Let me ask you a million dollar question, should you let a computer do the work for you, or should you trust a human to do it? I think the point is fairly obvious. So why are humans hesitant to let computers decide which stocks to trade, when to trade them, and when to take profit? A computer can monitor thousands of stocks, identify the best opportunities, and make split second buy and sell decisions faster than we can click a mouse.Computers can beat the best chess players in the world and now they are laser focused on a much bigger and more lucrative game; the stock market. If you aren’t taking advantage of this technology you probably are losing money in the market. The war has begun and it’s time to arm yourself with the best trading software.
By supporting low latency market data distribution and guaranteed messaging with a single platform and API, Greeksoft’s solutions can help your firm accelerate your trading systems from end-to-end while reducing the complexity and cost of infrastructure. Our Complex Event Processing (CEP) architecture ensures that the micro-second responsiveness remains sturdy even when market data volumes reach a high range of events per second and/or concurrent strategies stack in the thousands.
With the Greeksoft Automated Trading Software (G.A.T.S), you can not only keep up with the evolution of technology, but firmly place yourself ahead of the trading curves. So be an early adopter who recognizes a game changing technology that can give you the edge you need to be successful.
Be Smart, Go Automated.
Greeksoft Technologies Automated Trading Software G.A.T.S is one of the leading providers for B.S.E Liquidity Enhancement Incentive Programme (LEIPS) .We have more than 120 Members trading in market making scheme through our algo’s. But what exactly is BSE LEIPS?
The Liquidity Enhancement Incentive Programme (LEIPS) was launched by the BSE to strengthen the derivatives trading platform at BSE. The programme gives cash incentives to both market makers and general market participants for trading in the SENSEX, BANKEX and 30-SENSEX stocks futures and options contracts. It is designed within the formal guidelines laid down by the SEBI in this regard. LEIPS has had a tremendous response from the investor/broker community, and more than 350 members have traded in BSE’s derivative segment after the launch of the programme.
A market maker is a member who provides for buy and sell orders within a maximum spread on continuous basis for a minimum quantity. The maximum spread and the minimum quantity can be decided by the exchange and the market maker.
Some of the significant features that characterise LEIPS are as follows:
$ It is the first of its kind liquidity-enhancement programme in the country
$ It is a transparent and all-inclusive programme
$ It offers incentives for trading and open incentives
$ It has the lowest transaction fees in the country
Algo trading is an automated facility where trading is carried out by computer driven algorithms designed by traders. Instead of the traders manually doing so, it is these algorithms that determine which orders – to buy or to sell – get booked. The high speed – transactions can take as little as 18 microseconds – at which such trading takes place, gives it a competitive advantage over conventional manual trading. While a single trader can manually handle at best a portfolio of around Rs 5 crore, an algo trader, working alone, can cope with Rs 50 crore to Rs 55 crore.
Algo trading started in India in 2005. But it was only in 2008, after the Securities and Exchange Board of India (SEBI) allowed Direct Market Access, or electronic interaction with the order books of exchanges, that this facility started gaining wide acceptance. Today, around 16 to 17 per cent of trading on the Bombay Stock Exchange (BSE) and National Stock Exchange is algorithmic, with about 80 to 90 companies engaged in it. But many believe that in the next three to four years, the proportion could rise to 60 to 70 per cent.
Algo trading calls for two kinds of skills: strategy or domain knowledge, and code development. Domain knowledge means knowing stock trends in different sectors thoroughly, while code development requires a strong command of programming languages. Indeed, a background in coding is in high demand.
High Frequency Trading or HFT is a form of automated trading which cashes in on fleeting market opportunities through a deluge of orders executed in fractions of a second. Positions may be held only for minutes, the ‘portfolio’ is churned furiously and no position is carried overnight!
Given that they are chasing minuscule gains from high volumes, high-speed traders gain by shortening their execution time to a few milli-seconds.
Stock exchanges around the world (and in India too) have actively aided and abetted HFT by allowing market players to rent ‘co-location’ facilities at the exchange itself.
With their terminals huddled close to the exchange’s servers, co-located members — through fibre optic connectivity — execute trades at a fraction of the time that others do.
Technology has become central to our lives. It is also increasingly driving the way we invest. Quant funds use algorithmic, or algo, trading, in which computer software takes buy/sell decisions on the basis of preset formulae after extensive data crunching.
The process involves use of advanced mathematical models-based on parameters such as price movement, volume, earnings, financial ratios and growth-to take decisions in the market.
Quant funds have a data-driven approach. Typically, there is a model that automatically selects stocks based on various data inputs that may or may not include fundamental data.
Quant funds are at a nascent stage in India. Quantitative funds work best when you have a large liquid market, particularly for long-only quantitative investing. India has about 100 stocks with large trading volumes. This will increase as liquidity improves.