Why you should automate your trading strategy?

Automated or algorithmic trading is the process of automatically executing trades based on predefined rules by traders. Traders decide the entry and exit points as well as the strategy to be followed by the algo trading system into the system, which automatically executes trades based on this information.

Automated trading comprises 70% of the total trading volumes in the US and other developed markets currently. In India, nearly 46% of the total trades on NSE and 30% of those on BSE are algorithmically performed.

This number is growing even further as algorithmic trading gains more popularity. While algorithmic trading has several benefits in terms of convenience and efficiency to traders, the one that stands out is the ability to automate one’s trading strategy using the algo trading platform.

With algorithmic trading, you can also fully automate the signal generation and execution of a trading strategy. You no longer need to monitor stock prices or put in orders manually.

Let us look at some benefits of automating your strategy in detail:

1. Create and execute multiple strategies simultaneously

While regular trading involves spotting opportunities manually, it leads to a loss of time and opportunities as the trader can only focus on a few things at once.

With algorithmic trading, a trader has the ability to spot multiple trade opportunities without the need for staying on the screen constantly. Even multiple strategies can be executed at the same time.

All the trader has to do is input the strategy codes and punch in conditions related to trade entry and exit points, stop loss condition, etc.

The strategies will then be deployed by the software, enabling the trader make the most of tradeable opportunities.

2. Backtest and Bulktest under many conditions

Automated trading enables backtesting of your trading strategies using historical data. This enables you to gauge the effectiveness of your strategy under various market conditions, thereby reducing your risk during actual trading.

Few software such as PHI 1 even offer bulk backtesting, which aids in identifying scenarios where your strategy may underperform. Additionally, PHI 1 has a scenario grading feature wherein your strategy is graded or scored in multiple market conditions, further minimizing risk.

Strategy Grading in PHI 1 basis various market scenarios
Strategy Grading in PHI 1 basis various market scenarios

3. Save time by saving your strategies in one place

Traders can save a tremendous amount of time by entering strategy codes as well as instructions such as stop loss, take profit, exit point, entry point, and saving these onto the algo trading software.

This allows the trader to focus on monitoring trades and markets more conveniently. Since algo trading software acts super quick compared to humans, execution is also quick, minus the intervention of human emotions.

Thus, you can make the most of quickly moving/highly volatile market scenarios.

4. Get trade diversification

Automated strategies help take care of multiple types of trades as algo software can monitor many markets compared to humans. This enables trade diversification, further cutting down risk.

With multiple automated strategies amid multiple markets, the software can spot opportunities across all markets that it has been instructed to monitor. This protects traders from the concentration risk of trading in a single or very few markets.

5. Eliminate any room for error in execution

When you automate your strategy, there is no room for error in your trades. The algo trading platform will work exactly as it has been instructed. This frees the trader to do more important research-oriented tasks rather than sitting in front of the screen all day trying to spot opportunities.

Automated trading strategies also keep at bay any biases traders may have, as it goes exactly as it should in a predefined manner, whatever the market situation.

Further, it enables the trader to simplify strategies as the trader has to break them down so as to program them. This helps traders get a detailed glimpse into their strategies. Many a time, this also makes traders simplify otherwise complicated strategies.

Want to automate your trading strategy? Try PHI 1

PHI 1’s advanced strategy creator allows traders to create, test, and analyze any automated strategy limitlessly. In addition, its Multi-Symbol Strategy Creator aids in creating over 125 types of strategies.

PHI 1 also provides robust support to create automated strategies through its knowledge section and webinars.

PHI 1 provides all the benefits of algorithmic trading and more–the biggest advantage being that it sets the trader free from the daily, time-consuming tasks by providing all trading tools from screening to execution–at one place. PHI 1 is, therefore, your one-stop solution to automated trading.

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7 reasons why PHI 1 is perfect for Intraday Traders

As the world moves towards automated trading, much of the hassles that come with manual trading like constant monitoring, excessive time consumption, and emotional bias are being done away with. With the rising popularity of algo trading, Intraday traders today have multiple trading-related tools at their disposal.

But, rather than creating a convenient environment, just as too many cooks spoil the broth, too many tools often distract traders from their main task of trading.

