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What is Algo Trading

Algo trading harnesses advanced algorithms to execute trading strategies with unparalleled precision, catering to traders seeking to customise their approach for a tailored trading experience. This innovative trading form allows individuals to leverage broker-provided API keys, granting access to automated operations that transform complex strategies into seamless actions. Algo trading, gaining momentum for its ability to simplify trading through technology, enables even those without programming skills to participate effectively. Traders can back-test strategies confidently, ensuring their moves are both smart and strategic. As Algo trading becomes increasingly popular, it represents the future of trading, offering a platform where strategies are not just executed but optimised, marking a significant shift in how trading success is achieved and redefining opportunities in the financial markets.

Purpose of Algo Trading

The purpose of algo trading is to elevate trading efficiency and precision by leveraging advanced algorithms to automate and optimise trading strategies. This technology enables fast execution of orders, surpassing human capabilities and allowing for high-frequency trading at an unprecedented scale. It significantly reduces the risk of emotional decision-making and human errors, integrating sophisticated risk management tools for smarter, more strategic trades. Algo trading democratizes access to the financial markets by simplifying complex strategies, making it accessible even to those with minimal programming knowledge. Ultimately, it aims to reduce operational costs while providing the flexibility to adapt strategies in real-time, ensuring traders can maximize their market potential and investment returns efficiently.

Advantages of Algo Trading

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Fast Execution of Orders

Supercharge your trading! Algorithmic trading, driven by lightning-fast computers, slashes order execution time. Experience the pinnacle with high-frequency trading, enabling traders to make tens of thousands of trades per second.

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Automation

Unlock automated trading magic! Pre-programmed algorithms, crafted by skilled programmers, oversee operations seamlessly—from monitoring to trade execution, eliminating human intervention. Algo trading software development demands prior programming expertise for a robust system.

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Risk management

Level up from emotional decisions! Classic traders retain manual control, risking emotional choices and potential losses. Algo trading, your game-changer, seamlessly integrates risk management—entry/exit, stop-loss, fund rebalancing—for strategic precision.

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Human Error

Most human errors! Algo trading eradicates mistakes like wrong inputs, forgotten stop-loss, and emotional decisions. With systematic precision, it ensures flawless execution, freeing you from pitfalls and enhancing overall performance.

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Cost reduction

Invest wisely! While the initial setup of algo trading may be costly, its long-term efficiency slashes operational expenses. Execute large volumes swiftly, minimising transaction costs and ensuring a cost-effective trading journey.

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Free Algo Trading Software

Code your success! Algorithms, crafted by programmers, need timely updates to align with market shifts. In the unpredictable market, even the best strategy can falter. Enjoy the freedom to modify and thrive!

Pre-Built Trading Strategies

Take your trading prowess to the next level effortlessly with our Pre-Built Trading Strategies—meticulously crafted and ready to deploy, offering a shortcut to success in the dynamic world of financial markets.

Calendar Spreads

4 Min read  |  25 Feb 2024

Explore calendar spreads in Algo trading! This strategy involves holding long and short positions in two options with different expiration dates but the same underlying asset. Benefit from time decay, where options lose value nearing expiration. Risks are confined to the net premium paid, ensuring limited loss. Enjoy flexibility—adjust or exit spreads before expiration to adapt to market shifts.

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Order Slicer Strategy

4 Min read  |  25 Feb 2024

Master market impact with order slicing! This strategy involves breaking a large order into smaller, manageable parts, executed gradually to reduce the risk of adverse price movements. Pros include minimising market impact, adaptability to varying conditions, and efficient execution for institutional traders. However, cons involve added complexity, requiring close monitoring of market conditions and timing.

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Call Executor Strategy

4 Min read  |  25 Feb 2024

Harness the power of automation with Call Executor—an Excel-based algorithmic strategy offering real-time data utilisation. Accessible and affordable, it empowers traders with rule-based, automated executions. Capitalise on Excel's data connection capabilities for up-to-date insights on stock prices, volumes, and economic indicators, informing strategic decisions. However, be mindful of Excel's limitations, particularly in high-frequency or extensive market data scenarios.

