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Best Algorithm Trading Software in India – Meaning, Features, and More

An algorithm trading software is an automated system to trade on the stock markets. These systems allow traders to set up entry and exit strategies that are automatically executed when the criteria are met. These strategies may be based on various parameters, such as price, volume, moving average, and others.

An algorithm uses stepwise instructions to complete the defined tasks. Algorithm-based trading uses computer programs that adhere to a certain set of instructions to place an order. The primary objective is to identify potential opportunities to earn profits.

Several companies offer algorithm trading software. Here is a table showing some of the leading companies that provide reliable automated trading capabilities:

 

mastertrust

Zerodha

Motilal Oswal

5paisa

Advanced charting

10 types with 75+ in-built indicators

More than 100 indicators

Exceeds 40 indicators

Multiple types for an in-depth review of stocks

Customization

Yes

Yes

Yes

Yes

Reports

Consolidated position or customize according to different parameters

Multiple report types

Multiple report types

Multiple report types

Order types

Multiple types like stop-loss, limit, and cover

Multiple types like stop-loss, limit, and cover

Multiple types like stop-loss, limit, and cover

Multiple types like stop-loss, limit, and cover

Fund transfer

Yes

Yes

Yes

Yes

Historical data

Yes

Yes

Yes

Yes

Real-time data

Yes

Yes

Yes

Yes

 

As seen from the above table, most companies offer similar features for algo-trading software.

However, while choosing the best trading software, here are three features you must consider for making an informed decision:

1. Availability of market and company data

Most trading software programs work on real-time availability of market data and price. Some may be customized for additional fundamental data, such as PE ratio or EPS. A reliable algorithm trading software should offer market as well as company data in real-time to allow you to make timely decisions. This feature should be in-built into the system to avoid delays.

2. Multiple market connectivity

Often, you may invest in various markets, such as the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The chosen trading software should be able to provide data from multiple exchanges. Typically, this is required if you are looking for arbitrage opportunities to make profits through equity trading.

3. Latency

This is one of the most important factors you need to consider while choosing algorithm-based trading software. Latency is defined as the time delay caused by the movement of data from one application to another. In the dynamic world, prices change in nanoseconds and any time delay may have severe consequences. Therefore, you must choose software that has the lowest latency to ensure you receive the accurate and updated information.

Most algorithm-based trading software offers an in-built set of instructions. However, you may want to customize your trades, charts, and reports to suit your investment objectives. If the chosen software does not offer such customization, it may limit your trading goals. Therefore, it is recommended you check the availability of customization before opting for the software.

For making an informed decision, you may read the reviews, feedback, and comments offered by other users. This information is easily available online and it is recommended you take the time to research different options before making your choice.

 

 

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