Quant Opinion: Algo-Trading for Retail in India??
Are retail investors allowed to do Algo-Trading or is it illegal. or has any one even approached NSE/MCX for approval. Is it viable for Sharekhan/ICICI Direct etc. to offer Algo Trading platform for retail market? Please give your views. It is approved in Developed markets btw. So have we still not developed yet??
It is allowed right from 2008. You can search in sebi website for this.
Thanks for clarifying..could not find much in SEBI website; however, if that is the case, why are there no Retail Brokers providing Web based platform to do Algo-Trading. what are the challaneges they are facing ?
When a layman does not know much about stock market or a fair knowledge of trading how can u expect that he will know about a word called algo trading. If he is not knowing ,means there is no demand. When there is no or less demand why the broker will take the extra pain and pay extra money to provide such facility. Basically it is a lack of awareness even on the broker side also.
This exactly was the case in US some years back..but now there are many platforms like esignal, amibrokers, IB etc. offering Algo-Trading to retail market..call me optimistic, but i do believe within sometime, some big retail brokers will take the initiative.
I agree with you on this point. But things will take there own time. Algo trading requires very good amount of liquidity in the market which as of now less seen in indian market(apart from few instruments like nifty fut).
IB i believe already provides an interface for automated trading in India. IB also has a amibroker plugin to connect to it. So one can design a strategy in Amibroker.
Another point over which Imran mentioned is barring Index futures and some other stock futures liquidity at times becomes a issue for auto trading
Gentlemen, may I use this thread to ask about index futures / options historical trades tick data? What
I dont think retail is allowed yet.
The DMA facility is only for institutional investors.
ODIN IOB providing you Algo trading which is very costly to effort to broker
DMA and algo trading is different things DMA for INST or for order which are coming to Indian Market from outside the India but algo is computer generated order
We already have a platform for Retail/Ultra HNI looking to do Algo trading. We are on the look out for a large retail Broker who has a base and is ready to take an initiative on this. We can get the approval from the Exchanges. Visit our website for more info www.symphonyfintech.com or contact me at +91 022-66903131 Ext-162
Currently, algo trading facilities are being offered by some vendors (Omnesys, Odin, Tcs, Greek etc) mainly in the Arbitrage area and many brokers are using this for their prop desks. I have not really heard of any strategy based algos being worked. Even there, only some simple strategy based ones are being thought of (MA crossover etc).