Algo Trading Strategies

 The biggest difference between investing in stocks and trading stocks is that while investing is a long term process where you buy the shares of the company and wait for that company to grow, in intraday trading, you buy and sell stocks within the same day to generate profits. Compared to mutual funds, trading with the help of intraday trading strategies is much less risky, which is the reason why it has been gaining such momentum in the past few years. According to statistics, nearly 40% of all trades that happen on the National Stock Exchange (NSE) are a result of automated trading . The reason why this phenomenon has grown so quickly within such a short span of time is that automated trading removes human error and bias from the picture – which are two of the biggest factors responsible for the losses incurred in the trading market. Unlike humans, computers do not get tired, do not miss even the minutest of details and do not succumb to emotional impulses like fear and gre...

 Intraday trading is all about buying stocks and selling them on the same day, and if you want to book profits, you need to make sure that you have good intraday trading strategies. It doesn’t matter whether you’re doing manual trading or automated trading; having good intraday trading strategies is a must. Let’s take a look at some of the best strategies that have proven themselves time and again. Opening Range Breakout (ORB) This is a strategy that is utilized by both amateurs and professional, experienced traders. If you combine this strategy with the proper use of market indicators, accurate assessment of market sentiment and unyielding rules, you’ll be able to gain maximum profit out of this strategy. Opening Range Breakout (ORB) has numerous variations and it depends upon the traders, how they want to utilize their strategy. Mapping Resistance and Support Opening range refers to the fluctuation of the stock price that happens for every stock for the starting 30 minute...

  While in the western markets, automated trading has captured more than 80% of the stock market, it is slowly growing in India as well. Ever since algo trading strategies were legalized in India by SEBI in 2008, automated trading has started making its mark. Today, it accounts for nearly 40% of all trades that occur on the National Stock Exchange (NSE). While the retail investors can now indulge in automated trading, they have to go through a rigorous process in order to get their intraday trading strategies automated as the as exchanges in India do not allow retail individuals to automate strategies. Following are the steps one must take in order to use algo trading strategies as a retail investor. ·         You are required to register as an Authorized Person on the exchanges. To fulfill the process, you are required to pay a one-time fee of Rs 3000 per segment per exchange. ·         Once you have b...

  If you are one of those people who want to make money from money and rather quickly, then intrading trading strategies can help you achieve your dream. But automated trading isn't a piece of cake. Given how high the stakes are, you need to keep in mind some tips that can help you get success on the stock exchange. Volume of trading As an intraday trader, you buy and sell stocks on the same day, without taking deliveries. Hence, one of the most influential factors in determining your success as a trader are the trading volumes. Since people are trying to buy low and sell high, most of the traders are solely focused on stock prices. But trade volumes play just as important a role in increasing your profit. You can sell not very high, but if you sell enough, you'd be able to reap that profit. Oftentimes, it is easier to sell in large volume than at high stock price. Don't be impulsive This is why you should always set your entry and exit prices. People are often swi...

  After making a lot of money for investors in the Western countries, automated trading came to India on April 3rd 2008, when the Securities & Exchange Board of India (SEBI), introduced algorithmic trading by allowing Direct Market Access facility to institutional clients. To put in simple terms, Digital Market Access (or DMA as it is usually referred to as) allows the brokers to provide their infrastructure to clients without them having to interrupt them in any way. At the time when algo trading strategies were introduced in the country, they were only allowed for institutional clients and not retail traders. According to a report by Economic Times, the automated trading business is pegged to grow from $11.1 billion in 2019 to $18.8 billion in 2024 at a robust CAGR of 11.1%. The advent of automated trading in India that makes use of intraday trading strategies has marked the beginning of an era of growth and expansion for a lot of businesses. This is why there is a lot of...

 Intraday trading strategies are used by investors to conduct trades on a day to day basis. As a consequence, itraday traders are prone to a higher volatility as compared to the long-term investors. But if you have the correct knowledge, you can reap serious profits whilst doing automated trading. . If you are starting off into this new domain of trading, it's natural that you would want to learn tricks of the trade. However, you should keep in mind that merely tricks and tips wouldn't do the job as you need good intraday trading strategies as well to maek the most of your experience at the intraday trading market. Let's take a look at some of the guidelines that you should follow in order to maximimze your profits and minimize your losses. Go for liquid stocks You must be well aware of the fact that intraday trading encapsulates the idea of buying and selling stocks on the same day. But you must also keep in mind that for the exchange to execute these orders, there ...

Although it may seem pretty small in the world market as of now, but the Indian stock market is on am exponential growth curve. With the emergence of startups and other small and large businesses in the country, there has been a growth in the number of investors. In the present scenario, even the people belonging to the middle class are getting interested in the investment business, and this growth has been further augmented by the introduction of automated trading in the Indian stock markets. The growth has been so quick, in fact, that within a short span of time, 40% of all trades that happen on the National Stock Exchange (NSE) are being done with the help of automated trading by employing algo trading strategies. But before we delve deep into studying the Indian stock market, let us first understand what a stock is. A stock is a kind of security that represents an ownership share in the company. When the companies are looking forward to accomplishing feats that require substantia...