July 31, 2023 The Calmar ratio is a gauge of the performance of your strategy. It is a function of the fund’s average compounded annual rate of return versus its maximum drawdown.
Statistically, Calmar Ratio = Net P&L/Max Drawdown
The higher the Calmar ratio the better with anything over 0.50 is considered to be good. A Calmar ratio of 3.0 to 5.0 is really good.
A drawdown refers to how much an investment or trading account is down from the peak before it recovers back to the peak
Max Time to Recover → Returns the maximum time to recover from a drawdown
Clicking on this button, from your backtesting results page, would fetch the entire execution summary – basically a trade book of sorts with all the details of that each respective trade that has been executed over the entire backtesting tenure.
To put it simply, Option Greeks are mathematical computations that can give important indications that can be used to gauge different factors that affect the price of an options contract.
Understanding Option Greeks helps you make more informed decisions about which options contracts to consider for trading, and when to trade them.
An Options chain or an Options Matrix is a tabular collection of all available options contracts of a given underlying. Both Put and Call options of different Strike Prices are showcased along with information about parameters such as: contract expiry, options premium, volume, open interest etc. One At the money (ATM) strike contract is highlighted by default and appears at the centre of the table while all OTM & ITM strikes are separately marked in 2 different colors.
It is a contract-wise expected payout of the derivatives contracts that you’re dealing in, based on your entry price for the respective contracts.The P&L table, just like the payoff graph is interactive and gets updated if you modify the target spot, target date or the Implied Volatility of your desired derivatives contract. The modification happens based on the probabilistic price of the derivatives contract based on changed inputs and calculated how much profit/loss your strategy would generate in that scenario.
The basic payoff graphs depict what option will be worth at the expiration date only. However, you will often see another line inside payoff charts that is usually smooth and referred to as the Theoretical P&L. This theoretical line graphs what the option is worth at a custom target date (Which could be any date before expiry) and is calculated from a theoretical pricing model, such as Black and Scholes or Binomial Model. Given the time to expiration, the graph will show how your P&L will change “today” should you have this position vs the axis graphed; usually the underlying price.
The basic payoff graphs depict what option will be worth at the expiration date only. However, you will often see another line inside payoff charts that is usually smooth and referred to as the Theoretical P&L. This theoretical line graphs what the option is worth at a custom target date (Which could be any date before expiry) and is calculated from a theoretical pricing model, such as Black and Scholes or Binomial Model. Given the time to expiration, the graph will show how your P&L will change “today” should you have this position vs the axis graphed; usually the underlying price.
The basic payoff graphs depict what option will be worth at the expiration date only. However, you will often see another line inside payoff charts that is usually smooth and referred to as the Theoretical P&L. As can be seen by the Blue Line on uTrade’s Payoff Curve.
This theoretical line graphs what the option is worth at a custom target date (Which could be any date before expiry) and is calculated from a theoretical pricing model, such as Black and Scholes or Binomial Model. Given the time to expiration, the graph will show how your P&L will change “today” should you have this position vs the axis graphed; usually the underlying price.
The term "Theta decay" refers to the gradual erosion of the time value of an options contract as it approaches its expiration date. It measures how much the option's value decreases as time passes, assuming all other factors remain constant.
Read more → https://utradealgos.com/blog/what-are-options-greeks/
The price of options, also known as the option premium, is influenced by several key factors. Here are the main factors:
- Underlying Asset Price
- Strike Price
- Time to Expiration
- Volatility
- Interest Rates
- Dividends
In-the-Money (ITM): If the market price of the underlying asset is:
- lower than the strike price, the put option is in-the-money.
- Higher than the strike price, the call option is in-the-money.
In-the-Money signifies that the intrinsic value of the options contract is positive, that is if the contract is exercised right now, it will yield a positive payout barring the options premium.
At-the-Money (ATM): When the market price of the underlying asset is approximately equal to the strike price.
Out-of-the-Money (OTM): If the market price of the underlying is:
- Higher than the strike price, the put option is out-of-money.
- Lower than the strike price, the call option is out-of-money.
Out-the-Money signifies that the intrinsic value of the options contract is negative, that is if the contract is exercised right now, it will yield a negative payout.
Net Options Premium refers to the total amount of premium received or paid for a combination of options positions. It represents the overall monetary value of options premiums associated with multiple options contracts in each strategy or portfolio.
To calculate the net options premium, follow these steps:
- Determine Individual Premiums
- Multiply Premium by Contract Quantity
- Add Up Individual Premiums
- Calculate Net Options Premium
For example, let us say you sold two call options with a premium of Rs.3 each, sold one put option with a premium of Rs.2, and bought three put options with a premium of Rs.1 each. The calculation of the net options premium would be:
(2 * 3) + (-2) + (3 * -1) = 6 - 2 - 3 = 1
In this case, the net options premium would be Rs.1, indicating that the overall premium received for the combination of options positions is Rs.1.
Strike Price: The strike price is the predetermined price at which the underlying asset can be bought or sold. The relationship between the strike price and the current market price of the underlying asset influences the option premium. In general, as the strike price gets closer to the current market price (for call options) or moves further away (for put options), the option premium tends to increase.
The term "Expiry Date" refers to the date on which an options contract becomes invalid or expires. It is the last day on which the option holder can exercise their right to buy or sell the underlying asset at the specified strike price. After the expiry date, the option ceases to exist, and its terms no longer apply.
Latency is how much time you are losing out when you are sending out an order. Basically, it is the time taken by the order to reach the trading destination or exchange, how much time it is taking to process market data, order routing and much more.
Break Even point is that price point of the underlying at which your strategy would yield a scenario of no profit no loss - hence breakeven. Good thing that uTrade Algos comes equipped with a powerful payoff graph which gives you vital information such as the breakeven point (s), Maximum P&L, margin required and much more !
Know more about it -
Payoff curve details: https://utradealgos.com/features/payoff-graph/
Video Tutorial: https://www.youtube.com/watch?v=EzqgTkgfwsI
Mark-to-market (MTM) is an accounting process used to calculate the value of an asset or position based on its current market price. It is commonly used in trading and investing to determine the unrealized gains or losses on open positions. This process helps traders and investors understand their current profitability or potential risks associated with open positions.
The calculation of MTM involves the following steps:
Initial Position: When you open a position, its value is initially recorded based on the purchase price or the prevailing market price at the time of entry.
Market Price Update: As the market price of the asset or position changes, the MTM calculation reflects the updated value. This is typically done daily or as frequently as required.
