Trading Psych

Open acct in Alice blue without acct opening charges and AMC charges

https://ekyc.aliceblueonline.com/?source=KB124A

24050, mentioning this level for the past 3 months

Remember?

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Indian Market Crash Chronicles

Insurance stocks plunging: Are Indians now immortal?
Auto stocks tanking: No bikes or cars? Walking is the new trend!
Paint stocks diving: Decorating homes? Nah, who needs walls anymore!

Punchline: Fundamentals wiped out, and so is logic! 🤷‍♂️

Here’s an overview of specific algorithmic trading strategies and popular platforms you can explore:


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Popular Algo Trading Strategies

1. Trend-Following Strategies

Objective: Capture profits from market trends (up or down).

Example:

Use moving averages (e.g., 50-day & 200-day) for crossover signals.

Buy when the shorter moving average crosses above the longer one (Golden Cross).



2. Arbitrage Strategies

Objective: Exploit price differences in different markets or instruments.

Example:

Cash-Futures Arbitrage: Buy stocks in the cash market and sell futures if there's a price discrepancy.



3. Mean Reversion

Objective: Assume prices revert to their average over time.

Example:

Identify overbought/oversold conditions using Bollinger Bands or RSI.



4. Market-Making

Objective: Provide liquidity by placing buy and sell orders at different levels.

Example:

Continuously update bid and ask prices to profit from the spread.



5. High-Frequency Trading (HFT)

Objective: Execute thousands of trades in milliseconds to capitalize on small price movements.

Requirements:

Co-location servers near exchanges for ultra-low latency.



6. Sentiment Analysis

Objective: Analyze news, social media, and other sources for market sentiment.

Example:

Use AI to determine positive or negative sentiment and trade accordingly.




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Popular Algo Trading Platforms

For Indian Markets (NSE/BSE)

1. Zerodha Streak

No coding required.

Create and backtest strategies using a drag-and-drop interface.



2. AlgoTrader

Supports multiple asset classes.

Ideal for institutional traders.



3. Amibroker

Powerful charting and backtesting tools.

Requires some coding knowledge (AFL scripting).



4. Tradetron

Cloud-based algo trading platform.

Allows you to build, backtest, and deploy strategies visually.



5. SmartAPI by AngelOne

API for traders who want to code their own algorithms.

Compatible with Python and Java.





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Global Platforms

1. MetaTrader 4/5 (MT4/MT5)

Popular for forex and stock trading.

Uses MQL language for custom strategy development.



2. QuantConnect

Open-source algo trading platform.

Supports Python and C#.



3. Interactive Brokers API

Powerful APIs for professional algo traders.

Allows integration with custom software.



4. TradingView

Script strategies using Pine Script.

Visualize and automate ideas.





---

What You Need to Start Algo Trading

1. Knowledge:

Understand markets and strategies (technical/fundamental analysis).



2. Tools:

A brokerage account supporting APIs.

Data feed for real-time and historical market data.



3. Skillset:

Coding knowledge (Python, C#, or Java).

Familiarity with backtesting tools.



4. Capital:

Algo trading often requires minimum capital due to brokerage requirements.

Algorithmic trading (or algo trading) in stock markets refers to the use of computer programs and algorithms to execute trades automatically. These programs are designed to follow defined sets of rules for placing, modifying, and closing orders. Here's a breakdown of how it works:


---

1. Input Data

Market Data: The algorithm uses real-time market data (prices, volumes, trends, etc.) as its input.

Historical Data: Backtesting the algorithm on historical data helps refine strategies.



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2. Decision-Making

Algorithms use predefined rules to make trading decisions. These rules are based on:

Technical Analysis: Indicators like moving averages, RSI, MACD, etc.

Fundamental Analysis: Earnings reports, news sentiment, macroeconomic factors.

Quantitative Strategies: Statistical arbitrage, mean reversion, etc.

Price Action: Trend-following or breakout strategies.



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3. Execution

The algo sends buy/sell orders to the exchange automatically.

Types of Orders: Market orders, limit orders, stop-loss orders, etc.

Speed: High-frequency trading (HFT) executes thousands of trades in milliseconds.



---

4. Risk Management

Algorithms include risk management rules to prevent losses:

Stop-loss levels.

