Before we talk about Robo Trading software, first let us know what is Robo trading, its benefit and drawbacks.
What is Robo Trading: Robo Trading, or Trading by a Robot, is nothing but a computer program which not only generates buy and sell signals (based on the built in Algorithm), but also places order for execution using another or same software based on those buy and sell signals. So a robo trading software is helping a trader to automate his/her entire trading end to end. Now the question may arise if this is completely end to end automated then what a trader will do ? Well answer to this question is, a trader now can get more time in analysis and create better strategy, and enjoy his quality of living. A trader is the spine of liquidity in the market hence automating trading means more and more participants in the trading field.
Benefits of Robo Trading: There are many benefits of Robo Trading. Think about working professionals, many of working professionals can not spend time during the market hours due to their time packed schedule. Currently they are out of the market. If they get an opportunity to Trade using robo trading software, which tool shall trade on their behalf automatically based on pre defined computer based buy sell signals. Then more and more such traders can participate in the Stock market increasing more liquidity in the market. This is the major benefit for our economy.
Robo trading shall control human emotions completely and trade based on pre defined condition developed in the computer program. This not only helps a trader book more profit and low loss but also releases his/her other wise blocked funds if you think it other way around. Let me explain, what generally happens, we as a trader try to take a position for intraday trade with an anticipation that XYZ stock will move up. If the stock just reverses its direction then we wait for the stock to go up and keep waiting, and eventually convert the trade into a positional one and block our fund till the stock price comes up. This is exactly what happens in manual trading. By doing so we become an investor from a trader and in most of the times end up adjusting our losses. Algorithm based Robo trade shall release us from this unsystematic trading and help us to trade systematically with pre defined SL and Target each and every time we trade, that increases our probability of winning significantly.
You can enjoy your leisure time with your friends and family without even being bother about what is happening with your trading positions, as Robo is doing his job by closing existing positions and creating new positions on your behalf. A great potential for our personal life’s quality time utilization.
Drawback: There are drawback as well, as the trade is done by a robo or a computer program, which has its dependency on computer software and hardware, network bandwidth and system availability. In case any of the above resources goes down, the Robo will stop working or malfunction.
Conclusion: Does that mean there is a major challenge in infrastructure for Robo trading setup, the answer is no. With an advancement of technology, now a days we can get Cloud space which is 24×7 up with 99.9999% of availability commitment and every Broker is now on the cloud making it possible to almost 99.9999% no infrastructure issue at all. Moreover today all trades happen over online system only, hence the risk of system going down is almost negligible. So I would like to conclude saying that the time has come where the future is shifting towards Robo trading in India. If we opt for Robo trading, then atleast we can eliminate the tension we go through every day during the trading sessions and relax our own way.
Robo Trading Products: Finally I would like to mention, that we have Robo trading products for retail traders on BANKNIFTY for now. All our Algo Strategies details are available in our website with backtested performance in last 4 years. We believe in continuous improvement, and our team is continuously working on our existing strategies to improve profitability whichever way possible to benefit retail traders. In coming days we shall also publish our Crude-Oil Robo and host of other Robos for the busy working professionals.
Please comment below if you have any questions or suggestions.