Algo Trading

SBT - Strategy Based Algorithm Trading

Professional Trading strategies for wealth creation with real time monitoring.

SBT Managed Futures- Key Highlights

SBT Managed futures are pre-packaged algo based trading ideal for trades who are looking to generate extraordinary returns with minimal risk

Details about SBT Managed Futures

The proprietary strategies are developed by our fund managers by extensive research and back testing and the same strategy is programmed order to generate profits at a speed and frequency that is impossible for a human trader.

More details of Strategy

We use our in house propriety strategy based on Super-trend ,Volumes and crossover modified ,developed and adapted to meet the Indian Markets.

Overview of the strategy used

We use a trend following indicator similar to moving averages. It is plotted on price and the current trend can simply be determined by its placement vis-a-vis price. It is a very simple indicator and is constructed with the help of just two parameters- period and multiplier.

When we construct Supertrend indicator, the default parameters are 10 for Average True Range (ATR) and 3 for its multiplier. The average true range (ATR) plays a key role in ‘Supertrend’ as the indicator uses ATR to compute its value and it signals the degree of price volatility.

How buy and sell Signal are generated in our Strategy.

When we construct Supertrend indicator, the default parameters are 10 for Average True Range (ATR) and 3 for its multiplier. The average true range (ATR) plays a key role in ‘SA buy signal is generated when the Supertrend closes below the price and the color changes to green. On the other hand, a sell signal is made when the Supertrend closes above the price and the color of Supertrend turns red.

This strategy basically comprises of Supertrend and 5-20 EMA crossover. When the Supertrend turns green (i.e. Supertrend is below the price) and 5 EMA is above 20 EMA, a buy signal is generated. Similarly, when the Supertrend turns red (i.e. Supertrend is above the price) and 20 EMA is above 5 EMA, a sell signal is generated.

The below is the chart of Nifty. The buy signals are shown with the help of green arrows and the sell signal is shown with the help of red arrows. As you can see in the chart that you can really catch big moves based on this strategy and keep trailing your stop loss with the help of Supertrend to protect your profits.

How buy and sell Signal are generated in our Strategy.

Human Emotions = 0

Machines do not have emotions (at least not yet, good luck google!) and we can use that to our advantage. In manual trading this is a huge detriment. Fear and greed prevent us from doing what is right. Machines don’t cloud their decisions based on any external factors as they just follow what’s written in the program. When We realise that majority of trades in the market aren’t driven by emotions, it automatically puts We on a back foot making Algorithmic Trading a necessity. Our strategy truly gets a fair chance when We drop emotions out of the equation.

Accuracy + Speed = 100

Machines are accurate every single time when it comes to dealing with operational things in trading. For example, filling in the correct order details, I have found myself making silly mistakes in this department many times. I am pretty sure everyone has done this at least once in their trading life. Our inefficiency with respect to speed and accuracy can cost us huge opportunities. Even a skilled trader will take at least 10-15 secs to place an order, in the age of machine trading 10-15 secs is an eternity and the price can move significantly. This is true especially in terms of HFT trading. The computer will have placed and closed 100s of orders in that time frame.

Comfort = 1000%

Just imagine not having to go through that stressful roller-coaster ride every single day. This alone is more than enough reason for We to start learning Algorithmic Trading. After all, the stress part wasn’t mentioned when they sold We trading as a profession, so why deal with it now? Trust me it is an awesome feeling.

Scalability = level 100

Given the vast amount of computing power available today, we can run multiple strategies which can scan thousands of signals for trade opportunities, all at once. This is not possible for humans by any means.

Technology Architect

We used following technology Architect setup to connect our strategy to your trading account for seamlessly execution of trades in fraction of seconds.

Admin Console: To monitor strategies. To monitor,control RiskManagement ,Authentication etc.

Dashboard: To monitor,control strategies, Manual Order Entry etc.

Strategy Agent (Multiple instance can be run): Each instance can run multiple strategies.

Reports includes a BIRT-based Reporting engine and custom-reports

RMS Compliance Module: A web-service that can plug in to your algos to seamlessly comply with SEBI/NSE/BSE/MCX algo-approval requirements

Order Management System (OMS): OMS includes an Order Routing System for accepting orders from external providers and routes them to multiple exchanges, persistence layer backed by a database and authentication on.

Broadcast Data Feeders (BDF)

These components receive live market data from NSE/MCX/BSE, decrypt and convert data to a uniform format and rebroadcast the data for internalconsumption within the organization.

TBT Data Feeders

Feeders receive live Tick-By-Tick market data from NSE, converts and rebroadcasts the data for internal consumption. Has built-in features to recover from transient network-failures.

Recorded Data Feeders (RDF)

This consists of a 'recorder' to record live broadcast data from MCX/ NSE/BSE and a 'player' to play back the recorded data under different modes in an uniform format

DLLs for AmiBroker connectivity

To route orders to NSE/MCX/BSE

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