As no tools are available that constitute a one-stop solution to systematic trading, these multiple tools need to be integrated to complete the trading process. This shifts the focus of the trader from exploring profitable opportunities in the market to handling mundane tasks.

This exercise results not only in the waste of time and effort but also opportunity loss, directly affecting the trader monetarily.

Not only that, robust, well-proven tools also come at a high cost and most require knowledge of complex coding and languages.

Keeping in mind the hassles of using multiple tools, what intraday traders need is a comprehensive software that handles the entire trading process. PHI 1 can be the perfect enabler for intraday traders considering this aspect. 

Here are 7 compelling reasons why PHI 1 is perfect for intraday traders:

1. Advanced Charting Allows For Detailed Analysis And Saves Time:

PHI 1 comes with advanced charting features and offers more than 120 indicators for free. Intraday traders can also access real-time and historical charts with PHI 1.

How does this benefit the trader? Traders can plot many indicators for live updates. They can also seamlessly analyze multiple facets of a stock, and free themselves from everyday hassles of data integration.

Further, PHI 1 provides pre-integrated data for all symbols including equity, indices, futures, and options.

This saves a lot of time and effort spent on data integration. The trader is also assured of accuracy of data and can use the saved time to spot opportunities in the market.

2. Sit Back & Relax While Your Tried-And-Tested Strategy Plays Itself Out:

PHI 1 allows traders to automate their trading strategy so they can sit back and relax. How? Traders can create any type of trading strategy with PHI 1, even if it is just an arbitrary idea.

Unlike most other platforms, PHI 1 allows the creation of custom strategies outside of templates. PHI 1 offers several testing options as well.

With PHI 1’s Multi-symbol Strategy Creator, the built-in data allows traders to monitor multiple symbols/time intervals/asset classes in a strategy to make trading decisions on one or more of them.

Traders can, thus, create, test, and analyze multiple symbols/instruments with minimal effort. Traders can come up with innovative strategies in just a matter of minutes.

These trading strategies once tested can be implemented automatically, preserving discipline and eliminating emotional biases or impulsive decisions. Once finalized, the system will execute orders as per the strategy.

3. It’s On The Cloud!

PHI 1 is a cloud-based software. This means intraday traders do not have to go through the hassle of download or installation.

They can simply plug-n-play the software. Having everything—right from their data to saved strategies–ready can be a major relief for traders. All their data is also securely saved on the cloud.

4. Your Data Is Yours Only:

Your data such as strategies, trades, portfolio, and reports are encrypted and totally safe. Your data is only visible to you, which provides the added benefit of privacy and security.

5. Create Advanced Strategies Limitlessly:

PHI 1 offers an Advanced Strategy Creator which allows traders to create any type of strategy they can imagine of—no restrictions.

This gives scope to the trader to experiment more and more strategies and spot more trading opportunities.

What’s more, PHI 1 provides robust support via documentation. This includes comprehensive coding guidelines. Additionally, our support team is also there to assist you with coding strategies.

6. Backtesting Ability In Multiple Market Scenarios:

Very few tools are currently available for bulk backtesting, which is essential to determine scenarios where the strategy might underperform.

PHI 1 goes a step ahead to provide bulk backtesting along with auto-analysis of strategy performance. Thus, traders get a score on their strategies in a variety of market scenarios such as volatility, market crash, trending, and so on.

This minimizes the risk of trades, and the trader can choose the best strategy to execute whatever the scenario. The result: stress-free trading!

7. Experience The Ease Of Execution With Multi-Broker Integration:

PHI 1 comes with the benefit of multi-broker integration. This means a trader is free to select a broker of his/her choice from a list of available options. This also enables the trader to get the best rates while placing orders.

Moreover, even if one broker’s service is down or the trader does not have enough margin, they can always place trades through another broker. Never miss another opportunity again!

At the core of it all, perhaps, is PHI 1’s endeavour to ascertain ‘freedom’ to intraday traders.

The freedom—to pursue limitless strategies, to spot unlimited trading opportunities, and above all, to only focus on the real deal, and not everyday mundane tasks.

Imagine this – instead of spending every market day staring at your trading screen, you can spend your day trying out new and better strategies while your automated system executes your working strategy flawlessly without you doing anything. Well, with PHI 1, you do not have to imagine!