Position sizing.

Diversification strategies.



---

5. Optimization

Algos are tested (backtesting) and adjusted using historical data.

Machine learning or AI is sometimes used for adaptive optimization.



---

Example of Algo Trading Strategy

Mean Reversion:

Rule: If the stock price deviates significantly from its average (moving average), buy low and sell high.

Algo monitors prices, identifies deviations, and executes trades instantly.



---

Benefits

Speed: Executes trades faster than human capability.

Accuracy: Eliminates emotional decision-making.

Cost-Efficiency: Reduces manual trading costs.


Challenges

Over-Optimization: Can lead to poor real-world performance.

Market Risks: Sudden volatility can cause losses.

Technical Glitches: Bugs in the algorithm may lead to unintended trades.

SEBI plans to update algo trading norms to enhance market integrity and investor safety. Brokers now need exchange approval to offer algo services. A draft circular proposing new rules is open for public feedback until January 3, marking a significant regulatory shift.

How to Stay a Losing Trader (Like the 95%):

1️⃣ Never take risks (stay in your comfort zone).

2️⃣ Take risks you don’t understand (gamble instead of trade).

3️⃣ Trade without a mentor (guaranteeing you repeat the same mistakes).

Revenue Secretary Sanjay Malhotra has been appointed as the new Governor of the Reserve Bank of India (RBI). He will succeed Shaktikanta Das, whose term concludes on December 10, 2024. Sanjay Malhotra, an IAS officer from the 1990 batch, will serve as the 26th Governor of the RBI. His tenure is expected to begin on December 11, 2024.

Open acct in Alice blue without acct opening charges and AMC charges

https://ekyc.aliceblueonline.com/?source=KB124A

A cut in the Cash Reserve Ratio (CRR) by the Reserve Bank of India (RBI) typically has a positive impact on stock markets. Here’s why and how this 50 bps reduction to 4% might affect markets:

1. Increased Liquidity

By releasing ₹1.1 lakh crore into the banking system, banks will have more funds to lend to businesses and individuals.

Increased credit availability can stimulate economic activity, leading to higher corporate earnings and growth potential, which is favorable for equity markets.


2. Lower Cost of Borrowing

With banks having more liquidity, the competition to lend often drives down interest rates, making borrowing cheaper for businesses.

Lower financing costs can lead to expansion and better profitability for companies, especially in interest-rate-sensitive sectors like real estate, banking, automobiles, and infrastructure.


3. Boost to Banking Sector

Banks benefit directly as they can deploy the excess funds through loans or investments. This improves their Net Interest Income (NII) and profitability.

Banking and NBFC stocks are likely to rally on this news.


4. Positive Market Sentiment

Such measures signal the central bank's intention to support economic growth, boosting investor confidence.

Domestic equity indices like Nifty 50 and Sensex may see upward momentum, particularly in sectors tied to economic growth.


5. Possible Rise in Inflation

While the increased liquidity can drive growth, it also carries the risk of inflation if not absorbed productively.

Over time, concerns over rising inflation may lead to speculation about tightening measures, which could temper the market's bullish sentiment.


Sectors Likely to Benefit

Banks and NBFCs: Increased liquidity and potential credit growth.

Real Estate: Lower interest rates may boost demand for housing loans.

Consumer Discretionary: Enhanced spending due to increased disposable income.

Capital Goods & Infrastructure: Access to cheaper credit for expansion projects.


Immediate Market Impact

The market could react positively in the short term due to optimism about liquidity and growth prospects.

However, much will depend on the global sentiment, inflation expectations, and how banks deploy this liquidity.


If you are trading stock futures, consider focusing on banking and rate-sensitive sectors, but keep an eye on inflation indicators and global cues for potential risks.

I think everyone has observed this and seems like buying it for tomorrow..

Kahin ulta na pad jaaye😂😂

Kal ka tayyari badiya hai

Except this data, no other data points are showing any positive sign, it's just a guess work.

All world indices are in Red

Forgot to inform..

In the last 5 years, Bank nifty has opened a gap up on muhurt Trading,

If you can pick some ATM or ITM at your risk

Happy Deepawali ..

