top 2 algorithmic trading in India
The talk about algorithmic trading isn’t new. While it became yesterday’s talk in India much later than the US et al., Indians are still interested in what algorithmic trading really is, and whether it’s doable for them, While some search for algorithmic trading for the proper reasons, they’re often intimidated by the plethora of complexity and technicalities that surround algorithmic trading. But not anymore. During this article, we’ll not only simplify algorithmic trading for first-timers but also demystify the misconceptions that surround it.
Understanding
algorithmic trading is easier if you understand how it
really works. At the guts of algorithmic trading are algorithms making
trading decisions within the market. That’s right – these algorithms
are usually market strategies that are coded into a language that computers can
understand. These algorithms constantly sift through real-time market
data to look for conditions that have got to be met
for a technique to return into effect – in other words, when
programs see that each one condition of a specified strategy is
being met, they generate a sign to shop for, sell, or hold
– counting on things. While some alga
traders continue to automate these signals to form a
program that executes the trades on its own – et al. simply feed these
signals into their trading account, so that they will be
executed with one tap.
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Go beyond the method
So now we all know how algorithmic trading works. But knowing this is not enough to try to to algorithmic trading, is it? Then let’s dig deeper. For algorithmic trading to figure, you would like to be ready to feed market data to your program, and then influence it by making trades. this is often where subsequent big concept comes in – that’s, APIs.
To interact with the stock exchange, your algorithmic trading program needn’t be built from scratch anymore. APIs, or Application Programming Interfaces are a paradigm in modern computing, that allows developers to show the specified functionalities of their own programs for others to use. For instance, if a broker features a digital trade execution engine that interacts with the stock exchanges, they will simply open certain functionalities like real-time market data streams, or the trade execution engine for others to access through their programs.
Trading APIs essentially allow you to perform critical trading functions – like accessing market data on stocks in real-time, executing trades through an account, or managing account-related data digitally. SmartAPI is one such example of a trading API, that’s made available by Angel Broking for free of charge. With trading APIs, your path to truly doing algorithmic trading is formed much simpler – understand how within the next section.
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