Unrealized Gain or Loss: The difference between the initial value and the updated market value represents the unrealized gain or loss on the position. If the market value is higher than the initial value, it indicates an unrealized gain, while a lower market value indicates an unrealized loss.
Margin Adjustments: The MTM calculation also affects margin requirements. If there is a significant change in the market value and it impacts the margin requirement.
Account Balance Adjustments: The unrealized gains or losses from MTM are typically reflected in your trading account balance. Positive gains may increase the account balance, while losses may decrease it.
It's important to note that MTM reflects unrealized gains or losses, meaning they are not realized until the position is closed. Once the position is closed, the final realized gain or loss is determined.
For predefined strategies, called uTrade Originals - margin is mentioned on the strategy card.
Strategies created through advance order form- have a button of margin calculator. So you can directly check through that.
If you are unable to meet the margin requirements while algo trading, it can have several consequences:
Margin Calls: When your account falls below the required margin level, Share India issues a margin call. A margin call typically requires you to deposit additional funds into your trading account to restore it to the required margin level. Failure to meet the margin call may result in further actions.
Liquidation of Positions: If you fail to meet the margin call, Share India has the right to liquidate your positions to cover the margin shortfall. This means your open positions can be forcibly closed, potentially resulting in losses.
Account Suspension: In some cases, if you consistently fail to meet margin requirements, Share India has all the rights to suspend or restrict your trading account. This is done to manage the risks associated with insufficient funds and protect both you and the broker.
Legal Consequences: Failure to meet margin obligations can lead to legal implications, depending on the jurisdiction and the terms and conditions agreed upon.
To avoid these situations, it's crucial to closely monitor your account balance, margin requirements, and available funds. Proper risk management, maintaining adequate capital, and having a solid trading strategy can help you meet your margin obligations and mitigate potential financial risks while algo trading. If you anticipate difficulty in meeting margin requirements.
The margins may be paid either in the form of Cash (or cash equivalent) or Non-cash Securities:
Cash or Cash Equivalent
- SEBI allows investors to deposit margins in the form of Cash (by transferring money from investors’ bank account to Share India’s bank account) or Cash Equivalents (that includes such Sovereign Gold Bonds, Govt. Securities, Treasury Bills and Liquid Mutual Funds etc. which have been approved for the purpose by the Clearing Corporation).
- A complete list of all the securities that are presently counted as Cash Equivalents is given in the enclosed file.
- In order to receive margin benefit against cash equivalent securities purchased by the clients, clients shall be required to pledge such securities in Share India’s favor by following pledge/re-pledge mechanism. (Note: appropriate training may also be provided w.r.t. pledge/re-pledge mechanism, if required);
- The margin benefit against such securities is passed on to the client after deduction of applicable haircut which is generally 10% in case of cash equivalent securities (e.g. against a cash securities’ value of say Rs. 1000/-, margin benefit of Rs. 900/- shall be passed on to the client, after completion of pledge process by the client);
- Share India may help clients in buying Treasury Bills (T-bills). The detailed process for the same along with applicable terms and conditions are available at the link: ……………………
- Share India may also help clients w.r.t. creation of FDRs against clients’ credit balance available with Share India, the interest for which shall be passed onto the clients after deduction of applicable TDS. The detailed process for the same along with applicable terms and conditions are available at the link: …………………… (Note: In case of FDRs, the clients shall be allowed to use the entire amount of his/her FDR/s for margin purposes);
Non-cash Securities
- Besides Cash Equivalent Securities, the clients are permitted to also deposit approved non-cash securities purchased or owned by them towards their applicable margin requirements (Non-cash securities includes such Equity Shares, Bonds and Non-liquid Mutual Fund Units etc. which have been approved for the purpose by the Clearing Corporation);
- A complete list of all the securities that are presently counted as approved non-cash securities is given in the enclosed file;
- In order to receive margin benefit against cash equivalent securities purchased by the clients, clients shall be required to pledge such securities in Share India’s favor by following pledge/re-pledge mechanism;
- The margin benefit against such securities is passed on to the client after deduction of applicable haircut as is mentioned against each security
You can submit a pledge request form. This form typically includes details such as the specific securities you wish to pledge, quantity, ISIN code, and any other necessary information. After receiving your pledge request, Share India will create a pledge on your behalf. This process involves freezing the pledged securities in your demat account, preventing their transfer or sale until the pledge is released.
Once the pledge is created, you can utilize the pledged securities' value for meeting your margin requirements. The value of the securities is considered as collateral, which helps cover your margin obligations.
No, you can only pledge 90% of all the securities held in your demat account.
Very Important: 50:50 rule
As per regulatory directives, the margin benefit available against non-cash securities cannot exceed total margin benefit available against Cash and Cash Equivalents.
Examples:
A. | Total Cash and Cash Equivalents | Rs. 100/- |
| Total haircut value of non-cash securities | Rs. 80/- |
| Total margin available to client for trading purposes | Rs. 180/- (Rs. 100/- + 80/-) |
| (In this case, client is eligible to receive full margin benefit of non- cash securities as higher margin benefit against cash and cash equivalents is available to him) |
|
|
|
|
B. | Total Cash and Cash Equivalents | Rs. 100/- |
| Total haircut value of non-cash securities | Rs. 150/- |
| Total margin available to client for trading purposes | Rs. 200/- (Rs. 100/- + 100/-) |
| (In this case, client shall be eligible to receive margin benefit of Rs. 100/- only against non- cash securities as the margin benefit available to him against cash and cash equivalents is Rs. 100/- only) |
|
|
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C. | Total Cash and Cash Equivalents | Rs. 0/- |
| Total haircut value of non-cash securities | Rs. 200/- |
| Total margin available to client for trading purposes | Rs. 0/- |
| (In this case, client shall not be eligible to receive any margin benefit against non-cash securities as the margin benefit available to him against cash and cash equivalents is Nil) |
|
Share India allows only 90% of your deposits towards margin obligation because; Share India aims to mitigate the risk of potential losses. Also, we require a certain buffer or cushion to maintain the margin level above the minimum required level. By limiting the utilization to 90% of deposits, we ensure that if market conditions change or the value of your positions fluctuates, the margin requirement can still be met without an immediate margin call.
Also, it is important to know that Regulatory bodies such as the Securities and Exchange Board of India (SEBI) set guidelines and regulations for margin trading, including limitations on the utilization of deposits. Share India, as a brokerage firm, needs to adhere to these regulations to maintain compliance and protect the interests of both traders and the overall market.
