I hope you would have already heard about Algo Trading (short for Algorithmic Trading). It makes use of complex mathematical models, formulas and statistics to speed up the transactions and decision making process in financial markets. Algo trading requires smart and fast computers to determine or create the trading strategies for getting optimal returns. If you are testing the waters in this field, you must be getting confused about which tools, software’s or platforms to be used to get the best results. Let us help you with that. Here, we are listing the best and popular Algo Trading Softwares which are tried and tested. You may start exploring any of them to get the best results.
As in Algo trading, there is no human intervention, it makes the trading systematic and helps to bring a lot of liquidity in the ever boosting markets. With the help of algorithmic trading systems, the traders can make intelligent decisions regarding arbitrage, hedging in a market, market making etc. With the SEBI’s green flag to the use of advanced technology in the equity market, it has gained a significant popularity in India.
Also Read: Algorithmic Trading Courses for Beginners
Presto ATS has got a good name in India for automated trading in nearly all asset classes. It is developed by well-known company ‘Symphony Fintech’. It works best in the three areas of algo trading:
(A) Strategy Building
(B) Automated Trading
(C) Back Testing
Presto hosts a lot of APIs. These APIs can be connected to many Indian exchanges. It is popular among the retail clients and the use of its licensed software costs about Rs. 25,000 to Rs 35,000 annually. You can connect your trading algorithms written in Amibroker or Excel Sheet with Presto’s interfaces and automate your system. It is definitely one of the best and most feature rich algo trading softwares available in India today.
This software solution is developed by NSEIT and enables algorithmic traders to deploy and execute their strategies across different exchanges and trading instruments. This platform is specialized to provide low latency intelligent execution with comprehensive monitoring and control. On one hand, it helps to reduce the transaction cost and on the other, it helps to trade smartly to get maximum profitability. It offers very professional and user friendly GUI through which you can seamlessly execute your trading algorithms.
This is a very versatile platform to help traders to deal with many asset classes like Derivatives, Commodities, Currency and Equities. It can execute a variety of business strategies like 2L and 3L spreading, order slicing, basket trading etc.
The Nest Plus API can work in two modes: (A) Semi-auto mode (to help retail clients) and Full-auto mode (to help sub-brokers). If anyone is interested in keeping a market watch or to get a news control bar or chart, they can customize this trading terminal to suit their needs.
Omnesys Nest Gate tool is used to create directional execution algorithms which can be customized. To help the traders to take effective decisions, it has also included some real-time recommendations. Along with it, it also supplies scrip based news with the help of its partner Dow Jones.
Also Read: Auto Trading Softwares and Plugins
ODIN is one of the best known Algo trading softwares for its risk management and multi-exchange capabilities. Its OMS (Order Management system) got the applause for all the possible good reasons. The new modules from Heckyl and Dow Jones. Heatmap, smart order routing, conditional ticker and bulk order entry are among some of the best services offered by this amazing algo trading platform. It has flexible API-based integration. Recently, ODIN has added new exchange segments in its stride like UCX (Universal Commodity Exchange), MCS-SX equity and market for OFS segment.
MetaTrader is one of the most popular and long existing platforms which helps you to write and backtest your strategies. To automate the trading, it enables it users to write their own scripts in MQL4.5 scripting language. The platform produces real-time charts and prices to help its users. It embeds the MQL4 IDE, which allows users to develop trading robots (expert advisors).
And finally our favorite tool, Amibroker. It is not essentially a Algo trading software, but it can help you to code your trading system and backtest it on real market data. Its a very versatile tool with all the essential functionalities required to create a robust trading system from scratch. Some of the key features are Portfolio backtesting, Monte Carlo simulation, Optimization, Custom Backtester and Quant trading support. In order to code your straetgies you may have to use AFL (Amibroker Formula Language). There are plugins such as Pi Bridge for Amibroker through through which your orders can be automated based on buy/sell signals from strategy.
As illustrated, all these Algo Trading softwares are comprehensive and robust. They are all multi-tasking platforms and perform a variety of works ranging from risk management to smart order routing. But the only thing that bothers much is the price tag. For retail traders, most of these tools are unaffordable. We hope, that with increasing popularity and competition the prices will go down for sure in near future. Let’s hope for the best.