Automated trading in NSE or BSE?

Discussion in 'Technical Analysis' started by nikhiljaco, Jul 6, 2010.

  1. nikhiljaco

    nikhiljaco New Member

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    Hi

    I was checking out the possibility of automated trading in NSE or BSE. I went through the posts and most of them says its illegal in India but most of the post are around 2 yrs old.

    Can anyone tell me abt the current situation in India. Is it illegal for softwares to place trades in the market without any human intervention?

    I am planning to write codes to place orders through web interfaces of brokers.

    Thanks in Advance

    Nikhil
     
  2. andrewjuliandavid

    andrewjuliandavid New Member

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    NSE has started automated trading software few months back

    you can check nseit.biz website they offer a product by name algosystems

    cost is around 1 lakh per month

    any details if you need more mail me andrewjuliandavid@gmail.com
     
  3. nikhiljaco

    nikhiljaco New Member

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    Hi andew

    thanks for the reply. I do not need such an high cost system.

    What i want to know is whether i can place trades to my brokers web interface
    through scripts or programs based on buy/sell signals...

    Many prev post i read tells that its illegal but can be done as brokers may not trace it. But what want to know is whether it is illegal now?

    Thanks and Regards
    Nikhil Jacob
     
  4. andrewjuliandavid

    andrewjuliandavid New Member

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    It is not Illegal now ...

    As i said earlier .. it is now allowed by NSE

    regarding your own scripts integration .. you can use API integration ..which is allowed by only one ( INTERACTIVE BROKERS)

    any thing more . .. ask me i can help you
     
  5. nikhiljaco

    nikhiljaco New Member

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    Thank you very much
     
  6. sanjay_arora

    sanjay_arora Active Member

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    Nikhil

    Program Trading is not allowed unless by permission by the Stock Exchange. There too there has to a complete disclosure of the algo being used....as if people would bring in highly confidential algos with such rule in place...consequently...20-30 people are doing this...mostly arbitration. Rules are in place to check things like multiple orders in micro-seconds and max 100 cancels for each order & so on.

    IB TWS has an api for its trading software. They are not pushing it in India, but its there.

    What you are saying is technically possible. Technically speaking...its illegal as it has not been permitted by the stock exchange rules....on the other hand its been allowed by the law of the land...subject to stock exchange permissions.

    That said, there is no system in place to check such a thing, as technically you will be controlling the browser itself and there is no way to find this automation....especially if it remains (and due to inherent nature of HTML) slow.....you are not going to submit thousands of orders per second...are you ;-)

    On the other hand, the DMA connects of brokers, do have a monitoring system in place at the exchange, to check for signs (high speed) of unauthorized automated algos!!

    Go ahead..and do post results....use another id, if u must ;-)

    Sanjay.
     

  7. nikhiljaco

    nikhiljaco New Member

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    Hi Sanjay

    Thanks for the reply.

    Then what is algostudio ( I think its the name) from NSE which allow algo trading ?. If the NSE is supporting it, then can't we do it through brokers ?

    I am too comfused with the post some say we can and others we can't
     
  8. rajivlodha

    rajivlodha New Member

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    Automated Trading is allowed in BSE, this is what i have found -

    In response to several queries from members regarding the procedural aspects of Automated Trading at the Exchange, we are pleased to inform the members that in order to commence Automated Trading they need to inform the Exchange certain details that are mentioned in the enclosed format (Annexure

    • Upon doing so, a member may commence Automated Trading in his office by ensuring that there is a unique location ID (details in Annexure 1)
    • To distinguish the Automated Trades from the normal trades.

    However, Members are required to ensure the following:

    • Automated Trading would only be permitted in securities belonging to Group A and Group B.
      [*]
    • However, Exchange reserves the right to amend the list of securities allowed for Automated Trading from time to time.

    For more information, please read this post in bseindia.com -

    http://www.bseindia.com/cirbrief/new_notice_detail.asp?noticeid=%7BA3B3E038-9A0C-42B0-A44C-DBB886C5A038%7D&dt=4/24/2009&icount=0&totcount=0&flag=1

    I am also digging websites of other exchange, if BSE is allowing automated trading, NSE and others must have followed the same.
     
  9. n_bagadia

    n_bagadia New Member

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    hi andrew ........
    i was going through your posts...... i have recently contacted nse.it for algo ...... but they have a semi automated... and the automated one is only for arbitrage ...... if i need a automated software fro technical based trading ... can u suggest me one ??///
     
  10. aryabhatta

    aryabhatta Active Member

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    automated trading is possible at no extra cost and been done but only on nifty and sensex since last few yrs, only thing its not exchange traded but interbank traded. Those broker like GCI who offer MT4 and offer nifty/sensex have this facility. You just have to know MQL language and write an EA (expert advisor) and MT4 will trade fully automatically including position sizing/trailing stop/buy /sell/short/cover signals.

    since its not exchange traded i dont recommend this unless for some reason you absolutely must trade these indexes fully automatically on a retail level.
     
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