To upgrade your plan:
- Go to the My Profile section of the platform
- Click on upgrade Subscription
- Under any subscription that is higher tier than your currently active one – you’ll see an Upgrade button
- Click on the Upgrade button to move you to the selected plan.
- Your subsequent payments from the next billing cycle will get increased to the amount of the newly selected plan.
Here’s how the difference amount will be managed.
If you were initially on the ₹1000 plan and used it for 15 days, but now want to upgrade to ₹2500 plan:
Amount used in 15 days = (1000/30)x15 = ₹500.
Amount left = ₹500
Delta = 2500 – 500 = ₹2000. This amount will be charged to you as a one time payment while upgrading your subscription.
Post payment, the subscription and your account privileges will be upgraded real time.
Note- your subsequent payments would be bumped up to 2500 Rs which will be automatically deducted from your account every month.
To downgrade your plan:
- Go to the My Profile section of the platform
- Click on upgrade subscriptions
- Under any subscription that is a lower tier than your currently active one – you’ll see a subscribe button
- Click on the subscribe button to move you to the selected plan.
- Your subsequent payments from the next billing cycle will get reduced to the amount of the newly selected plan.
Note: Suppose you were on the 3000Rs. Per month plan and then downgraded to ₹1000 plan on the 10th day of the 30 day payment cycle. Your plan will be downgraded from this term’s end i.e. after the 30 days and from the next payment cycle your recurring payment would be lowered to 1000Rs/month and plan privileges would be downgraded.
If an ongoing subscription is cancelled, the change is effective from the next billing cycle onwards. So no subscription fee paid to uTrade Algos is refundable. If you feel you’ve been wrongly charged by us, please write to [email protected] and we’ll get back to you as soon as we can.
Happy Trading!
You are charged a monthly subscription fee based on the plan you have selected for uTrade Algos. This fee covers the cost of accessing our service and using our trading algorithms.
However, it’s important to note that you may also be subject to trading fees and government taxes associated with your trading activity. These fees and taxes are not charged by uTrade Algos, but rather by the broker.
Kindly drop an email at [email protected] with the details of the amount charged and a screenshot of the payment message, to enable us to investigate and reverse the charges. Be assured that our team will get to the bottom of the issue and fix it asap.
You’ll get notifications on your e-mail as well as a prompt on uTrade Algos.
Your Broker that you’ve linked with us, will as usual, charge you fees such as: brokerage, margin requirements, government charges and taxes, etc.
You will get this information under the Profile tab on the “My Profile” page.
All the plans by default are valid for a 30-day period. Post that you get a 5-day grace period to renew your plan in case auto-payment of recurring charges fails.
In case of any difficulties, please reach out to us at [email protected]
You will be able to see a list of past and present subscription transactions on the ‘My Profile’ Page, under the ‘Transaction History’ tab.
To upgrade your plan:
- Go to the My Profile section of the platform
- Click on upgrade subscription
- Under any subscription that is higher tier than your currently active one – you’ll see an Upgrade button
- Click on the Upgrade button to move you to the selected plan.
- Your subsequent payments from the next billing cycle will get increased to the amount of the newly selected plan.
Here’s how the difference amount will be managed.
If you were initially on the ₹1000 plan and used it for 15 days, but now want to upgrade to the ₹2500 plan:
The amount used in 15 days = (1000/30)x15 = ₹500.
Amount left = ₹500
Delta = 2500 – 500 = ₹2000. This amount will be charged to you as a one-time payment while upgrading your subscription.
Post payment, the subscription, and your account privileges will be upgraded in real-time.
Note- your subsequent payments would be bumped up to 2500 Rs which will be automatically deducted from your account every month.
To downgrade your plan:
- Go to the My Profile section of the platform
- Click on upgrade subscription
- Under any subscription that is a lower tier than your currently active one – you’ll see a Downgrade button
- Click on the downgrade button to move you to the selected plan.
- Your subsequent payments from the next billing cycle will get reduced to the amount of the newly selected plan.
Note: Suppose you were on the 3000Rs. Per month plan and then downgraded to ₹1000 plan on the 10th day of the 30 day payment cycle. Your plan will be downgraded from this term’s end i.e. after the 30 days and from the next payment cycle your recurring payment would be lowered to 1000Rs/month and plan privileges would be downgraded.
Your earnings or funds by default are managed by the broker platform as is the case with normal trading. You can withdraw funds by raising a request from the Share India platform either on the web platform or their mobile app and easily withdraw funds.
Post every successful payment / auto-renewal, you’ll automatically get an invoice on your registered email ID.
To access any particular invoice you can head on to the ‘My Profile’ page and under the ‘Transaction History’ tab access invoices corresponding to each successful transaction.
All the subscriptions on uTrade Algos are recurring in nature – meaning every month (or as per the frequency selected by you) the subscription amount is charged from your account.
To cancel your ongoing subscription:
- Go to the My Profile section of the platform
- Click on Manage subscriptions
- Under your currently active subscription, you’ll see an option to cancel your subscription
Post successful cancellation → your subsequent payments will not get deducted from your account and your account’s privileges would stay valid until the end of the current subscription term.
No, if you’ve any ongoing subscription with uTrade Algos – you’ll be able to subscribe and deploy the pre-built algos in the live market.
You won’t be able to change your active subscription’s billing cycle as the subscriptions are on a prepaid basis. However, if you upgrade an ongoing plan, the billing cycle now renews on the day of the upgrade hence changing your billing cycle.
Due to a technical issue or insufficient funds in the linked bank account if an auto-renewal attempt fails, you'll not only get text and email notifications of the same, but also our system would attempt renewal for a total of 5 days. Post this, your subscription would stand cancelled and your uTrade Algos account would lose its privileges.
If at any point you feel there has been a mistake from our side, please feel free to reach out to us at [email protected] or 18002030404
For subscriptions, there's a recurring payment deducted at the end of plan term. If any recurring payment fails, you'll get notifications to take the necessary action. Additionally our system would give you a grace period of 5 days and attempt auto-renewal. Even after this grace period if subscription is not renewed, then your subscription stands cancelled.
Any subsequent portfolio executions would be terminated, and you'll lose access to the strategies created by you. Fret not, post renewal your account would be restored along with all your data.
When you subscribe to uTrade Algos, your payment will be automatically charged for a certain period, depending on the option you choose (like monthly, quarterly, or semi-annually). After that time is over, your subscription will renew itself automatically. To enable this convenient automatic payment process, you can use either UPI or cards.
