Auto Trade Engine

A. Connecting Scanner and Trading API

TradePoint Desktop trading terminal has two important features.

• 1- An Ultra Scanner
• 2- Trading API: Integrate

Ultra Scanner

Ultra Scanner is a multi-charting strategy scanner and one of its kind.

To access it, click Scanner -> Real-time scanner -> Ultra Scanner.

Below are the major features of the Ultra scanner:

• 1 – Select entry and exit conditions for any charting method
• 2 – There are pre-defined patterns and conditions to select from. You can create your own strategies in the system builder and select them for entry or exit in the Ultra scanner.
• 3 – Entry and exit can be done using different charting methods. Entry can be on one timeframe and exit on another and so on.
• 4 – You can define stop-loss, target or trailing stop-loss along with strategy conditions.

Please click here to read more about the Ultra scanner.

Integrate is an open source trading API of Definedge Securities.

That API can be used for other applications. It allows you to build trading and financial platforms, execute strategies and more.

Please click here to read complete documentation of the Integrate Trading API.

B. Introduction to Auto Trade Engine

Definedge Autotrader combines both of these features for you and makes the process as easy as possible. With the Auto trade engine, you can connect to the Definedge API even if you do not know any programming knowledge.

Auto Trade engine helps you connect with the Definedge API and Ultra scanner. You can select your strategies in the Ultra scanner and place orders via the auto trade engine.

Before we discuss steps to perform it, let us help you understand Auto Trade engine.

Go to Scanner -> Auto Trade Engine

There are four ways to add the symbol in Auto trade engine:

• 1 – Add symbol
• 2 – Import CSV file
• 3 – Load from the Group.
• 4 – Add Multi-leg symbols

Before these options are explained, let’s discuss other important fields related to it.

C. Important fields

You need to define strategy id, quantity, symbol and order remark in each of these methods. Let’s understand them.

Strategy ID

You will have to define a Strategy ID in each of these methods.

Strategy ID is the ID code for the strategy you want to run. It will be linked to the Ultra scanner with that ID. You need to define the strategy ID. Strategy ID can be anything numeric, alphabetical or alphanumeric of your choice.

Quantity

You can define quantity or amount of the stock in the auto trade engine while adding symbols.

For example, if you want to place a trade of 100 quantity irrespective of price, put 100 in the quantity column. In case you wish to place an order for Rs. 100000/- irrespective of the price, put 100000 in the amount column.

Consider the example of buying ABC stock at a price of 100. If you mention quantity 100, order will be placed for 100 quantities. If you mention 25000 in this column, the order will be placed for 250 shares (Amount 2500 divided by price 100).

Order remarks

There are order remarks you can write while adding symbols to the auto trade engine. When analysing trade performance in my accounts’ trading journal, these remarks can be very helpful.

You can select this condition in the trading journal and check the performance of these trades for the selected period.

Access the trading journal from My accounts -> trading journal

D. Add symbols

There are four ways to add symbols. Let's discuss adding a stock group in the auto trade engine.

Load from Group

Load from Group is the easiest way to import multiple symbols if your source symbol and target symbol are not different.

TradePoint offers many pre-defined groups in all market segments. You can create your own group using TradePoint Group Manager.

Go to Engines -> Manage Data -> Group Manager to do so.

Select Strategy ID, Exchange, Action and Order remarks.

Select Group of stocks in which you want to place order if the entry or exit conditions are met.

Select a quantity or an amount. The same quantity or amount will be considered for each order.

Please note: If it is a F&O segment, quantity is the number of lots and amount is the contract value.

Auto trade engine focuses on the order management and execution. The entry and exit conditions are defined in the Ultra scanner.

In the F&O segment, you can also select an Options ATM scanner for this option.

Options ATM Scanner

When uploading a group in the Auto trade engine, you can click on the Options ATM scanner. It will be linked to Options ATM scanner instead of Ultra scanner in that case.

Go to Scanner -> Real-time scanner -> Options ATM scanner

Options ATM scanner is the same as the Ultra scanner with one difference. Here, the group of stocks is the underlying. Your selected entry and exit conditions will be displayed on the ATM Call and Put Options chart.

For example, Nifty appears in the group of stocks you select. Scanner will check the entry and exit conditions in the ATM option of Nifty. ATM call or put option, wherever the signal is qualified, it will be added to the entry option of the Options ATM Scanner .

When ATM option is enabled in the Auto engine while uploading the group, orders will be placed in the ATM option.

In the Options ATM scanner, you should provide the same strategy ID that you defined when loading a group of symbols.

When you add a symbol, you also define the exchange, order type, and quantity or amount for which you wish to trade.

E.Auto trade engine Order setup

You can define the Max option positions that you want to keep. Further entry orders will not be placed once this limit defined by you is hit.

Max Loss (P&L) is the maximum loss you can define. Target P&L is a the target profit. Upon reaching Max loss or Target, Ultra scanner will stop. It will not take further entry signals.

If you want to auto square off all open positions when the target or stop-loss is hit, click on the auto square off button.

Open positions, realised P&F, unrealised P&L and total P&L tabs will show real-time calculations of the strategy you are running in the auto trader. Please note: The P&L calculation gets updated in every 15 seconds.

You can remove any scrip by the Auto trade engine if you don’t want to run auto trade engine on that scrip. You need to manually exit that stock in that case.

F. Steps to follow

Now, you have a clear understanding of how to use Auto trade engine.

You also know how to run an Ultra scanner.

It is possible to connect both of them and execute your trading strategies through them. Below are the steps to achieve that.

• 1 – Open the Auto trader engine and add symbols and quantity or amount as explained above. Mention strategy ID while adding symbols.
• 2 – Start the Algo engine. This is linked with the Definedge Trading API.
• 3 – Open Ultra Scanner and select your entry and exit strategies as explained above.
• 4 – Ultra scanner and Auto trade engine are linked with strategy ID. Put the same Auto trade engine strategy ID in the Ulta scanner here and click on the box.
• 5 – Start the Ultra scanner. This will connect to the Definedge Trading API linked with the Algo engine.

Now your Ultra scanner and Auto Trade engine are connected. When conditions defined in the Ultra scanner are met, the order will be placed as directed.

You can also open multiple Auto trade engines and Ultra scanner for multiple strategy IDs.

Please note that you can define group of stocks in Ultra scanner and Auto trade engine as well. Orders will be placed based on groups selected in the Auto trade engine. Both places can have the same group. It is also possible to have limited symbols in Auto trade engine, but a large number in scanner group.

Let’s return to the Options ATM scanner.

G. Important terms & conditions

Auto trade engine facilitates connecting your strategies to the trading API for better execution. However, it needs your constant monitoring and intervention.

Please read the terms below carefully.

• 1. With Auto trade engine, you are connecting to API for placing orders that come under your scanner conditions.
• 2. The software is designed to connect with your scanner via API. But it doesn’t guarantee any profit or prevention of loss.
• 3. The past performance of software or any trading strategy doesn’t guarantee future results. Please study the scanner conditions carefully before using.
• 4. You should ensure that you have adequate knowledge and experience of trading before using this feature.
• 5. The performance of trades depends on the trading strategy you designed. We don’t recommend strategies. Please study your strategies carefully before implementing.
• 6. Order placement may fail due to technical issues or network connectivity. You are supposed to monitor the connectivity of the software.
• 7. TradePoint or any Definedge member will not be liable for any losses or damages occurred because of using this feature or any technical issue or any other reason for causing the trouble.

H. FAQ

Here are some questions you might have.