Algo Trading के बारे में सब कुछ | Abhishek Kar | Automated Trading Strategy - YouTube

Many people ask me many questions related to Algo trading that,should we do Algo trading ,it's necessary,

no one become successful without doing Algo trading,how much time it's take to learn,

a person who are belonging to non engineering or non coding back ground, they can also go to Algo?

What it's advantage and disadvantage or how much money will spend in it.If you want to know all this

thing then watch the video till it's end, because all this thing with respect to Algo trading, in little deep

based on my real time experience, we'll try to understand it.So first of all we try to understand that,what's the

advantage? Why do people, definitely want to go for Algo trading.It's a simple thing,speed of

execution get increase. See Algo trading is nothing but your strategy,Technic or system you don't use

it manually. You just leave Robot behind them,I don't want emotion and all you run directly this thing.

So basically you set the Algo. If I tell you on the basis of simple example,

if you have to place the 30 order in 15 seconds,30 orders in only 15 seconds,

So by doing it with manually, so you remember grandfather,granny, uncle,aunt.

But if you guide Algo that way, they prepare 100 orders instead of 30.That's why you see many times,

when you trade specifically in option so many times price didn't see but when you enter price

then suddenly all prices come, no human doing this nor God,who do this, the Algo system.

So the second question comes to the people that,abishek sir we don't know this Technical things

so can we take prebuilt system,for example Zerodha provide it and many firm are comes like this,

that we have prebuilt system and Algo system like 25000,50000,100000 rupees so shall we buy it?

So for that I tell you a trick again based on my experience that, there are 2 or 3 issues in every platform.

First is traffic issues for example too much traffic occur then you get lag in data.

So basically the data which comes to your broker in 10 sec that data must me have in this system in 15,16

seconds.If traffic issue were not there then infrastructural issue must be there.

Infrastructure means I'm not talking about homes and all, I am talking about, let's take an example

now today, suppose your name is Manoj,so Manoj says I'll give money to this xyz website,

and will work on it's Algo system and usually they have some prebuilt scanners or screeners,

which is limited just 50 combination, for example moving average break out, volume break out,

all time hike out got break out that's it.So it's possible sometimes it's becomes generic, that after a certain

point of time it won't be must use. Instead, If you create your own prebuilt Algo system,

so you can make a permutation, combination by doing small things and back testing it,

you can make a system here.But your question must be that we don't know coding,I can't do coding properly,

but I have to make a full time career as a Algo trader so here I tell you,it's not necessary to become

a good Algo trader.Listen carefully it's not necessary to become a good Algo trader,you have to

a very good coder.If so, then the best toppers,IIT'an, IIM all these people would be the best in the field

of trading.At the end they stay here and here.What you have to understand that if you don't know

so it is worth paying someone rather then you try on it in day and night.You're being serious so give them some money

and how much you should pay that also I'll teach you.Now we'll talk on this some

challenges and now we go for to understand, suppose we don't know and we go for out source so

what it's cost? If you out source to a developer or programmer so it's depend on you that which type

Algo system did you want to make.There are two categorizes.One is simple, how will the simple

system? In which you says, let's take an example, if stock gone to on moving average.

If my stock go to 50 days moving average in 100 stocks and it stays there for 5 minutes

so my Algo system will give me buy and put 1% stop loss and 2% target.

This is simple system.On the same,what will happen to the complex system that

when it goes above moving average, it also beaks out of Fibonacci,

with together here something gets some mean reversion and with also when the volatility is too much,

with if you didn't like Abishek sir's video so like it now, whatever happens together is so complicated

in this way. So the costing is different.On an average the rate of market, the complex system

is nearly,I'm talking about 1 system even if you do with good person so it'll 20 to 25000 rupees.

According to me in simple system it'll done in 7 to 10000 rupees, depends on your negotiation skills.

Many traders have in house team and give month wise salary because every time they have to change this thing.

Now here let me tell you that here there is one concept you have to buy data.

Yes,you have to buy data. why have to do,what have to be done that also we'll understand.So the most

reliable based on my experience of the last couple of years is true data

of NSC approved instruments, if you do a little bit of measurement

so according to me you'll get yearly data in 8 to 10000.Now you ask me that why we give money

why don't we take it from Upstox,Zerodha and Angel, that also I'll tell you as I told you everything

I'll tell you everything about Algo and Friends,if you didn't subscribe the channel then subscribe it. Now next to that

there is one question in your mind that Algo trading is holy grail just like if you put this then life is joyful.

See nothing like that,at the end what Algo system do,it replace your manual labour. So that

your emotion saves and all this into a robotic system.At the end you don't have good strategy,rule,system

so you go anywhere in the world you can't earn money infact the trend of Algo system came from

foreign. In foreign many people, whether it shares,Forex,commodities or Crypto's

told you that you can buy data over here but there is one question in your mind that how much time it

take to learn.Lets say if you belong to IT field what thing is necessary for you, first you have to know

about python then you ask why python, why not Java.You can also do with java many traders did it.

