What is Tradetron?
Tradetron is a cloud-based algo strategy marketplace that helps you completely automate and create your algo trading strategies without any coding. As it is cloud-native, it does not require downloading any software. Tradetron provides you with endless opportunities to take the benefit of automation.
Tradetron is a multi-asset class, multi-exchanges, and multi-currencies algo trading marketplace with multiple communication methods for your usage convenience.
Features of Tradetron
Let’s take a look at some of the unique features of Tradetron.
- Trading Engine: Empowers you to create your algo trading strategies and fully automate your strategies. The platform provides you with hundreds of keywords at your disposal to set various conditions to create strategy rules. Special bots are assigned to take care of your strategies as and when the set conditions are satisfied.
- Strategy Building Wizard: It allows you to build a wide range of algorithmic trading strategies without a single bit of code. Data streaming and download of software are not required.
- Social Trading: It allows you to access hundreds of algo trading strategies for free. You are not only allowed to subscribe to strategies created by top traders but also can amend them as per your use case. You can use powerful filtering tools to search for a strategy that suits your trading style. Real-time replication of trading strategies makes it more convenient for first-time traders.
- Backtesting Engine: It allows you to backtest your algo trading strategies on the past data. The platform has a huge amount of historical data at your disposal.
How to integrate Tradetron with TradeSmart?
- Login to Swing Web App with your TradeSmart Client ID and Password.
- Click on "Create New App" present on the hamburger menu.
- Enter the App name and App Description of your choice for your reference and Submit.
- Once you create the app, you will receive the App Id, App Secret & Password (to be used as application token).Please save these details to enter them on the tradeTron platform. Please note: The App secret key and the pass key will be shown to you only once. In case you lose it, please generate a new app.
- Now, Sign In (Login with existing credential) to your Tradetron account or Sign up (Create a new A/c).
- Click on the user (your name) on the top right corner.
- Select Broker & Exchange Option
- Change the default settings of "Paper Trading" and "TT-PaperTrading" as Broker
- Click on Add Broker
- Select Broker – TradeSmart. Once you select TradeSmart as a Broker Name you will get following fields – App id , User Id, Password & Key. Please copy the values from Swing web app and add them here and save.
- TradeSmart will be added as broker on your TradeTron account.
How can I build my Algo Trading strategy on TradeTron app through TradeSmart?
It’s easy to build algo trading strategies. After adding TradeSmart as broker on TradeTron app, follow these simple steps:
- Log on to Algo Trading strategies – TradeTron
- Go to the strategies tab and click on the ‘create’ tab in the dropdown.
- Give a name to strategy and select the tags (Support Resistance, intraday, Ratio spreads, etc.)
- Set your strategy rules. Set entry and exit rules by adding conditions and positions.
- Make advanced settings by setting initiation price, tranch size, etc.
- Enter marketplace settings
- Once all the strategy rules are set, click on create.
- Now that you have created a strategy, the conditions get configured in the platform. As and when the strategy conditions are fulfilled, TradeSmart’s API is invoked through a cloud- based execution process to place the trade orders.
Benefits of opening an algo trading account with TradeSmart
- Best-in-class trading APIs for algo trading in India.
- Accurate and instant trade order placement with a facility to trade in multiple products and markets.
- An innovative and tech-savvy trading system provides convenience for you to trade from anywhere.
- Execution of trade at low cost as Tradesmart offers the lowest brokerage trading in India
Algo trading uses computer-based programs to execute trade orders by following a specified set of instructions or algorithms. As everything is automated, algo trading is speedier than manual trading. A set of rules can be defined for various parameters such as quantity, time, price, or any technical indicator. Algo trading gives no room for human errors. Let’s take an example to understand how algorithmic trading works.
Let’s say your trade is based on some simple criteria or technical indicators, such as:
- Buy 100 shares of a stock, when its 50-days moving average goes above the 200-days moving average (indication of an upward trend).
- Buy 100 shares of a stock, when its 50 days moving average goes below the 200-days moving average (indication of a downward trend).
Now, a computer program can easily execute the buy and sell orders when the specified conditions are fulfilled, which requires no manual monitoring of prices and trends.
Yes. Algorithmic trading is legal in India. Regulatory body, Securities and Exchange Board of India (SEBI) has allowed algo trading in India in 2008. Since then, many stockbrokers and online brokers have allowed algo trading for retail traders on their platform. Nearly 50% of trades in India are algorithmic. Nearly 70% of the total trade in developed markets is algorithmic.
No trading method is completely safe, there is a certain degree of risk. However, like manual trading, algo trading is also regulated by the Securities and Exchange Board of India (SEBI) which has laid down strict guidelines for algo trading in India. Specifically, after the National Stock Exchange (NSE) gave unfair and preferential access to few brokers for algo trading, SEBI has tightened the guidelines for algo trading in India. Due to the speed, high volume and real-time reactions, algorithmic-driven trading can make the market more liquid and volatile. Algo trading poses systemic risk. As it is algorithm-based, there are possibilities of faulty execution, programming related risks, etc can hamper the trade. However, the backtesting feature can be a simple solution to this problem. System errors can result in a loss in trading within a very short timeframe. However, SEBI has taken many measures to strengthen algorithmic trading. One such measure is SEBI’s advice for stock exchanges to put in place economic disincentives for a high daily order-to-trade ratio of algo trading.
Margin trading gives you the power of leverage. You can initiate trade by paying the margin (marginal amount of actual trade value). You are allowed to create positions under the margin trading with cash or by furnishing shares as security with broker to trade margin in algo trading.. You will have an option to pledge your shares with the broker and then un-pledge after the trade gets squared off.
Algo trading platform offers you the flexibility to manage any type of trade order in any market with a wide range of algorithms available. The limit order option allows you to buy or sell a stock at a price set by you or at a better price. In Tradetron, you have ‘advanced settings’ to set the limit order trading rules under the ‘price execution’ tab while creating an algo trading strategy. You can also use the ‘repair once’ condition to place large limit orders.
A trailing stop-loss order is a type of day trading order that allows you to adjust the stop price by a certain fixed percentage with the change of security price. This strategy helps you to lock in profits while guarding you against day trading losses. To create a trailing stop loss strategy in an algo trading on the Tradetron platform, you can use ‘advanced settings ’ to set the strategy rules. You can use the ‘trailing stop loss’ feature in ‘advanced settings ’ to set the conditions. In this after a certain amount of profit you can activate trailing stop loss.