Tag Archives: mcx robo trading

  • -


Algorithm trading is also known as automated trading, black-box trading, or algo-trading. It uses a computer program that follows a defined set of instructions to place a trade. The trade will be able to generate profits at a speed and frequency that is impossible for a human trader.

The instructions should be based on timing, price, quantity, or any mathematical model. Along with profit opportunities, algo-trading gives markets more liquid and trading more systematic by doing away with the impact of human emotions on trading activities.

mt4 auto robot software - algo trading in mcx commodity india

Benefits –

  • Most of the trades sell at the best possible prices.
  • The trade order placement is quick and accurate (there is a high chance of execution at the desired levels).
  • Trades are on time and instantly in order to avoid significant price changes.
  • Reduced transaction costs.
  • It provides the option of simultaneous automated checks on multiple market conditions.
  • It reduces the risk of many pertaining errors when placing trades.
  • Algo-trading can be backtested by using historical and real-time data that is available to see if it is a viable trading strategy.
  • It reduces the possibility of mistakes by human traders based on emotional and psychological factors.
  • Almost all the algo-trading today is based on high-frequency trading. It attempts to capitalize on placing a considerable number of orders at rapid speed throughout multiple decision based on various markets and parameters that are also pre-programmed instructions.


One can quickly start the Algo trading in their trading pattern by following simple steps. First one needs to create or formulate a strategy which would do the auto trading. All auto trading works on the MT4 platform. One should research and formulate the strategy with an aim to get the highest possible profits. Once the strategy is complete, the procedure needs to be coded accordingly. Then comes the ‘examining’ part.

Backtesting always helps the trader to check if his/her strategy is full proof or not. Through backtesting, the process checks much historical data with the help of the strategy formulated. Without verifying with past data, the strategy has the possibility of being failed.

Algo trading is useful in many forms that include-

  • Many Mid- to long-term investors like pension funds, mutual funds, insurance companies use algo-trading to purchase stocks in vast quantities when they do not aim to influence stock prices with discrete, large-volume investments.
  • Loads of short-term traders and sell-side participants like brokerage houses,speculators, and arbitrageurs also depend on this for trade execution.
  • Systematic traders like trend followers, hedge funds, or pairs traders also use algo trading in order to program their rules of trading and let the program trade automatically.

Technical requirements-

  • Sound Computer-programming knowledge to program the required trading strategy, hired programmers, or pre-made trading software.
  • Robust Network connectivity and access to trading platforms to place orders.
  • Access to market data feeds are generally checked through the help of this algorithm for opportunities to place orders.
  • This also comes with fantastic ability and infrastructure to backtest its own system. Once it is complete even before it goes live on real markets.
  • The Available historical data for backtesting depends on the complexity of rules implemented in the algorithm.


  • With algo trading, the algorithnm plays the main. So, there is no place for human emotions. As there are no emotions on the place of trading, traders can feel the ease while trading. As the computer moves the test only, the trader cannot hesitate or question the trade.
  • It allows the trader to trade at his own comfort. Traders do not have to sit in front of their computers all the time to execute the trade.
  • The algo trade would help the trader in placing his own orders with the help of the strategy. This also helps in fixing certain trades so traders’ sleep won’t be disturbed.Managing various trade and positions is a massive task for traders.
  • With the help of algo trading, one can easily place multiple orders and manage them as per the strategy fixed. You can quickly achieve diversity through algo trading. It can surely benefit the trader with huge profits as well.


Algo trading can introduce a discipline that is necessary for trading. After a few failures and losses, traders usually divert from their strategy. But, algo trading will omit the emotion part and help the trader to place the right order at the right time.


  • -

auto trading amibroker benefits

Fully Automated Trading is software to trade the clients share automatically. This means that the broker or the client doesn’t have to be near a system to operate it physically. The software is developed with advanced mathematical protocols and one of a kind algorithm. With the clients own strategies and plans, they can make their profit. Better the plan, better the gain will be. There are many ways a client or a broker can strategics their earnings.

auto trading amibroker benefits - mcx crude oil intraday

Ways to get better results.

  • The client can plan to use the Cash vs. future bidding NFO/NSE, BFO/BSE. This is an arbitrage algorithm which gives live data of the difference between the cash and future
  • Another option is Future vs. Future Binding NFO/CDS/BFO. It rolls over arbitrage that tries to process the user-defined cost difference between the future segment and cash.
  • Next is Cash vs. Future Arbitrage NFO/NSE. This is another arbitrage algorithm that handles the situation where the same exchange takes place between the user-defined price of the future segment and the cash.
  • The other is Option Hit Model (2L3L IOC NFO/CDS). It helps the clients to generate 2leg/3leg combination which includes straddle/butterfly/strangle and many more.
  • Next is Conrev Bid NFO/CDS. This procedure exploits inconsistencies in the estimation of synthetic positions or infringement of put-call equality rule. Offering technique under a specific condition gives you more than the client’s ideal order.

Few Other important Strategies

  • Now let’s talk about the next strategy. 4L Strategy (IOC + Bid) NFO/CDS is a 4-Leg Strategy that allows all the clients to generate 4 leg option combinations. Among which the orders are in the form of 3-Leg IOC + 1.
  • In this strategy, the user has the choice of whether to place orders bidding based or IOC based. Next is Option 4L IOC Strategy NFO/CDS. Now, this is a 4-Leg Strategy that allows clients to generate any 4 leg option combination like Condor Strategy. Orders are placed in the form of 3-Leg IOC + 1.
  • 2L3L bidding NFO/CDS/BFO is one of the strategies that give the users a privilege to create any 2leg/3leg combination which includes straddle/butterfly /strangle and many more. It is a bidding strategy with the specific condition; where the user can get more.
  • Future vs. Future Arbitrage NFO/CDS/BFO. It is a rollover arbitrage strategy which will place an IOC order (2-Leg), whenever the market spanning is greater or equal to the user-required limitations.
  • Implicit vs. Explicit Spread NFO is an arbitrage strategy between day spread (explicit) and 2l IOC (implied). If the client specified order is better than the market spread. The machine will place an order for 2L IOC on the trade of implicit.

Advantages of Fully Automated Trading

  • One of the most critical benefits of Fully Automated Trading System is minimizing emotions. As the whole process is automatic, the client doesn’t have to keep much in their head. They can peacefully do the entire task.
  • Second is achieving the plan. As we know that having a loss is a part of life. The clients can get losses at some point of the trade. But when we use the automated trading software, there is no chance the client or the broker will have any significant
  • This function helps to make a lot of trade profit for the clients. One of the most important advantages is it improves the speed of the order entry. We know that the stock market fluctuates a lot and with that the client’s profit and loss too. To resolve that, these trading helps the client too quickly buy and sell the share to get the most benefit out of every
  • Another process that effects the Fully Automated trading is back testing. In this process, the system relies on the algorithm and the protocols embedded in the system to work on the stocks. The app uses all the historical data to get present and future data for a better profit margin in every trade.


It is a big step towards the stock market and trading analysis. The fully automated trading saves a lot of time and gives maximum profit to the brokers and clients. To work on this platform, the client needs professional workers who can handle the software and al the trades.

Paid Trial

Translate »