Systematic trading or Algorithmic trading now has become a way of trading for the many retail and institutional traders and investors. On NSE alone last year, almost 60% of the total volume generated by the NSE co-location facilities or by algos. However, We are still behind some of the mature markets like the US And UK where today, 90% of the volume is done by automated alogs.
Now One might be wondering, what type of algos they are having? Just to give you perspective there are market making algos, order execution algos, algos for rebalancing the index and many more. I will explain all types of algos in layman terminologies in another post afterwards.
Systematic trading provides a huge advantage over discretionary trading in my opinion. Yes, there are some very good discretionary traders out there but most of them are very experienced and pros in the field. Now, the point I am making here is that the biggest part of being successful in the trading business is controlling your emotions while making decisions, systematic trading is the best solution for it.
Let’s take the example of one very good fortune-500 company, Mcdonald. You can go to any store in the country and still there Maharaja Mac (Big Mac) will taste almost identical. Ever wondered how is this possible? What if the main chef at the outlet is on a holiday and another chef prepared a burger? No, it will still taste the same! Right? Because Ray Kroc was very smart about building Mcdonald, he developed a system for preparing burgers that is being followed by every chef in every store. Their system is so good that it defines how much mustard will go inside bread into which paper burger will be wrapped. And for the same reasons they are multinational multi-billion dollar fast food chains!
Likewise trading is also business and one must have business rules, systems upon which business can be built. But how to get this system or prepare a plan if one wants to establish business in the Indian financial markets?
Well, the same question came to the mind of Vishal Mehta and MarketScanner was born amidst pandemic in April 2020. At the start, it was just a blog explaining methodologies, ideas and quantitative research. But after one year, MarketScanner has evolved into a one stop solutions for the systematic traders across India.
First let me give a brief of each service and products that we offer and how you can take advantage of the same.
- Quantitative research and ideas for the system development
This is our blog, where we put out quantitative research and system ideas frequently. It is also followed by some proprietary trading firms in India.
Now if you have any system ideas and rules with you and you want to backtest it properly and professionally? We can backetst your system and can give you a complete result with all the details and trade log. Our clients include individual retail traders to some prosperity desk managing millions in assets!
- Trainings and webinar (Education)
If you are looking for a system that you can deploy in the market, then we occasionally conduct webinars. In each webinar, we disclose a fully mechanical system with all the rules. We not only share the system but also philosophy behind system development and its expectancy. Any system that we teach is actually traded by us with the real money.
- Algo Trading with Python (ATWP)
We are offering a complete course on Python. It will take you from very basic blocks of the python to automating your strategies on your own.
We have some ready-made semi-automated bots available for some of strategies that we trade and teach in our webinar, that you can obtain on a subscription basis. You can use it on your Zerodha account directly. You can check past performance and day-wise trade history at any time.
We are launching a platform called Discipline trader where we will offer many of our Algo strategies as fully automated bot service. Currently it is in the beta testing mode.
If you have some doubts or want to interact with fellow systematic traders, then we have a very good telegram community that you can join. You can ask questions to other members like “how much slippage I have to consider in the backtest” to “Which co-integrated stock pair is to select for the best optimized result”. The community is for systematic traders, by systematic traders!
How are the top systematic traders of India approaching this business?What are they up to? Is there a way to listen directly from them? You may be surprised but the answer is yes, we are launching a podcast where we will interview top systematic traders of India.
As I mentioned, it is a complete ecosystem for systematic trading and only for systematic traders.
This is some snaps of what people are saying about us over the internet!
I would like to wind up our journey with one beautiful quote (And yes I have taken liberty to put it on my word),
“It’s not only about how many bills we make, it’s always how many lives we touch while making these bills!”
Thank you to all of our readers, critics, users and mentors for believing and trusting us!