5Paisa Algo Trading – Review, Features, Set-up, Strategies & moreLast Updated Date: Nov 15, 2022
5Paisa Algo Trading is one of the premier services and facility provided by the firm. The Algo trading platform of 5Paisa has been applauded for its abundance of features and type of strategies which helps the 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.
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 are 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 the traders who are –
- Professional traders having 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.
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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 the .NET, C++, and other programming languages
- There is 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 place the buy orders and also exit the market when the need arises as per the pre-determined data it has.
This is an execution strategy that helps traders who trade based on the pivot calculations they do. There are a support and resistance level here in this strategy.
The data of the pivot values have to be inputted in the system using 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.
As you may know that these orders define both the values that are 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 favorable 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 at 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 limit price defined by them. The strategy automatically helps in changing the bids within the bids 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.
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 and the strategy helps in selecting the amount of each symbol intelligently and then places the stop-loss order and also calculate 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 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 the software like Amibroker or other 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.
This is another process of using this platform that is by coding the strategy in a language that is understood by the platform and then you can run the same for the execution of the trades.
So, the process of setting up the Algo Trading platform offered by 5Paisa 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 involved: Now, you have to understand the complexities which are involved in this step and for coding and then also with the API Integration.
- Payment: You have to fill 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 have to get it approved by the exchange with the assistance provided 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 Demat account by clicking on the Open Demat account button on this article
- Upload the documents and get them verified
- Once your documents and details are verified you will get the login details and you can then download and use the platform and start trading
Advantages of 5Paisa Algo Trading
- It helps in reducing the human effort. As a trader your job is to think and put the idea at work and execution part is taken care by the platform only
- It helps in keeping the human emotions and trading apart and thus helps in generating more profit most 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 and 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
5Paisa Algo Trading – Conclusion
5Paisa Algo Trading helps the traders and investors to enter and exit the market at the right time based on the fed data.
It helps them to execute the orders at the right time to capture the best possible price which is more or less not completely feasible by humans.
The Algo trading has its cons as well and it is only thus recommended for the experienced traders to use this platform who understands the risks as well.
Open Demat Account with 5Paisa – Fill up the form below
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