Robo trading India

Robo trading is taking momentum in India and the role humans play in trading is diminishing rapidly. However only 0.5% traders trading using API based Algo trading, the future is very very bright for Indian market to grow in Algorithmic trading. 

Before we talk about Robo Trading or Algorithm based trading, let us understand what are different types trading techniques we follow.

Trading can be of Four different types. If we start from the shortest time frame to largest timeframe then first comes Scalping. Next comes Intraday Trading followed by swing trading and finally Positional Trading.

Now let us try to understand each of these trading types.

Scalping:

Scalping trading pattern lasts very short time duration. Where Scalpers takes position for few minutes, even in some cases for few seconds.

Intraday Trading:

Second type of trading can be called as Day trading. Where trade duration lasts from the market open time till market closing time. As this is Intraday trade none of intraday trade shall go into holding position or overnight position. Any trade gets executed on a trading day shall square-off the same day.

Swing Trading:

Thirdly comes Swing trading. Where trade shall continue in holding for multiple days, or may be weeks or months but generally not more than a year.

Positional Trading:

And Finally where the trading where any trade shall continue for months, or even years. These types of trading is called positional trading.

Let us now discuss which type of trading is fit for Algo or Robo trading category.

Any trading where the time span for trade is not too less and not too high is ideal for Robo trading or Algo trading. Hence to my experience I can say ideally Intraday trading and Swing trading is ideal fit for Robo or Algo trading.

Let us know try to understand what is Algo trading or Robo Trading. 

 

What is Robo Trading: 

Robo Trading, or Trading by a Robot, is nothing but a computer program. Where an algo bot generates buy and sell signals and the execution engine executed the signals. 

 

Machine learning:

Using Machine learning, AI platforms can identify complex trading patterns on a massive scale across multiple markets in real time. 

Robo Trading using AI

 

Quant Based technique: 

Quantitative trading (also called quant trading) are designed using computer algorithms and programs based on simple or complex mathematical models to identify and capitalize on available trading opportunities. Quant based trading is called Algo trading or Robo trading

 

 

Trading during early days:

During early days, market used to be floor based. Where traders used to interact and agree on a security, price and quantity and settle the trade on paper.

With the evolution of technology market became digital with global participation. Hence there is a paradigm shift of trading approach all together creating a new path for tech savvy traders or Next generation traders . 

 

How a Non full time trader can trade hassle free:

Many working professionals  can not spend time during the market hours due to their time packed schedule. Most of these working professionals are out of the market due to their unavailability during market hours. 

If they get an opportunity to Trade using robo trading software, then more and more such traders can participate in the Stock market. 

Robo trading shall control human emotions completely and trade based on pre defined condition developed in the computer program. This  helps a trader book more profit and lower losses. 

Example:

Let me explain, what generally happens, we as a trader try to take a position 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. 

Manual Trading:

This is exactly what happens in manual trading. By doing so we become an investor/swing trader from an intraday trader and in most of the times end up adjusting our losses. 

 

Algorithmic Trading:

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.

Benefits of Robo Trading

Myths of Robo Trading

 

Algo Trading Products:

When we talk about Robo trading software, we talk about a software which shall have end to end automated trading setup. We have many Algo trading bots which is running in the market for more than a year for many retail traders. 

Please comment below if you have any questions or suggestions.

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. 

I would like to conclude saying that the time has come where the future trading is shifting towards Robo trading in India. If we opt for Robo trading, then at least we can eliminate the emotion and tension we go through every day during the trading sessions and enjoy trading.   

Robo Trading FAQ

Robo trading is to trade for short duration based on Algo / robo trading bots. Whereas Robo advisor is a advisory service for positional trading, which is for longer duration

Robo trading is based on a software or algorithm, which has pre defined logic that is tested for all market conditions. Hence probability of winning is much higher for a Robo trader.

No, we I do not recommend to exit at wish during execution phase. Enabling this feature is to enable manual psychology to play in between a trading system. Which eventually degrade the Bots performance. 

Yes you can. We have fully automated algo trading Bots, where starting from signal generation till execution they are  automated. You can trade using your existing account or can open a new account too.

Currently we are integrated with Aliceblue, IIFL and Mastertrust. In coming days we shall integrate with lot many brokers who offers rest API for Algo trading.

We are from DTMAlgo, offerring minimum charge of Rs.500 monthly for Algo trading. So you can start as low as @Rs.500 monthly charge, no additional charge is involved. 

No. Once you register with DTMAlgo marketplace, you can get all the signals and trade details running in your account in your my profile page. No need to login to your trading account for the trade details. 

Yes, you can choose FREE pricing plan from our marketplace to avail trial. 

The winning probability are different for different Bots. We have mostly trend following strategies hence the winning probability is not more than 50%. You can check the winning % of different bots in our  marketplace 

Surajit Chatterjee

Surajit Chatterjee

DTMAlgo, is a Fintech startup aim to offer fully automated institutional standard trading products for Retail Traders at affordable price.

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