PHI 1 empowers traders throughout their trading journey via its all-in-one, powerful algo trading platform.

With the ease of use and the scope of scale that PHI 1 offers, it makes perfect sense to try PHI 1!

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5 Benefits of Algo Trading for Stock Traders

Algo trading or Algorithmic trading is an automated program that uses a set of defined instructions to execute a trade. Simply put, algorithmic trading is a set of directions for placing a trade.

Computerized algorithms process data faster, cheaper, and more accurately than humans. Algorithmic trading helps make robust trading decisions by efficiently processing data―precisely why it is becoming increasingly popular in India.

There are numerous advantages of algorithmic trading over manual trading. For instance, it saves the time needed for supervision and execution in manual trading. Algorithmic trading also helps traders benefit in measures of speed and accuracy.

Let us look at each of the advantages of algo trading in detail.

1.   It is incredibly fast

In algorithmic trading, algorithms are written beforehand so the instructions are executed automatically. The speed is so fast that it’d be nearly impossible for a human eye to spot it.

Multiple indicators can be scanned and executed in a jiffy! Thus, trades get analyzed and executed faster. Automated programs generate orders with profit targets and protective loss stops, all at once. This implies that traders and investors can swiftly book profits off small changes in price.

2. It allows you to place accurate trades

Unmatched accuracy is a key advantage offered by algorithmic trading. Manual trading has lots of space for committing errors in many aspects. However, with algo trading, the probability of mistakes is reduced drastically.

Accuracy is the decisive factor between a good trade and a bad one. In a computer algorithm, the trades get double-checked and any chances of error are eliminated, preventing things from going downhill and enhancing your probability of profiting from trades.

READ :   Top 5 Best Algo Trading Software in India 2021

3. It minimizes emotions to reduce risks to your trades

As is well-known, human emotions play an important role while trading. The human mind is vulnerable to getting carried away by emotions while making a trade, thus affecting the ability to make decisions based on logic.

Emotions like fear, hesitation, greed, indecision, and others can hinder one’s potential stick to one’s trading plans. However, algo trading takes out the emotion from trading. With automated trading, it is impossible to trade impulsively. Thus, algo trading makes trade more decisive for traders and implements orders without ‘second thoughts’.

4. It allows you to identify and prevent bad trades

It is manually impossible for a trader to know which strategy will work in a given situation. Backtesting allows traders to assess the viability of a trading strategy by showing how it would have worked on a set of historical data. If the backtesting works, traders may develop the confidence to deploy the same strategy in the future.

Thus, backtesting reduces the number of loss-making strategies, making way for the most productive strategies to be implemented.

5. It saves time and is cost-effective

Last but not least, algo trading is a cost-effective way to trade. Manual trading involves spending a lot of time behind the screen and investing a lot of energy constantly to identify trading opportunities. Continuous supervision is tiresome and causes the trader to miss out on opportunities.

Algo trading reduces this time investment and works just fine without hectic supervision. By being relieved of the mundane chores like data integration, traders can focus on exploring opportunities in the market and how to exploit them to their advantage.

Further to cutting down costs in terms of the time invested, algorithmic trading is particularly useful for large order sizes in terms of cost saving.

In addition to these benefits, trade rules get established in algo trading and are performed automatically; hence, one’s discipline stays intact even in volatile markets.

Algo trading solidifies discipline because the pre-defined instructions will be followed as they are. Moreover, algorithmic trading systems allow trading with multiple accounts or implementing various strategies simultaneously across a wide range of markets within seconds, thus diversifying your trades.

Algo trading makes trading convenient and unlocks your true potential as a trader. Algorithmic trading can be a great blessing if done using the right platform.

This is where PHI 1 comes in.

With its easy-to-use intuitive interface and advanced features, PHI 1 provides an end-to-end solution for traders, helping them focus on trading, rather than on daily, mundane tasks associated with it.

Get the benefits of speed, accuracy, and reduced costs with PHI 1’s advanced screening, superior backtesting, advanced risk controls, multi-symbol strategy creator, and multi-broker integration.

No download, no installation, and no data integration required, saving your time! A lifetime free plan to paid plans with even more features, saving your money!

Get the best of algo trading and the ultimate freedom to unleash your trading superpowers with PHI 1.

PHI 1 – Setting you free

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