Automated trade



  • Hello, you say SEBI disallows fully automated trade. But obviously your API has capability to place buy/sell orders . Then what exactly is restricted by SEBI ? I mean , if I can buy and sell a stock using your API , then isn't it an automated trade ?? I want to what excitably is restricted by SEBI , before I spend effort on building the strategy . Can advise pls ? Thanks


  • Global Moderator

    Hi @chittasec ,

    Consider a trading app where you are clicking the buy button continuously at a rate of 200 clicks per minute, it means you are placing 200 orders per minute, how can the exchange differentiate is the order gets placed by a human being or a software?

    The reality is exchange can't differentiate a normal order placement from an Algo order placement. What matters is the frequency and order at which the trade gets executed if the exchange gets a realization (using their own metrics) that the orders getting placed are beyond the allowed limit it will block all the orders from that particular ID for the day. It doesn't matter if the orders are getting placed by a human or an Algo.

    It will block you if it detects that your trading frequency is not humanoid. It can even block all the orders from the broker firm from which you are placing the orders.

    To prevent it there are several restrictions imposed both by exchange and your broker, but once in a while, there is a piece of code which will break it.

    Thanks,
    AlokGaira



  • This is interesting question and an interesting answer. So does that mean that you have a mechanism to throttle orders and ensure they look more human like?
    Also, do you have any other pre-requisite to start using API trading like
    NCFM certifications?
    Minimum order size/funding?
    maximum number of trades allowed per day via API?


  • Global Moderator

    Hi,

    Currently, we don't have any throttling in orders, the only throttling we currently have is based on your margin, also we don't have any mechanism to make you order stream more human like. All the order throttling is done on the exchange and will be applied if required.

    Soon we will have request throttling on our side, this is on our roadmap.
    We don't have any other pre-requisite to start using API trading, but for very specific clientele we can provide some certifications from the exchange.

    Thanks,
    AlokGaira



  • @AlokGaira said in Automated trade:

    Hi,

    Currently, we don't have any throttling in orders, the only throttling we currently have is based on your margin, also we don't have any mechanism to make you order stream more human like. All the order throttling is done on the exchange and will be applied if required.

    Soon we will have request throttling on our side, this is on our roadmap.
    We don't have any other pre-requisite to start using API trading, but for very specific clientele we can provide some certifications from the exchange.

    Thanks,
    AlokGaira

    And you don't have margin's WebSocket event yet. Strange! This is called half backed product TBH.


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