Small question regarding AFL's in algo trading

akhill

Well-Known Member
#1
Suppose I want to utilize the algo trading facility, then I need an afl, which issues consistent buy and sell signals.. right ? here, when I submit the AFL for broker/exchange for scrutiny and issues, Do I have to give an AFL that is written by me and only me ? or can I apply for algo trading with any AFL that is randomly available on internet ?? just curious to know.

moreover, what is the right amount of capital needed for algo trading (any SEBI regulations on capital ? ) ... is there a block on number of trades per day or so like that ?
 

Tamil trader

Well-Known Member
#2
you can do unlimited trading.

you dont need to give your afl to exchange

Dont use the afl from public website.. backtest your afl . if it gives good result, then use it.

Eventhough algo trading looks easy, if the sudden rally exists, stoploss order or limit order will not be triggered. at that time, you need to place the order manually.
So you need to continuously watch the system whether your algo software works or not
 

mastermind007

Well-Known Member
#3
Suppose I want to utilize the algo trading facility, then I need an afl, which issues consistent buy and sell signals.. right ? here, when I submit the AFL for broker/exchange for scrutiny and issues, Do I have to give an AFL that is written by me and only me ? or can I apply for algo trading with any AFL that is randomly available on internet ?? just curious to know.

moreover, what is the right amount of capital needed for algo trading (any SEBI regulations on capital ? ) ... is there a block on number of trades per day or so like that ?
You do not have to show/give the AFL but you certainly have to declare the fundamentals and logic embedded within. Basically, their job is to avoid market making activities, pump and dump.... etc etc... strategies deemed illegal or deceptive.

"Randomly available AFL for scrutiny"..... hmmmmm thats a thought.

Unfortunately, SEBI is manned by literate folks so this gem of an idea may not fly but if its your lucky day.... who knows?

More capital has advantages.

I am told that there is restriction of no more than one trade per second but dunno if its official policy or technical restriction.
 

Algo

Active Member
#5
First of all, you dont have to send your Amibroker codes to the Exchanges...I don't think they have the time or the inclination to look at the codes developed by thousands of retail users.
About margins...well that depends on your strategy and the number of calls it generates on an average, per day
Best way to use AFL for automation is to have a proper execution logic attached with it, which is usually developed over an ATS. This execution logic will control your triggers, SL,TSL,PT Slicing, Multi user execution,Reverse double entry automatically. This can be pre-defined or can be done in intraday. Some traders i know are using AFLs to do automated multi client execution as well as positional stratgey. Can amibroker based strategy go any more advanced.
 

Algo

Active Member
#6
Best way to use AFL for automation is to have a proper execution logic attached with it, which is usually developed over an ATS. This execution logic will control your triggers, SL,TSL,PT Slicing, Multi user execution,Reverse double entry automatically. This can be pre-defined or can be done in intraday. Some traders i know are using AFLs to do automated multi client execution as well as positional stratgey. Can amibroker based strategy go any more advanced.
And also there is no need to get AFL verified or approved by exchanges. Do not know how we arrived at that. Usually NSE approves execution logic for a vendor and that execution logic can be attched with any afl. For MCX parameters are much stringent for god knows what reasons. We are not arbitragers who will shoot 1000 orders in a second.
 

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