Algo trading or algorithmic trading is a process of executing orders using automated and pre-programmed trading instructions. In simple words, an algorithm is a group of directions designed to solve a problem.
Thus, algo trading makes use of complex formulas to make decisions regarding the buying and selling of securities on the exchange.
In algorithmic trading, one creates a trading strategy and programs the algorithm basis this strategy after having back-tested it. The algorithm then trades following this strategy.
Given that algorithms can process data in a faster and more error-free manner than humans and also eliminate emotions from trading, algo trading results in better-informed decisions with real-time data.
Further, these algorithms can work round the clock to offer accuracy and speed not possible with human trading.
Traditionally, traders have been automating their trading process using custom-made trading software and Excel macros. While both are time-consuming, the former is also quite expensive and the latter requires extensive human effort and only partially automates the process.
With various amendments in trading laws over the years, algo trading has gained rising popularity in India. To facilitate this, several algorithmic trading software and tools are available in the market.
Good algorithmic trading software is one that allows easy access to market and broker data, supports multiple instruments as well as markets, allows creation and testing of any trading strategies, has a user-friendly interface, provides readily available reports, has a reliable architecture as well as efficient order management and execution capabilities.
With the market inundated with many such algo trading platforms, we curate the top 5 algo trading software in India. We also compare their features, pricing, and limitations to make it easy for you to choose what suits you best.
Top 5 Algo Trading Software in India 2021
1. PHI 1
- Provides backtesting, scanning, analytical, and deployment tools all-in-one, making it a one-stop solution for systematic trading
- Allows multiple testing strategies like bulk backtesting, grading on scenarios, and scenario backtesting
- Advanced Charting for plotting multiple indicators for live updates
- Multi-symbol Strategy Creator enables a user to create, test, and analyze multiple symbols or instruments with ease
- Provides over 120 indicators for free
- Intuitive and easy-to-use interface
- Offers standard and calendar-based risk controls
- Offers multi-broker integration
- Users can create custom screeners by supplying a mathematical expression
- Single dashboard to monitor the trading by date interval, strategy, time-frequency
- No download or installation required
The platform has a lifetime free plan with enough services to chart, screen and do basic research on strategies.
The paid plans begin with a basic monthly plan of Rs. 699/- which allows you to take your strategies live and is one of the most affordable algo trading software in India.
- Currently, PHI 1 provides data only for Indian Markets.
- Knowledge of basic Python Syntax is required to define trade entry and exit conditions.
2. Zerodha Streak
- No requirement of prior knowledge of coding
- Easy to operate with steps like create strategies, backtesting on the basis of maximum gains, maximum loss, average gains, average loss, etc. with a lookback period of up to five years, making it one of the best algo trading software in India 2021
- The algorithm can be deployed in up to 20 scrips at once
- Active real-time triggers, actionable alerts, and notifications
- No download or installation required
Provides 4 monthly plans, starting with a basic plan of Rs. 500/month, a premium plan of Rs. 900/month and an ultimate plan of Rs. 1400/month. The plans come with a daily limit on scans and backtests.
The platform also offers quarterly plans starting from a basic plan costing Rs. 450/month effectively.
- Presently has limited tools and indicators for technical analysis
- Not free to use. Has a 7-day trial period.
- Cannot be used for commodity/currency trading
- No advanced charting and no order execution
- Cannot create custom screeners
- Cannot code custom strategies outside of predefined indicators.
- Requires manual intervention for order entry.
- Cannot create Pairs trade or arbitrage type multi-symbol strategies.
- Cannot monitor multiple different time frames to make a decision.
- Cannot monitor the equity and its derivatives to take a decision in the strategy.
- Lacks real-time portfolio monitoring
- Advanced real-time charting with portfolio backtesting and optimization
- AmiQuote, a universally free quote downloader, collects current, end-of-the-day, and historical data from finance sites
- Amibroker Formula Language (AFL) code wizard with the addition of code editor enables a user to use English words to create customized technical analysis formulae
- Functions like Exploration and TradeRisk to create custom filters and risk control
- Automatic order execution
- Allows to trade directly from charts using an auto-trading interface (which works with Interactive Brokers)
- Additional functions like custom metrics, rotational trading, multiple currency support, portfolio-level monitoring, etc.
AmiBroker – Technical Analysis Software is available as a single-user license with a first-time user license starting at $279 for the standard edition, up to $499 for the Ultimate Pro Pack. AmiQuote – Universal Quote Downloader and AFL Code Wizard charge a Single User License fee of $99.
- Requires learning of complex Amibroker custom language to create strategies and code testing options
- Lack of a standard template, the requirement of writing the code can be challenging for beginners
- Mainly suitable for big traders who have tech team/ assistance at their disposal due to the coding requirement for strategy creation and debugging
- Relatively expensive
- Available only for desktop
- Can only run one database per instance/ session, which implies that you cannot open more than one database without opening multiple instances of Amibroker
- Requires buying of a bundle to access add-on features like AmiQuote and AFL Code Wizard
4. Ninja Trader
- Available for free to users with a Funded Account® for using standard features like charting, market analysis, and live trading, with partial and full strategy automation
- Ninja Trader Ecosystem, a third-party developer community, has a plethora of third-party apps and add-ons available for the platform’s users
- SuperDOM order entry and trade management system grant enhanced customization
- Automated Trade Management (ATM) strategies are a part of the Trade + Feature Suite
- Chart Trader enables users to place and manage trades directly from a chart
- The number of strikes for Option Chain has been increased
- Additional tools include Time & Sales, Level II, Hot Lists, etc.
Ninja Trader has three plans – Free, Lease, and Buy. The free plan allows the use of advanced charting, backtesting, and trade simulation.
The Lease plan starts with a monthly fee of $60, while the Buy plan comes for 4 monthly payments of $329 each or a one-time payment of $1099.
- Free plan with a Funded Account® only includes basic features. To access premium features, users need to lease or buy the packages, where pricing can go on the higher side.
- Ninja Trader is available on desktop only on Windows
- Need to use a supporting broker to trade equities
- NinjaTrader brokerage clients can use the CQG mobile app, but no app available yet if one is using another broker.
5. Meta Trader 5
- Specialized integrated development environment MQL5 IDE enables traders to create, debug, test, optimize and execute trading robots
- Strategy Tester enables visual testing, genetic algorithm, optimization, etc.
- MQL5 Wizard generates the Expert Advisor Code to create trading robots for beginners
- Four modules of execution – Market, Instant, Request, and Exchange execution
- Market Liquidity Pool to monitor the market depth
- Additional services like MetaEditor, strategy developers’ database, copy-trading, and virtual hosting
For Traders, MetaTrader 5 trading platform has an initial deposit.
For Brokers, the platform has three variants – Entry, Standard, and Enterprise depending on their requirements.
- Hedging for exchange markets is disabled
- MT5’s programming language MQL5 is different from MT4’s MQL4, requiring traders to relearn coding and techniques
- The programming language and advanced features might be difficult for beginners
We just reviewed the top 5 algo trading software in India.
With there being multiple options for algorithmic trading platforms in India, one can be spoilt for choice!
We urge you to choose an automated trading software that suits your requirements and preferences.
Why try PHI 1?
Whether you are new at algo trading or a seasoned trader, you have seen enough compelling reasons to try PHI 1.
The one that takes the prize is that it is a one-stop solution for systematic trading. PHI 1 is built for traders with the aim to set the trader free from daily mundane tasks so you can focus on the real deal!
Unleash your trading superpowers with PHI 1’s end-to-end algo trading software.
Get a free trial for one of the best algo trading software in India 2021.