What is Algo Trading?
Algorithmic Trading (or Algo Trading) is the process of using computer programs or software to execute trades automatically in the financial markets based on predefined rules and strategies.
When Did Algo Trading Start in India?
Year of Introduction: 2008
Introduced by: SEBI (Securities and Exchange Board of India)
First Exchange: NSE (National Stock Exchange)
How it began: With the launch of Direct Market Access (DMA) for institutional clients. Since then, algo trading expanded to retail traders through broker APIs like Zerodha, Angel One, Upstox, and others.
History of Algo Trading in India — Timeline
| Year | Development |
|---|---|
| 2008 | SEBI introduced Direct Market Access (DMA), allowing institutional traders to place orders directly on the exchange using algorithms. |
| 2010 | Smart Order Routing (SOR) launched, allowing algorithms to automatically route orders to the best-priced exchange. |
| 2012–2015 | High-frequency trading (HFT) and co-location facilities gained popularity among brokers and proprietary desks. |
| 2017 onwards | Algo trading volume grew rapidly — a large portion of derivatives market trades became algorithm-driven. |
| Today | Retail participation is rising, with platforms like Tradetron, AlgoTest, and broker APIs making algo trading accessible to individual traders. |
Sources / Tools Needed for Algo Trading
Definition: An option with no intrinsic value that would result in a loss if exercised immediately.
Algo Software: A platform (for example, BestAlgoAI) that executes your trading logic.
Strategy: Your trading rules (e.g., “Buy when RSI < 30 and price crosses EMA”).
Broker API: Connects the software to your trading account (examples: Zerodha API, Angel One API).
Market Data: Real-time price feeds from brokers or third-party data providers.
Charts / Indicators: Tools used to build or validate strategies (e.g., TradingView, built-in chart libraries).
Automation Setup: VPS or always-on PC to keep the algo running 24/7.
About Our Software — BestAlgoAI
BestAlgoAI is a powerful, user-friendly algorithmic trading software built for both beginners and professional traders.
Key Features
\
No Coding Required: Simple UI to set up strategies without programming.
\
Works with Major Brokers: Integrations with Zerodha, Angel One, Upstox, and more.
\
Multi-Instrument Support: Options, Futures, Equity, and Index trades.
\
Risk Management Tools: Stop loss, target, trailing stop loss.
\
Real-time Notifications: Alerts via WhatsApp and Telegram.
\
Backtesting & Paper Trading: Test strategies on historical data and simulate before going live.
How BestAlgoAI Works with Your Account
\
Register and create your user account.
\
Enter your broker API key (provided by your broker).
\
Select or create a trading strategy in the UI.
\
Start the algo — the system handles entries and exits automatically.
\
Monitor and manage trades from a user dashboard (performance, logs, alerts).
Note: Your funds remain in your broker account. BestAlgoAI only executes orders through the broker API; we do not hold or control user funds.
Quick Example Strategy
Moving Average Crossover (example):
– If 50-day MA crosses above 200-day MA → BUY
– If 50-day MA crosses below 200-day MA → SELL
– Use stop-loss and target to manage risk
Want this content adapted for your website (SEO-optimized, meta tags, and images included)?
Last updated: 2025
Comments
Join the discussion and share your thoughts
