Starting with algo trading. Need some advice.

#11
I don't. I want to give it a try and see where it goes. I am sure I would have learned a lot regardless of the outcome :)
Before you venture out in this..i suggest you do your research on HFTs.

Besides what you are trying to achieve without becoming a dealer is not possible and even if you did you will still be executing a strategy and watch every move it makes.

So i m confused are you planning to compete with HFTs or simple execute a semi automatic algo in which case i assure you at best you will break even.
 
#12
Before you venture out in this..i suggest you do your research on HFTs.

Besides what you are trying to achieve without becoming a dealer is not possible and even if you did you will still be executing a strategy and watch every move it makes.

So i m confused are you planning to compete with HFTs or simple execute a semi automatic algo in which case i assure you at best you will break even.
I am not intending to do HFT - just quant based investing. Sorry, should have been clear about this in my last post.

So you are saying that execution of semi-automated strategy one would only break even? Am I understanding you correctly?

Also in one of your earlier posts, you mentioned the need to obtain NSE certifications for doing fully automated algo trading. Which ones? Any other things one needs to be aware of before venturing in that direction (registering with NSE/BSE, or some such thing)?
 
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#13
So you are saying that execution of semi-automated strategy one would only break even? Am I understanding you correctly?
Yes, trading manual is hard as it is. Making it automatic or semi-automatic is even harder for retail traders. one mistake one day can wipe your account. you can automate your entries and exits , but what about risk management? how will you automate that? No robot can replace a human doing risk management in markets. A simple slippage will cause a big loss if you don't watch your trades.

One of the main drawbacks or disadvantage is liquidity in stock markets, compare that to FOREX markets its a whole different ball game. On the main USD pairs you are almost guaranteed to get a fill unlike the stock markets where you cannot guarantee a fill, but FOREX is a different topic.


I know what you are thinking that you can remove the emotions out of trading by using algos. There are far more risks that you don't see. if automated trading was that easy & practical ,everyone would be making money while sleeping.



Also in one of your earlier posts, you mentioned the need to obtain NSE certifications for doing fully automated algo trading. Which ones? Any other things one needs to be aware of before venturing in that direction (registering with NSE/BSE, or some such thing)?
Check with your broker, he will be able to assist you on this.
 
#14
That is exactly what I have in mind - quant investing. Do you or anyone else on this forum have experience in developing quant strategies for Indian markets? I am especially interested in hearing from those who have tried it as retail investors.
I am very sure that the trend for the smartest electronic traders has moved from HFT to Quantitative trading / investing in the west. In India it will always be like that since the disincentive to HFT is very high from regulatory standpoint.

Hey tradingnoob I saw elsewhere that you wanted to know what kindof certification is required to do algorithmic trading in India. I believe it is this certificate. . Hope that helps ...

Also would be good to have a conversation as we have similar ideas ... so PM me with contact details.

Cheers!
Nishant Ranjan
Algo Trading in India
 

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