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calender spread image

Multi-Leg Strategy

4 Min read  |  25 Feb 2024

Optimise your options trading with multi-leg orders—simultaneous trades involving different strike costs, expiration dates, or asset price preferences. These orders, like spreads and butterflies, aim to trade amid volatility. Pros include potential loss limitation through strategic planning.

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What We Offer

  • Virtual Trading
  • Execution Algo
  • Backtesting
  • Multiple Segment
  • Strategy Builder
  • Prebuild Trading Strategies

Download Bigul Trading App!

Supercharge your trading on the go with the Bigul Trading App! Download now for instant access to cutting-edge features, real-time insights, and unparalleled convenience.

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Bigul Integration

FAQs

Discover all you need to know effortlessly with our frequently asked questions—your go-to resource for answers.

Algorithmic trading is a concept of self-placing orders via specially designed and coded software for executing trades on certain pre-designed conditions. It is a process of executing orders utilising automated and preprogrammed trading instructions to account for variables such as price, timing and volume. An algorithm is a set of directions for solving a problem. It is nothing but a mathematical model developed by programmers and is fed into a computer in a certain way. The Algorithms are generally designed by programmers based on their own psychology and way of trading into codes so that the deviations (delay in execution, human errors, bid-ask deviation entries, etc) which occur in between execution of orders would be suspended.

A software program that analyses market data on a real-time basis and executes buying and selling orders based upon given conditions. It is basically a mathematical model developed by programmers and is fed into a computer with conditions. As per the given rules and conditions fed into the program, if the market satisfies all the conditions, the program executes buying and selling orders with proper monitoring of the market on a real-time basis. All these tasks are performed by APIs provided by the broker's end.

Adapting an algo trading style brings various benefits into the trading approach, such as increased speed and accuracy in executing orders, reduced human errors such as wrong quantity or entered price, improved efficiency of order execution and placement, analysing large amounts of data, quick decision making based on market fluctuations, having no fear or greed like emotions as human generally doesn't cut down losses quickly.

Algo trading is a hard-coded program built for traders' ease, so it is easy for computers to work faster, quicker, and emotionless than humans. It includes real-time market data monitoring, advanced charting analysis and technical analysis tools, the ability to accurately backtest strategies, and a user-friendly interface for creating and executing trades. Some platforms may also offer prebuilt algorithms, automation capabilities, and the ability to integrate with other financial tools and services.

Yes, Bigul's Algo Trading platform offers customisation of your trading strategies according to your own trading style. You can design, create, and backtest your strategies here with us and execute them with our advanced algorithmic engine. It includes the ability to set your own rules, parameters and conditions for trade execution. It also allows you to create a strategy tailored to your individual needs and goals.

Yes, our algo trading platforms are designed specifically for high-frequency trading strategies, which require extremely fast order execution and low latency.

There are no charges for using Bigul's algo trading platform.

Yes, Bigul allows the ability to backtest your strategies, which allows you to see how your strategy would have performed in historic market conditions and improvement measures if there are any deviations in the strategies that occurred. This can be a useful approach for refining and improving your strategy before using it in live markets.

There are no charges for backtesting, as Bigul offers its Algo Trading platform free of cost for its users.

Yes, Bigul's Algo Trading platform offers automation capabilities, allowing you to automate your trading strategies and have it execute your trades automatically based on your defined rules, parameters and conditions. This can help to eliminate the need for manual intervention and adjustments into trades and can help to ensure consistency and discipline in your trading approach with no to fewer human errors.

Yes, it is possible to use multiple algo trading platforms simultaneously to execute different trading strategies or to take advantage of different platform features.

Algo trading is mainly used by institutional investors and large brokers to cut down their trading costs. But it is also accessible to retail clients; it can be a powerful tool for experienced traders, whereas retail clients with less experience can also use it for sustainable trading. Bigul also offers educational resources and a user-friendly interface to help its users get started and become more confident in their trading strategies.

Algorithmic trading is no doubt faster than manual trading because the placing of buy-sell orders is automatic and computer-driven. Algo trading's core concept is that it reduces the overall time taken for order execution because computers can place orders at far higher speeds than human operators sitting at trading terminals. Algo trading offers High-frequency trading, which allows a trader to make tens of thousands of trades per second.

Algo trading is considered absolutely legal in India, as per SEBI regulations.

Bigul offers zero-cost algo trading on its platform.

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