Algo-trading the buzz word of 2020, which excites a few and gives chills too to few folks. Algorithm based trading is nothing new but trading systematically done with rule based logics used to execute trades using a bot (software). Large Financial houses used various software's to punch their orders. Almost 33% of transactions in 2018 happened via these software's, India allowed algo’s in late 2008 and today in 2020 retail investors are going frenzy over opening algo trading accounts.
Here is step by step guide and complete FAQ to algo trading:
Is it legal for retail investors? Is it risky? What are pricing plan? do I need to know coding? are these questions burning in your mind right-now? just stay tuned.
Algo’s are Legal, as far as risk is concerned you can follow strategies created by professionals back-test them on previous data and paper trade for few weeks before deploying while getting 100% familiar to it. You will not need any coding skills to design a strategy but yes will need to understand the program and its functioning on which you are creating strategy.
Pricing is different on different platforms and after reviewing 5 of them I am fully convinced that most convenient one is TradeTron. It has multiple plans as per your appetite you can select.
My Story with Algo trading:
I was tired of juggling between daily tasks/work and markets wanted something to automate trading and was looking for a tailor made solution to make money while protecting the capital. At that moment I came across algo-trading tried various combinations of brokers and algo platforms. settled with Alice blue+Tradetron.
In my first 7 sessions (days) of trading I made Rs. 10,241 with a small investment of Rs. 45000.
Reason for using Alice blue as broker is it’s dirt cheap no integration fees no hidden charges. Simple registration fees Rs. 500 and Rs. 20 per trade with 10x exposure margin.
Follow me and stay tuned for the entire series on how to top charts in algo-trading by creating wining strategies.
Link to the next medium story: 100% Returns in 3 Months!, Algo-Strategies are Boon for retail investors or Ponzi schemes?
Disclaimer: Read terms and condition of Broker Alice blue or Algo Platform Tradetron before signing up, author of this article is not responsible for any of loss or for any information shared here, this article is create for educational purpose only. Trading cannot be always profitable hence we do not give any trading advice or talk about any strategy in this article.