Scalping

Build Scalping Strategy based on Spot, Future and Option Premium Points.

Mostly, Scalping Strategy is deployed in the Range-Bound or Consolidation Phase to win from the smaller counter move in a larger trend, however it is difficult to predict the Trend Breakout timeline.

Therefore, at ModernAlgos – all of these can be defined in advance with various features, covering both Consolidation and Breakout phase in the Trend, one can provide all the input conditions for the strategy and submit it then our system will do the Live Computation and upon triggers, automatically orders will be fired to Broker Account for the Order Execution.

Scalping - Salient Features at ModernAlgos

Create Intraday or Positional Strategy
Initial Order with Order Slicing
Time Based Strategy Creation
Scalping Parameters based on Spot, Future and Option Premium
Leg wise Target/SL OR Continuous Buy/Sell
Range Basis Entry in Scalping
Custom Scalping – Entry/Exit based on Pre-defined Spot Price
Order Parameters with Slicing
Overall Target/Stop Loss with Trailing Logic

Pre-requisites for the Strategy

Daily log in to be done at ModernAlgos
Strategy(ies), which are market ON in “Auto Strategy Dashboard” under Trader Dashboard (Can be accessed from Product Page), shall be computed in the LIVE Market.

Mode of Period

One can create Scalping Intraday or Positional basis and if it is done Intraday, then it will be exited automatically at 03:10 pm

Initial Order with Order Slicing

One can define his Initial Order for the selected Symbol and it can be configured for EQ, Futures, CE, PE Segment. You may define any quantity to enter and then slice it based on:

Step Quantity – it will divide your entered quantity and create multiple orders automatically
Slicing Range – you can also define the range based on “Spot” OR “Future” OR “Premium” basis to enter in to the market. If market moves outside the range then it will stop and again start, once it comes back in the range.

All the orders will be sent as Market Orders ONLY.

Example:
If you select Nifty CE 17200 (Expiry – weekly/monthly), Qty – 1000, Step Quantity – 200 and Range – 17000-17400 Spot Basis.

It will break your order in 5 orders of 200 Qty Each and continue to build the positions until market is in the range of 17000-17400, if market moves away from the given range, then it will stop and again start once it comes back within the range.

Time Based Strategy Creation

Create your scalping strategy with Pre-defined Start and End Time, then you can select the days – when you wish to deploy the strategy and also available for both Weekly and Monthly Expiry.

Example:
You wish to deploy a Scalping Strategy only on Wednesday/Thursday in weekly expiry (Intraday only), it can be created in simple steps, as listed below:

Enter the desired Start and End Time
Select the Days as Wednesday and Thursday
Select the Expiry as “Weekly”
Select Intraday button on Top

All set! System shall compute based on your inputs and once conditions are met then it will fire the orders automatically.

Likewise; you can create for positional as well with the pre-defined Start and End Time

Scalping Parameters

Here, it comes the most important part of the Strategy i.e., Scalping Parameters, key features are as under:

Define Up/Down Points based on Spot OR Future Points for adding the position
Define Leg Wise Target/Stop Loss OR Continuous Buy/Sell
Enter number of times for adding the position for both Up and Down Conditions
Define Range based on Spot OR Future Points to Enter into positions

Example 1:
Scalping Parameters with Leg Wise Tgt/SL

Check out the Simple Steps:

Choose Future or Spot Points basis
Enter Up/Down Points, let’s say 50 points from Current Market Price
Select Expiry, Instrument Type (CE, PE, FUT or EQ)
In case of CE, PE – Select the Strike, based on ATM or ATM +/-
Enter Quantity for each leg to be entered
Select Leg-Wise TGT and SL Point (Point OR % basis)

Example 2:
Scalping Parameters with Continuous Buy/Sell

Check out the Simple Steps:

Choose Future or Spot Points basis
Enter Up/Down Points, let’s say 50 points from Current Market Price
Select Expiry, Instrument Type (CE, PE, FUT or EQ)
In case of CE, PE – Select the Strike, based on ATM or ATM +/-
Enter Quantity for each leg to be entered
Select Continuous Buy/Sell Option

No of Times

Define no of times Entry, basis on that System will fire the order.

Example:
If you’ve entered 3 times then it will Enter into positions for 3 times and then will stop automatically and entered positions will be managed based on the given Overall Tgt/SL conditions.

Define Range

Enter the Range, in which you wish to do Scalping

Example:
If you’ve entered Spot Price between 17000 – 17200 then, above conditions will be computed with in the given range, if market moves away from the range, then entry will auto stop and start again, once market comes with in the given range.

Very Imp Points:

Up/Down Points calculation shall start from the Reference Price (i.e. Price at the time of submitting the strategy)
Leg Wise Tgt/SL shall be applicable based on the entered price.
No selection done for Leg Wise Tgt/SL OR Continuous Buy/Sell then based on Target/StopLoss at the bottom, Strategy PL will be computed.

Let’s explore Add Ons –

Custom Scalping

It will help you to enter at the break out levels and can do it along with the Scalping Strategy or individually as well.

It can be done based on the Spot OR Future OR Premium Points Basis

Check out the Simple Steps:

Choose Spot OR Future OR Premium Points basis (let’s say Spot Basis)
Enter Spot Price (Eg: Nifty 17000)
Select Buy/Sell
Select Expiry, Instrument Type (CE, PE, FUT or EQ)
In case of CE, PE – Select the Strike
Enter Quantity for each leg to be entered
Enter Spot Price for TGT/SL

Example:

If you think, NIFTY Breakout Level is 17000 and trend may continue till 17200 – to configure this, you may Input 17000 for Entry, TGT 17200 SL 16900 Spot Price

Once market crosses 17000, based on the Qty entered, orders will be fired and if Market reaches to 17200 mark; then the positions will be exited.

Order Parameters

This allows you to specify the Order Type for Entry and Exit, as well as the Trigger% and Waiting Time Options.

You can also do Order Slicing. You can enter any quantity and then slice it based on Step Quantity. It will automatically divide your entered quantity and create multiple orders.

Overall Target and Stop Loss

You can define your strategy’s Overall Profit Conditions with a Fixed Amount in this section. When the target is reached, you can apply Trail Profit/Stop Loss conditions and also use the Trailing Option to lock in your profit. Along with it you can define your strategy’s Overall Loss condition and exit all at once.

Example:

If you have set the Fixed Profit to 2000, Stop Loss to 2000, and you want to Lock and Trail Profit. You define here that if Profit reaches 1000, then lock profit at 500. And for every 1000 increase in profit, trail minimum profit by 500.

So, if the market rises and reaches a profit of 1000 Rs., the minimum profit will be locked at 500 Rs. If the profit reaches 3000 Rs., it will start trailing the profit and set the minimum profit to 2500 Rs. It will continue to trail in this manner. And if the market falls to a loss of 2500 Rs., the trailing stop loss will be triggered and the position will be closed.

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