Algorithmic trading is a process that uses computers, to place trades perfectly. The key benefit is that the computer and the algorithm, never breaks our rules.
Algo trading is fascinating and mysterious, but it simply means our trades are executed flawlessly and the computer does all the work, after we input our criteria.
Notice I said “places trades perfectly,” and “executed flawlessly”. When we develop an algorithm for trading, our goal is to write a program, that follows our strategy, 100% of the time.
The Algo, is a set of specific criteria, that:
- Finds trades that match our edge.
- Identifies the predefined entry criteria.
- Place the trade entry.
- Analyses and tracks price movement, bids, offers and transactions.
- Identifies the predefined exit criteria.
- Places the exit orders to complete the trade.
Finding the trade that matches your edge is crucial to the entire process. A well-definededge, identifies the opportunity. Today’s powerful computers allow traders like us, to spot and trade opportunities, previously only available to the big money institutions. The ever expanding industry of computerized trading, is a changing landscape that appears to have no bounds, save imagination, and computing speed. The bottom line, there are a million ways to describe algorithmic trading, and it can appear intimidating, but the “little guy” can and should, seek to compete. Access to programmers, consultants, high-speed access and powerful server computers, are within your reach. For all the fancy trader lingo, this is simply automated trading. It’s just a matter of your time frame.
Algo trading is the future
Developing an edge, and converting it into programming code, is where the money is earned in algorithmic trading. People can combine multiple strategies into a single program and scan 100s of stocks in a fraction of a second to take powerful entries which is impossible for manual traders.
Algorithmic strategy development is growing faster than personal computers in the early 1980’s. Today it is estimated that up to 70% of all trades in the US markets are executed by computers.
To put the growth in perspective, a Google search on “Algo trading” returns 1.2 million results. A search using Google Trends, for the word “Algo” and “HFT” have more than doubled the last 5 years.
“There has never been a better time to venture into Algo trading. 16% of trades in India today happens through Algo trading only which is only expected to rise in the future”
BENEFITS OF ALGO TRADING
- Transform your manual strategy into a complete automated robo system.
- 100% Rule based Automatic Investing System.
- Better accuracy levels compared to your manual methods.
- Human emotions under control and full limit on greed & fear.
- Clear visibility into the maximum risk.
- No manual errors.
- Position sizing and money management based on mathematical models.
- Complete historic back test and validation in minutes.
- Portfolio diversification.
- Better income and great compounding in the long run.
AlgoZilla is a power packed workshop which helps traders to convert their manual idea into a powerful Algo system free from emotions of greed and fear fueled by best in class position sizing and money/ risk management algorithms.
About the Mentor
Mr Rajandran R
Rajandran is a Full time trader and founder of Marketcalls, hugely interested in building timing models, algos , discretionary trading concepts and Trading Sentimental analysis. He now instructs users all over the world, from experienced traders ,professional traders to individual traders.
Rajandran attended college in the Chennai where he earned a BE in Electronics and Communications. Rajandran has a broad understanding of trading softwares like Amibroker, Ninjatrader, Esignal, Metastock, Motivewave, Market Analyst(Optuma), Metatrader, Tradingivew,Python and understands individual needs of traders and investors utilizing a wide range of methodologies.
Mr Ashok Devanampriya
Ashok Devanampriya is the founder director of Cautilya Capital. He is a seasoned stock market investment professional with a decade of experience in investing and trading. He preaches the concept of Techno Fundamental Analysis of stocks to generate better returns and long term financial growth in Indian equity markets. He is also an algorithmic trader in the Indian derivative markets.
Before the idea of entrepreneurship caught his thoughts, he was associated with companies like SAP, TOYOTA, i2 & TALLY. He has 15+ years of experience & has delivered many complex projects across North America, Europe & Asia Pacific Japan regions. Ashok holds a bachelor degree in Mechanical Engineering from P.E.S. Institute of Technology in Bangalore – India & an MBA in Strategic Planning from Edinburgh University – United Kingdom.
What will you learn?
1.Overview of Algo trading.
2.The algo system flow
3. Algo Trading system ideation.
4. Algo Trading system design
5. Algo Trading system programming.
6.Overview of amibroker software
7.Amibroker programming – AFL
8.Algo Position sizing process and systems
9.Algo Risk management and settings.
10.Algo Filters & timings.
11.In sample/ out of sample data analysis
12.High level backtest
13.Detailed back testing
14.Walk forward testing
16.Monte carlo simulation
17.Algo system Validation
18.Algo system Optimization
19.Fine tuning and assembling everything.
20.Go-Live with your robot.
FREQUENTY ASKED QUESTIONS:
1. Is Algo trading legal in India?
YES. Algo system is legal in India and we have been doing algo trading since 2 years.
2. Can I make an 100% auto system or semi automated system?
You can make an 100% auto system. You just have to start the algo and stop it end of the day.
3. Will properly coded & tested algo systems work forever?
No. you need to review your algo systems on a quarterly or annual basis for any change in the behaviour.
4. Is Algo trading same as High Frequency Trading (HFT)?
No. HFT is different. Retailers cannot do it due to the high cost and regulations involved.
5. Which programming language will you teach us?
Amibroker is the best software available and the most easiest to code as well.
6. Do you guys provide any help in coding our strategies after the workshop?
Some of our students will be able to do it themselves. If your strategy is complex, we can help u to automate it. But it will have an additional cost impact.