But around the python there is a build up of huge community across the social media platforms.

It's easy to you to interacts with others,many people available on Twitter,Facebook

and you can get from You Tube also and that's why I recommend python.On an average if you learn itself

at least it'll take six months time.In starting you can download NIFTY data from NSC's website

some people will try from Zerodha but you can get till 2015's data, if you want before it

and again I give option of truevdata and true data didn't give me a single rupee

but I'm just telling you that you have to do this thing.Now, according to my

personnel experience what is the main advantage?Two advantage, first, you might have seen some time free trade

occurs or If you remember some time issues occurs with brokers, it didn't work from morning to

evening or any issue, so in that case, in your Algo system you can keep SL orders instantly

plus you give condition when sms alerts come when your orders didn't pass,so that way you can

plan as your way.So Algo system can go up to a very advanced level.Where you set lots of thing.

My personal major advantage is whatever large skill you have,lets take an example,I have to do 600 lots

of bank NIFTY. So if have to do 600 lots of bank NIFTY okay so practically it's not possible,

if do manually then price will goes at next level in 5 minute,but same thing if I do in Algo,

with adding different different loop, within 10 to even 50 seconds, it split and execute all orders

according to that it depends on, at what speed I have kept,what protocols have I set.So can you just

imagine means a manual person will take at least two and a half minutes and it'll do like "thak thak".

So here it happen so soon.So that is a basic advantage but second question arise with this

should retail buy data? So here I have a simple question that,

those who are retail beginner if they find data of 2015, from 2015 that is fine,

they can fetch in from zerodah all those things, and second thing

some people ask can we go to co-location and trade? so let me tell you this facility is only up to HFTs,

high frequency traders which trade on 100-200 crores, and never share screenshots,

earns money, lives life and never share the video on youtube, so these people are there,

so according to me retail doesn't need to buy data in starting, you can do all this by downloading on excel but,

then your question will be why i took the data from true data or is taking, so the simple answer is

because reliability, when your scale increases, when your funds are big when you play in to a few cr.

then it becomes necessary that the most accurate data you get, so can you just think that,

someone may be doing from crores of funds, then that person won't mind to spend 10000-15000 rs.

or even 20000 a year just for the data so that he gets accurate data, accurate back testing,

accurate everything, but with that algo system have challenges, by the way guys if you haven't liked till now then do like,

the more likes the more videos, so what are challenges? so first thing you might have seen that,

many times what happened is like for example russia and ukriane war happened

suddenly gap up gap down happened, and 1000 points difference occurs, then what happens is,

the deep out of money where no liquidity is there, it gets much liquidity suddenly and,

if went in reverse side, for example bank nifty is on 36000, and you took call of 37000 for hedging lets assume,

now next day suddenly a big gap down occurs of 1000 points, and suddenly everyone will be gone on 37000 call,

so when liquidity crunch will happen, then your algo will not be able to find right person and will not be able to crunch,

and due to this you have to enter manually or a big loss will occur, and for many people,

algo system did loss too during COVID and other then that, so one has to be,

very careful, and by the way if you want more videos on algo trading then write algo in comments,

the more algos i see the more sooner the videos will come, other than that you have to understand,

that make your algo that much efficient from time to time that, it completely copy you,

and becomes robust that even in the worst case scenario it can copy you and execute the trade,

that is something which you have to keep in mind, now one more question arise that,

a new person comes and invest in algo so should he start from 2 lac 4 lac capital? No,

start from 5000, 4000, now you will ask in 4000 which option comes future comes?

so i said why to start from future or option only? start intraday you will get 5X leverage,

start with something like PNB or ITC, not from ITC you will get wrong back test result,

meaning if you work with this kind of stocks, then you wont face problems according to me,

next, should every retail take algo? so let me tell you like data cost, then algo maintenance cost,

for API too you have to pay cost for example when you take zerodah or upstocks API,

then 2000-3000 it also cost per month, so if you see this and if someone brings 2 lac rupees,

so its 5 to 10% will be spent on this only, so according to me that is not a viable solutions,

plus drawdown is separate, practice is separate and all this things, so according to me,

till your capital doesn't go more than 10 lac, listen carefully, till then you don't require algo,

what is this algo algo what is this algo algo? you dont have to, its kind of like a song, but,

anyways you are not required to do this much, yes if your capital goes above 10 lac then,

according to me it becomes really very important to approach all this things so that,

your scale will be maintained, and when your scale will increase then take true data so that you get reliable data,

and till you don't get till then you can get all the data of 2015-16 from all brokers,

so guys i hope you all have learned something interesting from todays video,

if you have learned something new then don't forget to like, till then keep learning, keep growing, keep investing and

yes, if you want more videos on algo and some demonstration too then,

write algo in comment the more algos the sooner videos will come,

till then keep learning, keep growing, keep investing and keep trading.