New to Algo Trading

T

trend.friend

Banned
#1
#1
Hello everyone
I have been trading in the markets for several years now. I am a manual trader and I rely on my own judgment on enter and exit based on price action of the stocks that I have been tracking. Recently I have been introduced to algo trading but I don't know where and how to begin. Could you people help me in this regard? Just a few words of wisdom as to where to begin from. What are the tools that I must adopt. I'm not a techie so any advise for a person from a non tech background?
 
manishchan

manishchan

Well-Known Member
#2
#2
trend.friend said:
Hello everyone
I have been trading in the markets for several years now. I am a manual trader and I rely on my own judgment on enter and exit based on price action of the stocks that I have been tracking. Recently I have been introduced to algo trading but I don't know where and how to begin. Could you people help me in this regard? Just a few words of wisdom as to where to begin from. What are the tools that I must adopt. I'm not a techie so any advise for a person from a non tech background?
Click to expand...
If you rely on judgement or price action for trading then algo can't be done. Algo trading is nothing but automating your strategy and letting your computer enter/exit trades as you define. i.e - Lets say you want to buy when 10 SMA crosses 20 SMA and RSI is 40 and want to exit when RSI is 70. Since this is a defined value based entry/exit.. this can be coded and put into the terminal for algo trading. So whenver the abovementioned values are reached.. your system will automatically buy and sell.....

so basically.. you must have very well backtested mechanics in order to code it and apply for automated trading.

Here is the link for algo trading in Zerodha.

http://zerodha.com/z-connect/charting-coding-and-backtesting/user-manuals/basics-manual
 
T

trend.friend

Banned
#3
#3
manishchan said:
If you rely on judgement or price action for trading then algo can't be done. Algo trading is nothing but automating your strategy and letting your computer enter/exit trades as you define. i.e - Lets say you want to buy when 10 SMA crosses 20 SMA and RSI is 40 and want to exit when RSI is 70. Since this is a defined value based entry/exit.. this can be coded and put into the terminal for algo trading. So whenver the abovementioned values are reached.. your system will automatically buy and sell.....

so basically.. you must have very well backtested mechanics in order to code it and apply for automated trading.

Here is the link for algo trading in Zerodha.

http://zerodha.com/z-connect/charting-coding-and-backtesting/user-manuals/basics-manual
Click to expand...
Thank you for your post. I would like to know whether Amibroker is used for the same reason? When i searched online, I found ami to be rated as the best charting platform. But another friend of mine kept reiterating that ami is used mainly for 'backtesting'. Is ami useful for people like me who want to learn about algo trading?
 
T

trend.friend

Banned
#4
#4
manishchan said:
If you rely on judgement or price action for trading then algo can't be done. Algo trading is nothing but automating your strategy and letting your computer enter/exit trades as you define. i.e - Lets say you want to buy when 10 SMA crosses 20 SMA and RSI is 40 and want to exit when RSI is 70. Since this is a defined value based entry/exit.. this can be coded and put into the terminal for algo trading. So whenver the abovementioned values are reached.. your system will automatically buy and sell.....

so basically.. you must have very well backtested mechanics in order to code it and apply for automated trading.

Here is the link for algo trading in Zerodha.

http://zerodha.com/z-connect/charting-coding-and-backtesting/user-manuals/basics-manual
Click to expand...
Thank you for the post. I just went through Mr. Kamath's post. It indeed was helpful to understand how algo trading works in layman's terms.
 
T

trend.friend

Banned
#5
#5
Can anybody share a link with me with the most commonly used algo trading strategies in India? Since I am a beginner, starting to write strategies on my own would be hard without knowing what kind of strategies are the most widely used.
 
T

trend.friend

Banned
#7
#7
@ Mr. Manishchan, (Since my reply with quote post is not displayed),

Thank you for your post. I just went through Mr. Kamath's post. It was helpful to understand algo trading in layman's terms. I wanted to ask you whether amibroker is useful for algo traders? As far as i know, ami is a charting software. But my friend vigorously defends ami as a must for algo traders. Could you please clarify? Is it useful for someone like me when I am trying to learn algo trading? Is it a must for hardcore algo traders?
 
L

learn2tr

New Member
#8
#8
Sir, please help me out that in the Amibroker software, whether the provision of data and charting both available and how to get the support of AFL code if I have my own AFL strategy.
 
R

rajuchd9

New Member
#9
#9
learn2tr said:
Sir, please help me out that in the Amibroker software, whether the provision of data and charting both available and how to get the support of AFL code if I have my own AFL strategy.
Click to expand...
Yes, you have to get live datafeed for it and studies live charting on it. As mastertrust is providing all combine setup ( AMI Datafeed + Execution through charting ) and also had inhouse AFL writer who take care of its live clients AFL's.....
Please visit site for Demo:- https://youtu.be/CtSLCcsP9bk
 
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