Using DMA to Capture Alpha in Indian Markets
Posted in Trading Strategy by Admin
Nowadays trading, specifically intraday trading in the Indian stock market has become difficult
Jobbing desks are closing down. Rolls where opportunity are always seen in last 2-3 days of expiry too have shifted (90%) to Machines. Manual VVAP are unthinkable.
Why is this happening? Well because technology has taken over humans. DMA has eliminated arbitrage opportunities in last 1 year.
Unfortunately Investor and individual traders unlike brokers do not have advantage of high turnover low margin business. They have brokerage and other cost to pay. Thus, hedging and arbitrage has become domain of only Brokers proprietary accounts that are happy getting just above bank rate of interest.
So what is solution for average investor?
Investors all around the world including developed markets always gained maximum from Alpha in the market.India is no different. Also now with acceptance of algorithm trading for directional strategy and DMA “Direct Market Access” brokers can easily give advantage of algorithm trading to their HNI’s and traders specially where fewer number of orders are generated. The process can be fully automated with integration of our path breaking software Falcon7 Pro with any CTCL adapters.
For Reliable Software Systems Ltd it has always been passion and prime aim to help every investor to beat the odds against them. Since last 20 years it has been our endeavor to do just that with all the earnest and sincerity. For that we developed “Trend” Software which continues to have active users even after 20 years. That shows how advanced the software was for its time.
Automatic trading has several advantage over manual trading namely,
- Using DMA to automate response to breakout and sudden moves
- Being in sync with market makers
- To prevent failure in accurate analysis and correct reading of data
- Large number of indicators that need to be taken into consideration for every decision
- Automatic confirmation of synergy of indicators: Removing subjectivity
- The need for speed of response; Use of Non skilled person to manage trading account
- The psychological obstacle and mental stress: For machine Market is always right
- Online Risk management: Key to success to any trading strategy
Reliable Software Systems Ltd has again kept promise with the investors.
Falcon7 and Falcon7PRO release has brought investors, traders and HNIs to realm of algorithm trading. Not only can you program buy and sell strategy with the software but can also back test and front test your strategies. Falcon7Pro has put power of writing your own expression in investor friendly language in the hands of every trader. Embedding online risk management makes it a tool which would only increase your capital over time and will not allow market to make dent in the same.
A time has come where trading any Market without software like Falcon7 is like hand picking Gold coins scattered on the expressway. You will never know what hit you :).
For any further queries on article or on FalconPRO one can contact the author Milind Masrani (Director, Reliable Software Systems Ltd) on (022) 40918902