Algo Trading


Stock Market Blogs

Algorithmic vs Manual trading January 05 2021Algo Trading

Visit Count: 4630

Algorithmic vs Manual trading

We are living in the 21st century which is subtly dynamic and developing every single minute. Artificial Intelligence has taken over manual activities of human kind. This has a lot to do with trading reforms in the modern era. Manual trading is over taken by the so-called Algorithmic trading. Algo trading also known as automated trading system is a significant reason behind the increased discussion on Algo vs Manual trading.

There are Tons of Forex trading robots out there, and almost everyone claims that overnight they can turn small accounts into huge amount of money.

We are past the point of these ludicrous statements being believed. We shouldn't allow these EA scams to steal the authenticity of actual algorithmic trading systems. The reality is that it can work with automated trading. Highly optimized trading robots are used by many large investment firms to take money out of the market, so there is a way of making money using these robots.

?)???????- ??

Advantages of Algo trading

· It's literally the essence of making a robot trade for you. It is accurate, perfectly disciplined and makes no mistakes (if programmed correctly).

· The willingness to be patient and stick to the plan is one of the greatest issues trader’s face. You can be confident that the robot will be fully disciplined and adhere to the trading plan you set up by automated trading, also known as algorithmic trading. It is also the willingness to stick to the strategy that separates a profitable trader from an unprofitable trader.

· Not only can a robot adhere to the plan and be disciplined, but proper execution will always be performed by a robot. When it can take a sale, a robot will not take a purchase.

· The robot can not only trade with better discipline, better execution, and more range, but a robot is not tired either. The trading robot will be grinding away at the markets 24 hours a day as you pick the few hours that fit best for you. That's 3, 4, maybe 10 times the amount traded by a manual trader on the market.

Alright, alright. The human trader was sufficiently beaten up. It's time for him to strike back.

The only thing a human forex trader has is a brain that a robot doesn't. Where a robot can only perform decisions based on the situations programmed into it, all that is going on can be taken into account by a person and interpreted together.

Advantages of Manual trading.

· A human being can take into account fundamentals that happen unexpectedly (like a hurricane in Japan).

· An individual can see that the industry is moving uncomfortably slow or unreasonably volatile and take out his trades.

· A person can decide whether he has enough profit and when he feels the momentum can continue in his favour.

· A human being can get a sense of the market—he can get in the zone.

Examples Algo trading

Let us take example of a trader named Rahul who uses algorithms while executing trades.

Rahul uses moving averages as technical measures and only buys a company's stock if the 30-day moving average stock price goes above the 180-day moving average stock price and similarly sells the stock when the 30-day moving average stock price goes below the 180-day moving average price.

As a computer program, this requirement can easily be fed into software.

This Algo will only purchase a certain number of shares of the given company if the moving average of 30 days is greater than the moving average of 180 days. For Rahul, the programmed software will work, as he has specified the program's time, price and volume with the help of algorithm. Rahul does not need to keep track of the business opportunities and changes as the algorithm does for him.

Another simple example of Algo trading

Purchase 100,000 Apple (AAPL) shares if the price falls below 200. Buy 1,000 shares for every 0.1 per cent rise in price above 200. Offer 1,000 shares for every 0.1 per cent drop in price below 200.

It is very common and extremely easy to implement moving average trading algorithms. The algorithm buys a stock if its current market price is below its average market price over a certain period of time and sells a stock if its market price is above its average market price for a certain period of time. Here we are considering a moving average trading algorithm of 20 days.

Apple Stock price vs 20-days moving average

The blue line on the graph indicates price and orange line indicates 20-days moving average.

If the current market price is less than the 20-day moving average, the algorithm buys shares of  Apple (AAPL) and sells Apple shares if the current market price is more than the 20-day moving average. The green arrow suggests a point in time where shares would have been purchased by the algorithm, and the red arrow reveals a point in time when shares would have been sold by this algorithm.

Lets look for an example of Manual trading

Mike is a trend based trader. He searches for openings around the 100-day moving average (MA) to enter strongly trending stocks, and then uses the 100-day MA for his exit as well.

As there is some subjectivity involved when he joins a deal, this includes manual trading. Subjectivity does not translate so well into an automated program.

Mike for instance, always likes to see a rising stock fall below the 100-day MA, but only marginally, and then rise back above the long trade trigger. If he's in the market, when the price crosses back below the 100-day price, he leaves.

Blog Enquiry

Prevent Unauthorized Transactions in your demat and trading account --> Update your Mobile Number/Email id with your Depository Participant and Stock Broker. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat/trading account directly from CDSL and Stock Exchanges on the same day.........issued in the interest of investors...

1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

2. Update your Mobile Number & Email Id with your Stock Broker/ Depository Participant and receive OTP directly from Depository on your Email Id and/ or Mobile Number to create pledge.

3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued by NSE vide. Circular No. NSE/INSP/45191 dated: July 31, 2020 and NSE/INSP/45534 and BSE vide Notice No. 20200731-7, dated: July 31, 2020 and 20200831- 45 dated: August 31, 2020 and dated: August 31, 2020 and other guidelines issued from time to time in this regard.

5. Check your Securities/ MF/ Bonds in the Consolidated Account Statement issued by NSDL/ CDSL every month.


  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to ₹ 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost

Dear Investor,
As you are aware, under the rapidly evolving dynamics of financial markets, it is crucial for investors to remain updated and well-informed about various aspects of investing in securities market. In this connection, please find a link to the BSE Investor Protection Fund website where you will find some useful educative material in the form of text and videos, so as to become an informed investor.
We believe that an educated investor is a protected investor !!!

"As per the directives of CDSL and esteemed Exchanges, it has been made mandatory for every client to furnish their latest KYC details viz. Valid Mobile No., Email- Id & Income range on or before 31.05.2021 else your Account will be marked as Non Compliant and will be Freezed till the compliance of such requirement."
"No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorize your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."
"KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary."
Dear Investor if you wish to revoke your un-executed eDis mandate, please mail us with ISIN and quantity on by today EOD."

INDIRA SECURITIES PVT.LTD. (SEBI REG.NO.):NSE TMID: 12866, BSE TMID: 663, CDSL DPID: 17000 SEBI REG. NO.: INZ000188930, MCX TM ID: 56470, NCDEX TM ID: 01277, CDSL REG. NO.: IN-DP-90-2015, CIN : U67120MH1996PTC160201




Indrendu Joshi. Email: Call : 0731-4797275

Investor grievance complaint :