You can activate your subscription with utrade algos using the following payment methods:
- UPI - Simply mention your VPA (UPI ID) and accept the mandate request on your payment app
- Cards - Select 'Stripe' as the payment option. Enter your credit card details and complete the payment process.
- Mention your VPA (UPI ID): Provide your Virtual Payment Address (VPA) or UPI ID to uTrade Algos.
- Approve the mandate: Authorize uTrade Algos to automatically deduct the chosen subscription amount from your account at the end of the subscription term.
By completing these steps, your payments will be handled automatically, ensuring a seamless subscription experience with uTrade Algos.
Yes, you can use both debit and credit cards
Sure, to get the subscription you want on uTrade Algos, follow these simple steps:
- Choose the subscription plan that suits you best.
- Select Stripe as your payment option.
- Enter your card details in the provided space.
- Complete the payment process.
By following these steps, you'll be all set up with your desired subscription on uTrade Algos!
For an ongoing subscription you can't change your payment method. We suggest reaching out to out support team at 18002030404 and we'll assist you with any requirements you may have.
You can choose from a range of multiple plans available on uTrade Algos website. With the help of fixed subscription charges, you get access to unlimited algo trading. For further details please check out the link https://utradealgos.com/pricing/
The best subscription available at uTrade Algos Platform is Expert where you can get a relationship manager to enable you to customize your strategies, help you out with every step of the way. Head on to our pricing page to know more- https://utradealgos.com/pricing/
No. of strategies deployment is totally dependent on the plan you subscribe:
Free plan- 2
Beginner- 2
Pro- 4
Wizard- 6
Expert- 10
Option strategies are the simultaneous, buying or selling of one or more options/ futures contracts that differ in one or more of the variables such as: strike price, expiry, option types etc., to hedge a position, benefit from arbitrage, or to profit from a spread widening or tightening.
Up to 5 legs can be added in a single strategy.
Each Portfolio can consist of upto 5 strategies. Each strategy in turn can hold upto 6 order legs. To know more, kindly check out –
Traders can create and bundle-up different strategies in one portfolio. Under My Portfolio section – all the different portfolios created by the trader are listed on this page along with snapshots of their performance.My Portfolio page will appear when clicked on My Portfolio through the header tabs. The purpose is to list down all the Created, Subscribed, Deployed, and Bookmarked portfolios in one place for tracking and accessing.
A paused strategy appears under ” My strategies ” tab and while all its conditions and other information stays intact, the strategy will not be considered for deployment on its own by our strategy engine irrespective of whether the conditions are met or not. The user may re-deploy it by clicking the deploy button after which the strategy will be running and function as an active strategy.
A leg can be understood as one step of a strategy (which is a combination of multiple steps). Traders often use multi leg strategies in derivatives contracts when a complex strategy can be deployed to reap benefits despite less confidence in Trend Directions One important thing to keep in mind while implementing Multi leg strategies is the robustness of the Trading Engine and reliability of price execution. Lucky for uTrade Algos users that they can leave the execution part on our Advanced trading engine and focus their energy on creating a market-winning strategy for themselves!
Users get risk management Parameters such as: Target Profit, Stop Loss, Trail SL, and execution time for the portfolio to keep running.Upon successful meeting of any of the user-defined conditions the strategy is exited.
This option redirects to the Pay-Off curve page where the user can change pay-off for the whole portfolio. For more details on Payoff Curve please check out
Tags are alphanumeric values for the portfolio that can be used to search and categorize a Portfolio. Some examples are:
- Positional
- Directional
- Positive Theta
- Negative Theta
- Reversal
While you can create any number of strategies, deploying a strategy means running it i.e., if and when the entry exit parameters satisfy – the legs would be executed in the live market.
If the conditions for any of the legs of a strategy have not been met, its order status shall show pending and won’t get executed until conditions meet. By default the nature of all the order legs is Intraday so all open positions would get squared off automatically before the end of the trading day.
With uTrade Algos’ Advanced Strategy form supporting up to 6 legs under each strategy, you can create almost all Derivatives strategies that there are!
Some Popular options strategies you can create are:
Bull/ Bear Call Spread
Bull/ Bear Put Spread
Straddle & Strangles
Long/short Butterfly
Iron Condor
Long Calendar Spreads
Backspread
With custom modifications available the scope to create newer and newer strategies to beat the market is virtually limitless!
So keep experimenting, but remember: Create a Strategy Logic – Backtest – Forward Trade – Setup Risk Management – Deploy on Live Market – Continually Improve the strategies by analyzing the results generated at each step.
The expiry type option – helps you in selecting which expiry you want for the derivatives contract. The dropdown has 3 options – Weekly, Monthly and Basic
‘Monthly’ Expiry type → This Selects month starting from the current month and onwards
‘Weekly’ Expiry type -> This selects the weekly expiry from the current week and onwards
‘Basic’ -> using this you get a dropdown with all the available expiries for the selected cotract
A thing to note here is the expiry type and the expiry offset option (which basically defines the deviation from the current default value) work in sync with each other. Let’s say you select the ‘Monthly’ Expiry type → the expiry offset option would have the following options – (a.) Current month expiry (b.) Next months’s expiry, or (c.) Far month’s expiry
Similarly for ‘Weekly’ Exxpiry type, the offset values would be → Current, Next, Far, far +1, far + 2.
In this option, the user can select the strike prices as per the below options:
Strike/Price Selection Field
Where,
Strike – ATM: Provides an option to select the strike based on ATM and ATM +/- offset number. Based on the selection here, the strike options available in legs will be ATM + N where N is the ticker difference.
Example w.r.t NIFTY: (the ticket here being 50 points and ‘ATM’ being the strike closest to the current spot price in the market.
Strike – Basic:Provides options to select the strike from the list of all the Strike Prices available as per Option Chain.
Price:Input for premium price which further derives the strike price for the contract.
Login to uTrade Algos -> From your Dashboard, Click on the ‘Create Strategy’ button on the top right.
Here are a couple of resources to help you out:
- Blog – How to use uTrade’s Powerful strategy builder
- Video – Understanding uTrade Algos Order form
Go to Strategy ? ?Create? to create your strategy. See insert link to blog explaining order form for various tutorials on how you can start creating your unique strategy.
Whether you’re creating your own strategy using our powerful strategy builder or subscribing to a pre-defined strategy- the ‘Margin Required’ field tells you how much margin would be deducted from your brokerage account. To get an in depth idea about calculation and different types of margins – use our Margin Calculator feature.
