Rule Based Trading

Traders, regardless of whether they are new to the markets, or have amassed years of experience tend to run into roadblocks and hurdles while traversing the stock market landscape. This is because trading isn’t entirely a straightforward process and requires the ability to understand the markets and have an understanding of the stocks one primarily deals with. 

Moreover, what differentiates good traders from the lot is their ability to successfully employ trading strategies. Once you, as a trader, find a strategy that works for you, you must try to stick with it. 

Simplifying Life of Traders with Rule Based Trading

Traders may often find that it is possible for their emotions to get in the way of their trading decisions which is most detrimental. This is because they start getting attached to a certain stock and it becomes hard to part with it. Eliminating this emotional tether is a possibility with rule based trading.

 Rule based trading has become an option for traders in the past few years. It has allowed computers to function in accordance to a defined set of instructions called algorithms.

Trades take place as per these algorithms which may vary from one trader to another. Each of the trades carried out via rule based trading is done with a speed and frequency that is virtually impossible for human traders to carry out.

These trades take into account the timing, quantity and price or make use of a mathematical model as per the trader’s preference. 

 What makes rule based trading stand out is its ability to create more opportunities via which traders can generate a profit. This trading style has made a greater level of liquidity available in the market and allowed for systematic trading to occur. This is owed to the fact that human emotions are no longer in play with rule based trading. 

 To add to the appeal that rule based trading brings with it, owing to the fact that trades are timely and instant, it is possible for traders to avoid dealing with major price changes. Further, automated checks are carried out on diverse market conditions concurrently. 

 With rule based trading, it is possible to carry out backtesting which makes use of historical as well as real-time data available which helps traders assess how viable their trading strategy is. 

 Traders hoping to simplify their lives ought to consider Angel One. Angel One has made rule-based trading a possibility by introducing SmartAPI which allows traders to set up their own trading platforms in a matter of minutes.

Owing to the fact that these trades are carried out by computers, the potential for errors is minimized. Rule based trading has most definitely helped simplify the lives of traders as it has made it possible to make high-frequency trades. 

 Angel One’s offerings are worth noting here as they are provided for free, are user-friendly, and incorporate a minimal amount of coding. With the SmartAPI platform, it is possible for traders to carry out their trades at the best prevailing prices in the market.

Furthermore, the likelihood of trades being executed at levels that a trader would like is greater as order placements are instant and carried out with accuracy.

In addition to rule based trading, Angel One offers users the ability to improve their financial literacy with their knowledge center. Those wanting to keep tabs on the markets can do so with ease as the Smart Buzz offering allows users concise summaries of all pertinent information relevant to the markets. Each of these offerings is aimed at simplifying traders’ lives.

Disclaimers
*This blog is exclusively for educational purposes and does not provide any advice/tips on Investment or recommend buying and selling any stock