Uploaded on Sep 14, 2023
Trading using Algo platforms is gaining popularity among traders and investors since it includes less manual execution and more technology. Algorithmic trading, also known as Algo-trading, executes trades when pre-programmed specified instructions are satisfied, generating profits at a pace and frequency that a human trader cannot match.
Best intraday algo strategy
Best intraday algo strategy
Humanity has become overly reliant on technology. If today's generation tries to
live the life that our forefathers once lived, trade like the time of Harshad Mehta,
it won’t just be possible. Going back in time will be neither conceivable nor
simple since today's masses have gotten accustomed to advancement.
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So what is Momentum Trading?
Momentum trading strategies look for
opportunities in short-term asset price
movement and try to profit from market
volatility. The primary idea is that if an
underlying price is rising, it will continue to
rise, and vice versa. Momentum trading is a
strategy in which investors/traders buy
securities at higher price and sell those
securities even higher. This strategy is
opposite to value investing.
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Intraday strategy which uses Aroon indicator
There are many best Intraday Algo strategies
on AlgoBulls which uses Aroon indicator with
various risk appetite, capital requirement,
duration and profit profile. One of
the Algo strategy has been mentioned below.
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Algo bulls strategy- STAB671
This is an intraday Aroon Indicator
Trading Strategies that is employed on the
Bank Nifty. According to the description, the
strategy works with Aroon Up and Aroon
Down crossovers. When the Aroon Up
indicator crosses over the Aroon Down
indicator, a buy signal is triggered. Sell
signals are triggered when the Aroon Up
crosses below the Aroon Down.
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What is the Aroon Indicator?
Aroon Indicator is a technical indicator used in securities trading in
the financial market that was developed by an Indian-American author,
businessman, and economist, Tushar Chande in 1995. He introduced this indicator
in the book "The New Technical Trader". The phrase Aroon was derived from the
Sanskrit word which means “dawn’s early light. The Aroon Indicator is a trend-
following indicator that was designed to gauge the strength and direction of a
trend and to signal the beginning of a new trend.
The Aroon indicator consists of two components: Aroon up and Aroon down,
sometime known as the bullish Aroon and bearish Aroon.
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How to use Aroon Indicator
It’s easier to use Aroon Indicator, when the two lines Aroon indicator run parallel
to each other - or in the case of single line indicator, when values stood near or at
zero - they are used to predict ranging or consolidating markets. Signals from the
Aroon indicator can be used to provide trading signals, if the bullish Aroon line
crosses the bearish Aroon line or vis-a-vis, it is often viewed as the start of a
change of trend.
The Aroon, like most momentum oscillator indicators, is prone to producing
misleading indications during a volatile market.
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Aroon Indicator: Formula, Calculations
Number of formulas and technical it looks, yet, it is not as difficult as rocket
science. It needs that the high and low prices of an asset to be tracked
during the number of periods utilised in the calculation.
1. Keep track of the asset's price highs and lows over the past 25 periods.
2. Take note of how long it has been since the last high and low.
The Aroon oscillator is plotted in a separate window that shows price action.
The indicator value oscillates between 0 to 100.
Formula for Aroon up and Aroon Down
Aroon-Up = ((25 – Days Since 25-day High)/25) x 100
Aroon-Down = ((25 – Days Since 25-day Low)/25) x 100 www.moneysukh.com
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The Single Line Aroon Indicator
The Aroon indicator is available in a Single-Line Aroon Oscillator form. It has
a scale of -100 to +100. If the Aroon oscillator is around the middle Zero-
Line. Values around the middle zero line in the single indicator suggest the
absence of a trend, a market that is ranging, or in a consolidation phase.
Values more than +50 suggest a bullish trend, while values less than -50
indicate a bearish trend.
The market is consolidating and drifting sideways. When they are above
+50 or below -50, it indicates a bullish or bearish trend.
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