Kindly check out this video to get an in depth explanation of our order form and its capabilities
Yes, you can edit a deployed strategy however, the running strategy won’t consider the changes made while the strategy is running. When you deploy the strategy again, the strategy will consider the modified details.We will soon be adding strategy modification feature where exit parameters of the running strategy can be changed.
Yes, if you wish that the information is retained when you next log in, it’s important to save a strategy/portfolio.
You can save a strategy inside a new portfolio or any existing portfolio as well. This gives you the freedom to manage your portfolios and manage risk effectively.
To learn more about this, check out →No code Strategy Builder | Advanced Order Form | uTrade Algos
All the strategies that you’ve created appear under the My Portfolio Tab. You could also filter them on the basis of their deployment status, whether they are custom strategies or not and so on.
As of yet, Options Instruments can be traded on uTrade Algos. We are continually working on adding different instrument types to uTrade Algos and you’d see equity along with technical indicator parameters soon on uTrade Algos!
If you’d like to stop a particular portfolio, you could go to My Portfolios → Deployed; and right on the strategy card you could see a stop portfolio button. Clicking on this would terminate all the subsequent strategy executions under the portfolio while letting the current open positions in the market run its course.
In a Panic situation, we recommend using the Panic button.
Getting Started
- Sign-up and Login to uTrade Algos
- Go to the Strategies Page and browse through some of our Pre-defined strategy forms developed over years of trading experience to perform optimally in different market conditions.
- Go through strategy parameters and understand its risk before subscribing
- Click on Subscribe.
- Go to My Strategies page and find the above strategy under Subscribed Strategies.
- Click on Deploy. Choose Forward Testing (trading in a simulated environment without risk of losing capital) to understand the working and performance of the deployed strategy
- Go track the strategy on the Deployed page
Congratulations on your first Algo-enabled strategy!
Creating your own strategy from scratch
Of Course if you wish to create your own strategy from scratch, it would require some market understanding and basic knowledge of trading and it will take longer, depending on how complex the strategy is.
To take baby steps, you can start off by duplicating a Pre-defined strategy, tweaking the conditions and making your own strategy.
While a strategy is a collection of different order legs, traders can create and bundle-up different strategies in one portfolio. Under My Portfolio section – all the different portfolios created by the trader are listed on this page along with snapshots of their performance.
With uTrade Algos you can create your own customized strategies by clicking on create strategy present on the home page and entering the parameters required. Once you are done with entering your desired parameters you can either deploy or save your strategy for the future.
Resources:
Video Tutorial - No code Strategy Builder | Advanced Order Form | uTrade Algos
User Manual - https://utradealgos.com/user-manual/create-portfolio/
On the nav bar you will get the ‘My Portfolios’ option. Herein you can create new portfolios, monitor exitsitng portfolios, edit/delete them, backtest them or deploy them in the live markets.
Resources:
Video Tutorial - No code Strategy Builder | Advanced Order Form | uTrade Algos
User Manual - https://utradealgos.com/user-manual/create-portfolio/
NSEFO is enabled at the moment which enables our users to trade with a wide variety of futures and options instruments.
The dashboard is a summarized view of how well your Portfolios are doing, with fields such as Total P&L, Margin Available, actively traded underlyings, Portfolio name and respective underlyings, etc. Use it to quickly gauge your strategy performance.
At the moment, only Share India is the supported Broker on uTrade Algos. While we may onboard other brokers, you can easily open a free demat account with Share India in less than 5 mins with only a couple of hours required for your account to get activated.
The reason for this being that we’ve integrated our product to work seamlessly with Share India’s intuitive platform, thus you’ll get a much superior experience if you could get on to the SISL Mobile app!
Open your account now :
At the moment we have Share India as a supported broker with us. While we may onboard other brokers soon, you can easily open a free demat account with Share India in less than 10 mins with only a couple of hours required for your account to get activated.
Also your uTrade account is seamlessly connected keeping in mind Share India’s web and mobile interface, hence we feel you wouldn’t want to miss out on this superior experience.
Open your account now :
Your strategy can get blocked in the following scenarios:
–> uTrade Originals Strategy – If the Admin of the strategy has stopped it due to adverse market conditions.
–> If your uTrade Algos subscription has expired, all your strategies will get blocked.
All the strategies that you’ve created appear under the My Portfolio Tab. You could also filter them on the basis of their deployment status, whether they are custom strategies or not and so on. You could easily edit the portfolios, backtest it and deploy them in Live or Forward Test market.
Basis the plan you’ve subscribed, you get some Backtest credits each day.
We have reliable historical data of upto 3 years for which you can backtest your strategies.
Pre-defined strategy forms are forms for various popular Options Strategies such as: Bull Call spread, Straddle, Strangle etc. which are pre-filled with all the necessary basic inputs to be able to execute that particular strategy. For example you select a ‘Bull Call Spread’ -> Now the form would factor in the fact that:
1. It’s a 2-legged strategy
2. One leg would involve buying an ATM call option, while the other would involve selling an OTM call Option
And thus, would come prefilled with this information. Now, isn’t this amazing!
We’ve incorporated a bunch of strategies so that you are equipped with a strategy in various market conditions.
Understanding that derivatives traders are used to the options chain, we decided to integrate this feature onto our platform and go a step further to introduce the ‘Add from option chain’ button both on to the order form and the Payoff curve tab.
You can click on this button and access the options chain for the selected underlying and then add or remove strategy legs with just a single click while also accessing the LTP and Open Interest data for all the available contracts for the selected underlying.
Note that any pre-filled information on the strategy form would be lost and replaced with inputs from the options chain.
We’ve incorporated a bunch of strategies so that you are equipped with a strategy in various market conditions. Some Popular options strategies you can create are:
- Bull/ Bear Call Spread
- Bull/ Bear Put Spread
- Straddle & Strangles
- Long/short Butterfly
- Iron Condor
- Straddle
- Strangle
and many more!
With custom modifications available the scope to create newer and newer strategies to beat the market is virtually limitless! So keep experimenting, but remember: Create a Strategy Logic → Backtest → Forward Test → Setup Risk Management → Deploy on Live Market.
Continually Improve the strategies by analyzing the results generated at each step.
We’re sorry to see you go!
Incase you were facing any issues: Please write to [email protected] and we’ll reach out to you soon!
If you’ve made up your mind to leave – Under Accounts section –> Settings –> Security – You may choose to close your account.
The multiplier feature is used to determine the Position Size. For example, if your strategy underlying is BANK NIFTY where the lot size is 40 units, selecting Multiplier as ‘2’ would mean each position would be for 2 lots of the underlying i.e. 2 x 40 = 80 units of NIFTY BANK in this case.
