Indian Brokers offering Algo Trading to Individual Traders(Reposting)

[puneetsinghania1980]

Hi Sandip, brokerage angle is something I would not be able to help with my team as this is a debatable topic . With regards to the slippage chasing algorithm, can you define with an example so that I can get it sent to my technical team and see the feasibility. If it is a simple requirement then perhaps I myself would be available to give answer straight up.

By the way market orders are allowed in algo trading. I can demonstrate also if you want that live. There is some confusion. In the market on that but since we are quite ahead in algo trading solutions for clients, we understand this space better...


Kindly do not apologies for anything... This is an open discussion and hence no one should take any offence.... Cheers

 

[sandip1952]

Hi Sandip, brokerage angle is something I would not be able to help with my team as this is a debatable topic . No, I did not expect you would be able to help. Retail traders are the milch cow. It's all about profits and traders be damned.With regards to the slippage chasing algorithm, can you define with an example so that I can get it sent to my technical team and see the feasibility. If it is a simple requirement then perhaps I myself would be available to give answer straight up. Well...you throw up a big challenge and I may look like a fool at he end of the day. But I will try to state what I think of it.

Example: @0 sec buy order placed at Rs. 100/-. The price is 101/-. No trade......@t sec price=105/-,,,,,previous order now revised..105*k (say k=0.99) and new order placed,,,price has moved further to 110/-,,,@t1 sec,,,new order=110*k1(say k1=0.995 and the variation between k and k1 defined by the user in param by rule. Similar for waiting time in secs=t, t1).

This is a very raw example but just an example.

By the way market orders are allowed in algo trading. I can demonstrate also if you want that live. There is some confusion. In the market on that but since we are quite ahead in algo trading solutions for clients, we understand this space better... That's a piece of good news in an otherwise dismal scenario. Kindly explain the risks involved with market rates, which, I was given to understand, were considerable.


Kindly do not apologies for anything... This is an open discussion and hence no one should take any offence.... Cheers

That is well taken, thanks!

 

[puneetsinghania1980]

Hey Sandeep, quite to the contrary, retail traders do not make money for brokers. It is the large traders who do. It aligns with the golden 80:20 rule.. 80 percent of your revenues would come from 20% of your customers..

With regards to market order risks.... If you are trading small quantities and in fairly liquid scrip then market orders do not pose any significant risk. However if the orders are large, the market rates are very risky. Large trades do not use market orders at all because the slippage costs get accentuated by the size of their orders and they prefer limit. Whereas small traders can easily go for market orders without any issue...cheers

 

[sandip1952]

Hey Sandeep, quite to the contrary, retail traders do not make money for brokers. It is the large traders who do. It aligns with the golden 80:20 rule.. 80 percent of your revenues would come from 20% of your customers.. Yes, I know about "Pareto Principle" working in trading too. But big traders mostly rely on scalping, don't they? In that case how does your brokerage plan of payment by volume help them? And if small traders are not a big profit issue, what stops the brokers from customising brokerage plans for them?

With regards to market order risks.... If you are trading small quantities and in fairly liquid scrip then market orders do not pose any significant risk. However if the orders are large, the market rates are very risky. Great!! If I can use market in algo, it should bring slippages to zero, isn't it? Can your team, which is expected to provide some help, demonstrate this? Large trades do not use market orders at all because the slippage costs get accentuated by the size of their orders and they prefer limit. Whereas small traders can easily go for market orders without any issue...cheers

And btw,,,,,,,,,,,,,,

Can you or anyone throw some light on the recently detected bug in the Omnesys trading plugin for MCX algo trading? This company is stopping so many traders from doing algo trades.

 

[puneetsinghania1980]

There is no bug to my knowledge.... Can u explain what really happened in omnesys?

 

[puneetsinghania1980]

Big traders get customized plans for sure.. You are more than welcome to discuss a customized plan for you... ...yes we can show market orders in algo being successfully executed.. Let me know when do you wanna see it..cheers

 

[sandip1952]

@Puneet

My broker's office (name not disclosed at the moment) informed me that MCX ATS through dealer terminals is not possible because of a bug in the product. I talked to two levels of officials, the highest one being a senior manager. He confirmed and informed that Omnesys has stated the bug would be fixed in about 3-4 days; which, incidentally, is end of next Tuesday.

All my contact details were already given. Your response is overdue Further, my email id is [email protected].

Regarding customised plans, I (as many more) would like to have a fixed monthly charge unrelated to volume of trading, and nothing else. Kindly have a look if that's feasible.

 

[sandip1952]

@Puneet

PS::::::::::::::::

One provider has assured to install an API with my afl and which doesn't require Nest + AND which can take care of the vanishing/reversing signals in the afl.

What about you? Do you have any solution which can bypass the clumsy, non-transparent, programmer-unfriendly N+?

 

[puneetsinghania1980]

Sandipji.. Yes that bug us very basic bug.. And it shud be resolved soon. However, why don't you ask that broker to do the other formalities. You would require the dealer terminal which would require you to become ap... This itself will take time.. So I would suggest you better get started..cheers

 

[puneetsinghania1980]

With regards to vanishing Signal.. It is not an API issue... It is an AFL issue,,, you must get checked your afl. Sometimes afl is written such that Singal are generated before candle close. If afl is written to generate signal only in candle close then this vanishing will not happen... .

We are going to give a solution soon which will be a lot more robust then the current nest plus system but will be costly... Wait for this for a while.