5Paisa Algo Trading – Review, Features, Set-up, Strategies & more

Last Updated Date: Apr 10, 2023

5Paisa Algo Trading is one of the premier services and facilities provided by the firm. The Algo trading platform of 5Paisa has been applauded for its abundance of features and type of strategies which help investors to earn well.

In this article, we will discuss the 5Paisa Algo Trading platform, its features, and benefits and how you need to set it up for your use and other details related to the platform.

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About 5Paisa Algo Trading

Algo Trading is one of the newest concepts in the market which has come a few years before and it is a form of trading which is automated in nature.

It requires the computer and pre-determined data to be uploaded so that the software determines the opportunities on its own and carry on the market analysis without any human effort.

Algo trading has been primarily developed for traders who are –

Professional traders have a good number of years of experience in the market. They must understand both the risks and the returns involved in Algo Trading.
Traders and investors who already have various strategies and want to put them on the automation to run automatically
The analysts who want to automate their technical analysis and others.

Open Demat Account with 5Paisa – Fill up the form below

Top Features of 5Paisa Algo Trading Platform

The 5Paisa Algo Trading features include –

The infrastructure of the Algo trading system offered by 5Paisa is advanced and has some cutting-edge technologies in it
APIs are there for .NET, C++, and other programming languages
There is an assistance feature for the strategy coding
You can develop and personalize strategies on this platform
Assistance available for the stock exchange approval
For testing strategies, there is a live paper trading facility available as well.

There are various pre-approved strategies which are pre-loaded on this platform for the use of the traders. Along with that, the charting tools on the interface of the platform can be integrated with these pre-approved and pre-loaded strategies and the strategies are discussed below –

Amibroker Linked Execution Strategy

It is for the traders who are using the trading technical indicators for plotting the buy and sell signals on the charts using these indicators. Once the signals are plotted, they are uploaded for execution and this Execution strategy automatically places the buy orders and also exits the market when the need arises as per the pre-determined data it has.

Pivot Strategy

This is an execution strategy that helps traders who trade based on the pivot calculations they do. There is support and resistance levels here in this strategy.

The data of the pivot values input in the system using a CSV file ad then the strategy will execute the same and take the position in the market and also exit the same as per the data fed on it. This is for intraday trades only.

Bracket Orders

As you may know that these orders define both the values that are the stop loss level and the profit targets, so, the strategy here helps in entering and exiting the market smoothly and intelligently when the market scenario seems favourable for your strategy.

Spread or Pair Trading Strategy

This strategy helps in tracking two correlated securities’ spread. The strategy here is to enter and exit the market based on the spread difference and with the hope that the spread will converge in the later part of the day.

Bulk Buying and Selling Strategy

This strategy which is pre-loaded on the 5Paisa Algo Trading system helps the manual traders to get a better price on an average basis instead of the limited price defined by them. The strategy automatically helps in changing the bids within the bid range defined by you when the market changes.

Call Execution Strategy (Buy/Sell)

The traders who have opted for the trading calls from the brokerage house and the research house can feed those trigger points on the system of Algo trading in a CSV file and the strategy will execute the same on its own.

Jobbing Strategy:

This one is the last strategy that is pre-loaded on the system of 5Paisa Algo trading. It is a strategy based on the highs and lows in the market and there are innumerable symbols the strategy helps in selecting the amount of each symbol intelligently and then places the stop-loss order and also calculates the amount of profit for exits.

How to Set up 5Paisa Algo Trading?

For setting up the Algo Trading system you have to understand a few things. First, you have to inevitably open a Demat account with the discount broker 5Paisa and then log in and download their Alto Trading platform.

Now, there are two processes of Algo Trading –

Charting or Macros Based Triggers

On software like Amibroker or others like you have built a trigger in MS Excel using Macros can be transferred to the Algo trading platform and the system will run the file to place the trade orders and also exit the market. The information needs to be sent via some plugin.

Programmed Algos

This is another process of using this platform that is by coding the strategy in a language understand by the platform and then you can run the same for the execution of the trades.

So, 5Paisa offers the process of setting up the Algo Trading platform once you have it and you have an account with them is as follows –

The conception of Idea: First you have to discuss the strategy you have in mind or the one you use for trading that you want to automate via this platform.
Determine the complexities involve: Now, you have to understand the complexities which are involve in this step and for coding and then also with the API Integration.
Payment: You have to fill out a form and place your undertaking and make the payment
Coding of your Strategy: There are experts at 5Paisa who will code your strategy as provided by you or you can get the API documents with which you can code the strategies you have in mind by yourself
Testing: Once the strategy is coded, you have to test run the same for understanding whether it is working or not. You have to test in a live-like trading arena to get the best results.
Approval: Finally, if you found your strategy working correctly, you get it approve by the exchange with the assistance provide in the software itself.

And, you are good to use the strategies that you have coded for your trading.

How to own 5Paisa Algo Trading Platform?

For owning the 5Paisa Algo Trading you have to –

Open a Demat account by clicking on the Open Demat account button in this article
Upload the documents and get them verified
Once your documents and details are verified you will get the login details. You can then download and use the platform and start trading

Advantages of 5Paisa Algo Trading

It helps in reducing human effort. As a trader, your job is to think and put the idea to work. The platform take care of the execution part.
It helps in keeping human emotions and trading apart and thus helps in generating more profit most. It often as the decision are executed based on real data and not any emotions
It is not manually possible to scale up the strategies to many stocks. Thus the software helps in doing so.
There are pre-approved and pre-loaded strategies which you can use for your trades
You can feed in data and strategies anytime and use them for your trading purpose