By default, the Multiplier value is 1 and could be set by the user to a higher value for each leg – as per their need.
Understanding that derivatives traders are used to the options chain, we decided to integrate this feature onto our platform and go a step further to introduce the ‘Add from option chain’ button both on to the order form and the Payoff curve tab.
No, we are an Algo Platform and not a strategy “marketplace” simply because we only showcase time-tested strategies by finance professionals to safeguard our users interests.
Subscribing or sharing strategies among market beginners might have catastrophic results.
- Go to your Profile
- Account Settings
- Change Password
NOTE: Incase you have forgotten your password, from the login page you can request for a password reset link.
A trading account is essential if you want to trade in the Live market as uTrade is just a layer over your broker which handles the Automation part of your strategy by accessing strategy parameters, checking their validity and generating buy/sell signals which are ultimately executed by your broker as is the case in Normal Trading.
You’ll get notifications on your Browser as well as push notifications on your mobile app for a seamless on-the go trading experience.
Download uTrade’s mobile app from Play store or App Store.
While you may create and save strategies or subscribe to premade strategies, the conditions for different legs don’t go to the live market unless you press the Deploy button. Thus Deployed Strategies are effectively those which are currently running or active in the Live or forward test market making profits/losses.
Not at all! While Professional traders get an edge using Technical Analysis, uTrade Algo users need not worry about learning Technical Analysis from scratch.
Even a complete novice in the markets can experience Algo Trading using are Pre-made strategy forms that lets you deploy complex options strategies with a single click.
Another interesting feature that uTrade Algos is bringing to the table is a set of pre-built algorithms curated by top-ranking industry experts who have seen the financial markets inside out. These algorithms, called uTrade Originals, will be available for subscribers on the platform.
Our mission is to make Algo trading easier, faster and accessible to all.
Happy Trading!
Different uTrade Originals Algos have different minimum capital requirements. Please make sure to check out the learn more section for each strategy card and then make an informed decision by accessing the risk and understanding the nature of the algo that you’re subscribing to.
While you can’t modify the underlying logic of the pre-built algo, you could still choose to pause or stop its execution anytime.
No, uTrade Algos is a no code algo builder but not an Algo marketplace. Simply because we only showcase time-tested strategies by finance professionals to safeguard our users interests.
Subscribing or sharing strategies among market beginners might have catastrophic results.
You can access all the notifications related to your portfolio / strategy’s execution status by clicking on the bell icon on the navigation bar.
In an adverse scenario or a black-swan event, you could access the Panic Button by clicking on the accounts icon on the nav bar and there you can see a Panic button. It would immediately terminate all active algos so that your exposure is minimized in the markets.
Live Trading
With uTrade’s single-click deployment, deploy strategies/ portfolios in the Live market. Real risk, Real Capital and Real Profits.
Backtesting
Test your strategies using a massive pool of historic data and get a taste of how your strategy would perform in the Live market.
uTrade’s – Accurate historical data, Comprehensive Reports and Fastest backtesting engine lets you test the waters before stepping into the real market
Go to login.utradealgos.com After that click on sign in Share India if you are an existing user with Share India, using your Share India user id and password. After login you will receive OTP either on mobile number or on your Email Id. Once authenticated, you click on authorize to link your shareindia account with utrade and begin trading!
There are 6 uTrade Originals strategies on uTrade which have been built by market experts for different market conditions.
- You can click on any to know more about the strategy and in which market conditions it performs well, the margin requirements etc.
- Subscribe to the strategy which fits with your view of the market and click on the deploy button.
- A dialogue box will appear containing the strategy’s parameters. After reading that carefully, you can click on proceed.
Your required strategy is now deployed.
For every strategy you need to have a different amount of balance to deploy. A different strategy has a different set of requirements. To keep you informed, we’ve integrated a margin calculator on our platform so you can always keep track of your margin requirements and make informed decisions.
Panic control button is in the top right dropdown, once you click there you get two options either to stop all strategies or to pause all strategies.
- Stop all: Terminates all running strategies and squares off all open positions in the market.
- Pause all: Stops any further execution while not impacting existing open positions
While you have logged in with uTrade Algos , on the top right corner you will find Index Watch where you can see the current market situation and pin that dialogue box accordingly.
Terms and conditions - https://utradealgos.com/terms-and-conditions/
Whether you’re creating your own strategy using our powerful strategy builder or subscribing to a pre-defined strategy- ‘Margin Required’ field tells you how much margin would be deducted from your account with the broker. To get an in depth idea about calculation and different types of margins - use our Margin Calculator feature.
uTrade Algos is a powerful Algorithmic Trading Platform that lets you Plan, Strategize, and Automate your trades without writing a single line of code.
uTrade’s proprietary features:
- Advanced Strategy form,
- Fastest backtesting engine,
- Pre-built algos modified over years to perform in diverse market conditions,
- Advanced Payoff Graph
- Integrated Margin Calculator
and a lot more to make systematic trading easier, faster and accessible to all.
Since you’re trading in Options- it’s a fair question whether knowing Option Greeks in and out would be a deal breaker or not, when it comes to Algo trading.
But if you still want to explore the world of Options, simply search for Pre-defined strategies –> understand their execution logic –> deploy them in a simulated trading environment using out Algo Forward Test feature even with a free account and see if the strategy is working out for you.
If it does, then reap the benefits by deploying it on Live Trading and experience the world of derivatives even without knowing much about them. Leave Greeks to the finance nerds!
uTrade Algos is on the cloud and can be accessed from anywhere with your browser. While there’s no known problems in running it with any browser but still the recommended ones are:
- Google Chrome for Windows
- Safari for iOS
Stop loss is an advanced order feature wherein one can set a limit on the loss they can bear. When the trade starts moving against you, you can set a limit to the adverse movement you can bear for this trade and if the limit is breach, you exit the trade thereby limiting your losses. It?s an effective and often essential measure of Risk Management.
Break Even point is that price point of the underlying at which your strategy would yield a scenario of no profit no loss – hence breakeven. Good thing that uTrade Algos comes equipped with a powerful payoff graph which gives you vital information such as the breakeven point (s), Maximum P&L, margin required and what not!
Learn more by checking out this video on our interactive Payoff Graph →
uTrade Algos has some amazing features, such as Advanced Strategy form, Fastest backtesting engine, Interactive Payoff Graph, Margin Calculator and a lot more.
Level up your Derivatives Trading experience with uTrade’s proprietary No-code strategy form and single-click deployment.