ಬೆಳಕು ಸದಾ ನಿಮ್ಮೊಂದಿಗಿರಲಿ, ದೀಪಾವಳಿಯ ಶುಭಾಶಯಗಳು ❤️

Booked 100% in Nifty short, Nil position

24195 acting as strong support,

24149 should not break,

If it does and close below it, 23845 iss confirmed

Free fall in Banknifty

For clear understanding, keep level as 24191

Below 24195 for 5 mins..

24149 target

#bankniftyfuture Next target 51630

Momentary touch down low at 24192 in Nifty future.

No shorting..atleast not abv 24195

24195 is support area for Nifty future

We need 15 mins below 51861 in Banknifty future for further fall

We might see a recovery from here..

Atleast DO NOT SHORT BANKNIFTY at these levels

This is a monthly expiry contract, watch spot

Look at the volume

Reason for booking profit, will look for opportunities below low, else Nifty future will recover

Just For fun but harsh truth

The support Banknifty has taken at 50390 is like😘😘


50390 was a very imp level in daily chart..

What an recovery

Disclaimer: iam not suggesting any option buying

Quick and sharp recovery is pending..

Particularly in banknifty..

If not today then Monday or Tuesday..

Added Axis Bank to portfolio @ 1185

Well, well, well, seems like banknifty did not save itself from the disaster, but your portfolio.

Thank her.

#banknifty future ultimate support at 50390,

Shouldn't close below it today...

Happy to know.. ❤️

Seems like most of you are in loss or none are trading..

Which is correct?

Now at 15₹

From 40-67 to 15..

Free fund Paisa..

80100 ce at 42₹..

700 pts away

Life is wonderful

24183 is also done...

If 50470 is achieved..

The next new moon is on 1 oct..

So 3 days of buying up to Wednesday is not ruled out .

I will buy 50% today

Now gates open for 50470 #banknifty

From 85 to 25.. 60 pts in selling

Now at 24, book profits

European markets holding strong

24380 is real

It's a dead market, bulls might come back once..

Better not to trade

The way 24300 ce is holding, I doubt nifty spot breaching 24380 levels.. if it does I will update

Holding nifty with cost SL

Booked profit in Banknifty short

51570 is a huge support..

Can't break, if it does.. then ..?

The price movement of Nifty futures is similar to that of illiquid stock options, with minimal movement and a large bid-ask spread.

Trailed my SL to cost

Iam shorting these.. cant provide exact sl for bn.. sorry

Both index at resistance.. but abv 51877 for 15 mins.. another 300 pts is sure in Banknifty future

Keeping sl of 24521

Avg is 24480

Added more

Selling in small qty again

BTW, usage of emojis in telegram is free for all, you are not charged for appreciating my analysis 😜

24403 done

The struggle of Nifty at 24455 level is as real as Ananya Pandey's struggle😄

24455 is laxman rekha for bulls,

My heart says

Below 24730,

24640-24599

#niftyfuture

24730 has a good support.. further down move needs 15 mins close below 24730, else, no down move

DO NOT SHORT MARKET FROM HERE!!!!

Rare sighting

Look at the mid cap index and associated options movement.. spine chilling

500 pts in #Nifty Alone is not a joke, it's not in a retail traders capacity and capabilities

There are good days,
there are bad days,
and then there's a whole different level:
the market-takes-us-down day.

HDFC Bank has no immediate resistance

My trade is over for the day

The 5 Second Rule, popularized by Mel Robbins, is a psychological tool to help you take action on your goals or intentions before your brain talks you out of it. The idea is that when you have an instinct to do something (like exercising, starting a project, or speaking up), you must physically act within five seconds or your brain will come up with reasons to delay or avoid it (like fear, procrastination, or doubt).

By counting down from 5 to 1 and then immediately taking action, you interrupt the habit of overthinking and hesitating. This simple countdown helps shift your focus from your thoughts to action, overcoming the brain's tendency to stall progress.

If you’re a *profitable trader*, you’re already a millionaire,
it’s just a matter of time before it shows.

Seems like HDFC has posted good results

New lot size

Book profits

Upto 25080, there is no resistance

#niftyfuture

All premiums got adjusted

Short covering upto 81550-81610

Short covering