off the trade when needed. Algorithms can help trade on F&O, equity, FOREX, cryptocurrencies like BITFINEX and BITMEX, and commodities in Indian exchanges like BSE, NSE, NCDEX, MCX etc.
Algo trading enters and leaves trades using chart analysis and codes as per the specified parameters like volatility levels or price movements. Trading algorithms can place orders for buying or selling for the user once they identify the favourable market conditions as per the given criteria.
Speed and accuracy are two of the main advantages of algo trading over manual trading. Algorithms are pre-defined and executed well. It conducts trade in a part of a second. This speed is something a human trader cannot achieve. It executes and scans on several parameters that is quite impossible for a human. So, one can have more options for better prices.
On the other side, there is no risk of errors by choosing the wrong trade. If you go for the manual option, there are chances you might trade for the wrong amount or invest in the wrong currency pair. To ensure the right order, an algorithm has been cross-checked already. Algo trading also removes human sentiments which lead to illogical decisions. Greed and fear are the most common culprits which manipulate the human mind.
Algo trading has a lot of benefits over the traditional approach. But there are some cons too. Here are a few of them –
Yes, we do provide a free API key.
Yes, the trader has to monitor the trading session to avoid any technical issues like power outage and connectivity. The strategies need constant monitoring for proper execution. You should also ensure that there are no wrong, duplicate, or missing orders in algorithms
All you need is 4GB RAM and stable internet connectivity.
You can rest assured with us as you can have 80% of signal accuracy.
In 2008, the Securities and Exchange Board of India (SEBI) passed a regulation for institutional investors for the legality of automated trading in India. So, a short answer is “Yes”, it is legal in India. In fact, over 43% of NSE trades done today are algorithmic ones.
No, you can make only profit expectations as per the algorithm set. We do not guarantee any kind of financial performance.
Yes, you can legally have more than one Demat accounts just like you can open several trading accounts. But the only caveat is that you can’t have them with the same DP or broker. If you open a Demat account with us, you can get one month of subscription for our Algo software for free. Click this link for more info - https://alicebluepartner.com/open-myaccount/?M=MM201
No, you have to open another account for several ownership patterns. For example, if you have a share certificate in your name and your spouse, and another in your name, you have to open two different DEMAT accounts.
It is required to protect the consumer’s interest. Your dividend or interest warrant will have your bank account number mentioned. This way, no one can encash these warrants other than you.
Yes, you can assign anyone to operate your account on your behalf. You need to execute a power of attorney and furnish the same to the DP.
Yes, you can change the account details, but you have to keep the DP posted because all the financial benefits will be paid to your bank account according to the given points.
Only those people who have beneficiary accounts either combined or individuals can make nominations. Any trust, society, corporate body, Karta of HUDs, partnership firm, power of attorney holder, or any non-individual entity is not eligible for nomination.
No, you can have only one nominee for each depository account.
No, minors don’t have the right to nominate either with a guardian or individually.
Yes, an NRI is eligible to nominate without having anyone else. But they cannot assign a power of attorney to anyone to nominate.
Yes, you can freeze your account for both credits and debits, or any debits. No debits will be allowed from the account that you have frozen for debits until you unfreeze it.