Test your strategies using a massive pool of historic data and get a taste of how your strategy would perform in the Live market. uTrade’s – Accurate historical data, Comprehensive Reports and Fastest backtesting engine lets you test the waters before stepping into the real market.
A payoff curve is a graphical representation of the potential outcome and its resultant Payout generated from your strategy. It indicated P&L at different possible underlying price movements, usually intended to depict the outcome at expiry.On the X-Axis is the Price of the underlying, while the Y-axis depicts potential Profit & Loss.One can infer important information about their strategies such as: Break Even point, Max P&L, Options Premium etc.
Using forward testing, you can test your strategy’s logic by trading in a simulated market environment. It helps you to get an honest picture of real trading dynamics without risking even a single penny with our accurate market simulation. Tweak and Strategize your Strategy accordingly to better your odds to beat the market!
Simply put, an Underlying is the asset that must be delivered when a derivative contract is exercised. The derivative as the name suggests derives its value from the underlying which can be an asset, an index, or even another derivative.
While each strategy has separate entry and exit parameters, and once a condition is satisfied, the position will be taken based on your settings in the price execution section, but it’s still prudent to add another layer to manage your risk by setting clear Target and Stoploss as you do in Normal Trading.
When a Target or Stop Loss is defined, uTrade’s trading engine checks for
The trigger price –> when the price is triggered –> a Market Order is sent and then executed if the conditions apply thereby limiting losses or booking profits timely.
Not at all! You can start Forward Testing with 0 Capital amount and even without a brokerage account!
Try your hand at simulated trading, refine your strategy logics, and when you’re confident – you can choose to trade in the live market – for which both trading account and enough capital would be mandatory to be able to deploy the strategies.
Algo trading, short for algorithmic trading, is a method of executing financial transactions in the capital comprising computer algorithms. It involves the use of pre-programmed instructions to automatically place trades on behalf of investors or traders. These algorithms are designed to analyze market data, identify trading opportunities, and execute trades with speed and efficiency.
Algo trading relies on computer programs that are written to follow specific trading strategies or rules. When the conditions specified by the algorithm are met, such as a certain price level or a particular market pattern, the algorithm automatically executes trades in real-time without human intervention.
While algo trading offers many benefits, it also presents some risks and challenges, including:
- Technical Failures
- Over-optimization
- Market Risks: Algorithms are subject to market risks and can incur losses if market conditions change rapidly or unexpectedly.
- Regulatory Risks: Algo trading is subject to regulations and compliance requirements that traders need to be aware of and adhere to.
- Lack of Human Judgment: Algorithms lack human judgment and may not account for certain qualitative factors or unexpected events that can impact markets.
It's important for traders to understand these risks and implement risk management strategies when engaging in algo trading.
Algorithmic Trading can be risky, just like any other form of trading. Poorly designed algorithms or improper risk management can lead to significant losses. Proper risk assessment, backtesting, and continuous monitoring are essential to manage risks effectively.
Yes, algo trading is completely legal in India, and it does not matter whether you are a retail investor or an institution. uTrade Algos is an empanelled vendor with NSE, following all the regulations and mandates by regulatory bodies. Additionally, all premade strategies are first appoved by the exchange before getting listed on the platform thus ensuring protection of the interests of the investors.
While having programming skills can be beneficial, you don't necessarily need to be an expert programmer to use Algo Trading. Many platforms and libraries offer user-friendly interfaces and visual tools that allow traders to create algorithms without extensive coding knowledge. However, learning programming basics can provide more flexibility and customization options.
Yes, algo trading is completely legal in India, and it does not matter whether you are a retail investor or an institution. uTrade Algos is an empanelled vendor with NSE, following all the regulations and mandates by regulatory bodies. Additionally, all premade strategies are first appoved by the exchange before getting listed on the platform thus ensuring protection of the interests of the investors.
Squaring off is a trading style that day trade investors use to make profit from the market volatility. The trader buys a number of stocks of one company and sells them off on the same day at a higher price usually, which gives the trader an amount of profit.
The capital required for Algo Trading can vary depending on your trading strategy and the assets you choose to trade. While it's possible to start with a smaller amount, having sufficient capital is important to cover transaction costs and potential fluctuations while trading in the FnO market.
No, uTrade Algos has something for all levels of traders from beginners to the pros. While the simplistic form is self explanatory using which any strategy can be automated, for complete beginners subscribing to a prebuilt algo by Industry experts - uTrade Originals might be prudent*. However, understanding basic trading concepts and gaining familiarity with market dynamics is essential to create effective algorithms and manage your strategy’s risk properly.
*This is in no way an Investment advice, please do your due diligence.
No. NeitherAlgorithmic Trading in general or uTrade Algos in any way guarantee/suggest consistent profits or sureshot returns. Trading, irrespective of the technology involved, has risk involved and is influenced by factors like market conditions, strategy design, risk management, data quality, and market dynamics.
Traders must rely on technology to trade. There can be a risk of failure of the system or a weak internet connection. Thus keeping a broad track of execution status here and there, tracking your strategy’s performance initially before going big, understanding uTrade Originals strategies (prebuilt algos by experts) and in which market scenario it works well could be some steps you can take to ensure better experience with uTrade Algos.
In financial markets, the term "Future" refers to a type of derivative contract that obligates the parties involved to buy or sell an underlying asset at a predetermined price and date in the future.
For more information → https://utradealgos.com/blog/comparing-cash-vs-futures-market/
It is not absolutely true to say that High-Frequency Trading (HFT) generally beats manual day traders, it all depends on what kind of day traders we are talking about here. If you are talking about day traders who are taking advantage of arbitrage opportunities or market inefficiencies, then yes, machines can do such things much faster. A machine can send thousands of orders in a second so there is no match here.
Definitely! In fact, this is one of the benefits of automating your strategy. Algos are void of emotions which works very well especially in the financial markets, thus relying on an Algo engine does not only ensure better execution but also makes you a disciplined trader.
Express speed - Algos have the ability to fire orders at 1/1000th of a second, way beyond the scope of manual trading.
Automate execution - Instead of monitoring your trades manually, feed parameters into the order form and let our powerful algo engine take care of the rest.
Become Disciplined and eliminate the emotional bias - Algos are void of emotions which works very well especially in the financial markets
Not convinced?
Blog - https://utradealgos.com/blog/ten-reasons-every-trader-should-get-their-hands-dirty-with-algorithms/
Video - https://youtu.be/pCYi_PS5IRY
Each uTrade Algo strategy is best suited for a particular market condition. It is important to understand the strategy’s nature and the scenario it works best in before deploying it in the live market. You can click on any strategy card to learn more about it.
We don't share anyone’s personal or customized strategies with anyone nor uTrade Algos/Share India use it for their own use. All the custom strategies made by the user are confidential.
There are various types of algorithms used in Algo Trading, including:
- Momentum-based algorithms
- Mean reversion algorithms
- Statistical arbitrage algorithms
- Market-making algorithms
- Volume-weighted average price (VWAP) algorithms
- Time-weighted average price (TWAP) algorithms
Not at all! While Professional traders get an edge using Technical Analysis, uTrade users Platform need not worry about learning Technical Analysis from scratch and even a complete novice in the markets can experience Algo Trading using are Pre-made strategy forms that lets you deploy over 20 strategies with a single click.
Since you’re trading in Options- it’s a fair question whether knowing Option Greeks in and out would be a deal breaker or not when it comes to Algo trading. But if you still want to explore the world of Options, simply look for uTrade Originals strategies → understand their execution logic → backtest them and get an indication if it’s working well for you.
Even without the knowledge of greeks, one can create various strategies by understanding the market environment and reap potential benefits of their analysis.
Backtesting gives you an indication* of how your strategy would have performed in a specific time period in the past using historical data. You can guage a strategy’s effectiveness in different time periods & market scenarios, improve it to remove any potential hiccups.
uTrade Algos also generates detailed reports which gives you crucial insights on your strategy’s performance and execution.
*Please note that backtesting is only indicative and in no way a surety of your strategy’s profitability in the future.
No, backtesting is only indicative and in no way a surety of your strategy’s profitability in the future. While backtesting provides valuable insights into how a strategy would have performed in the past, it is important to recognize its limitations which could arise due to different market conditions, volatility, system issues and so on.
No, backtesting in no way guarantees future trading success. While backtesting provides insights into strategy performance based on historical data, it is merely an indication as it does not account for future market conditions, unexpected events, or changes in market dynamics.
Calmar Ratio → The Calmar ratio is a gauge of the performance of your strategy. It is a function of the fund's average compounded annual rate of return versus its maximum drawdown.
Statistically, Calmar Ratio = Net P&L/Max Drawdown
The higher the Calmar ratio the better with anything over 0.50 is considered to be good. A Calmar ratio of 3.0 to 5.0 is really good.
It may take 2-3 working days to receive Share India account credentials to start uTrade Algos Journey and trade like a Pro. Meanwhile, you can still explore our platform, get a hang of the features and experiment using the free 15 day trial. Once you’re brokerage account is active, you can then deploy your strategies in the live markets!
A trading account is essential if you want to trade in the Live market as uTrade is just a layer over your broker which handles the Automation part of your strategy.
You can easily open an account with ShareIndia and get started. Open your demat account here: https://www.shareindia.com/open-demat-account
If you are already an existing user with Share India you only need to fill in the credentials and login, but if you are a new user you need to first open your account with Share India. For that you need to have the following documents like : Pan Card, Aadhar Card, 6 months salary slip or income proof, active bank account details, e- Signature.
For custom strategies: The capital required to deploy a trading strategy can change depending on several factors, including the type of strategy, the markets being traded, the desired level of risk, and the individual trader's goals and preferences. There is no fixed amount of capital that applies to all trading strategies.
For uTrade Originals: you get to see exactly how much capital is required for each strategy. Currently you need a minimum capital of Rs.8,00,000 for a particular strategy. Please note that each strategy has its own capital requirement, which you can check by clicking on the strategy card.
PAN card details due to regulatory obligations, such as adhering to Know Your Customer (KYC) guidelines, preventing money laundering, and complying with tax reporting requirements. By collecting PAN card details, the platform can verify the identity of the account holder and fulfill its legal and regulatory obligations.
No, the account opening process with ShareIndia is fairly intuitive as our KYC process is integrated with Digilocker so once you connect your account and upload the required documents you can easily get started with ShareIndia.
uTrade Algos requires you to link or verify your Aadhaar details to comply with regulatory guidelines, such as Know Your Customer (KYC) norms set by regulatory authorities like the Securities and Exchange Board of India (SEBI). The e-Aadhaar site allows users to access their Aadhaar details online and download a digitally signed copy of their Aadhaar card.
During the account opening process, you may be redirected to the e-Aadhaar site to provide your Aadhaar details and complete the verification process.
If your mobile number linked with Aadhaar is not active anymore, it may create difficulties in the process of opening an algo trading account that requires Aadhaar verification. The Aadhaar verification process often involves an OTP (One-Time Password) being sent to the registered mobile number for verification purposes.
Skipping the Aadhaar verification step may not be possible, as it depends on the specific requirements and policies of the algorithmic trading platform and the regulatory guidelines they adhere to. Many platforms in India mandate Aadhaar verification as part of the KYC (Know Your Customer) process, which is a regulatory requirement.
Storage and handling of traders' data by uTrade Algos is done in compliance with relevant data protection and privacy regulations. Additionally, it is advisable to take necessary precautions to protect sensitive information, such as using secure passwords, enabling two-factor authentication, and regularly monitoring account activity. Please go through the Privacy policy to get an in depth idea of our practices - https://utradealgos.com/privacy-policy/
In order to trade with uTrade Algos you only need basic laptop/desktop and an internet connection as is the case with any trading platform. With uTrade Alogs we brought the convenience of internet based trading, with the power of algorithms without the need of sophisticated expensive infrastructure.
How can we help you ?
Knowledge Centre & Stories of Success
Options trading is a realm replete with potential rewards, offering traders various strategies to capitalise on market movements. However, the complexity inherent in options demands a cautious approach. Unlike other financial instruments, options carry specific nuances such as strike prices, expiration dates, and diverse option types. Navigating this intricate market necessitates a deep comprehension of these aspects, as miscalculations can lead to significant losses. Here are seven common pitfalls to evade for successful call and put option trading.
In algorithmic trading, the importance of risk management cannot be overstated. Algo strategies, while offering speed and precision, are inherently intertwined with risks. Understanding and effectively managing these risks is paramount as it determines the success or failure of such strategies. Here, we explore the pivotal role of risk management in shaping the fate of algo trading strategies.
In trading, the validation and optimisation of strategies are pivotal for success. Backtesting, the process of testing a trading strategy using historical data, is a crucial step in this journey. While both algorithmic and manual testing methods have their merits, algo backtesting holds several advantages over manual testing. Let's find out the specific benefits of utilising algorithmic backtesting for refining trading strategies.
