Automatic Algorithmic Trading Application Development company

Automate stock trading and Be first to reap the benefits of Algorithmic trading with Chennai’s top Algorithmic trading application development company

Algorithmic trading application development company
Algorithmic trading application development company

What is Algorithmic Trading application development ?

Algorithmic trading application development refers to the development of apps capable of executing orders automatically based on pre-programmed trading instructions, taking into account various factors such as price, time, and volume. Essentially, an algorithm is a set of instructions designed to solve a problem. In the context of algorithmic trading, computer algorithms are utilized to divide larger orders into smaller pieces and send them to the market gradually.

How does Algorithmic Stock Trading work ?

Algorithmic stock trading application makes decisions regarding buying or selling financial instruments on an exchange using complex formulas, mathematical models, and human monitoring. High-frequency trading technology, which allows a company to execute tens of thousands of trades per second, is frequently used by algorithmic traders.

Examples of Algorithmic Trading Methods

Order execution, arbitrage, and trend trading methods are examples of the many instances where we can apply algorithmic trading.
  • Algorithms based on processes and rules are used in algorithmic trading to implement trading strategies.
  • Since the early 1980s, it has become much more widely employed by institutional investors and big trading companies.
  • While algorithmic trading has benefits like quicker execution times and lower costs, it can also accentuate the market's negative tendencies by resulting in flash crashes and a sudden loss of liquidity.
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Why invest in Algorithmic Trading software development ?

automated stock trading app development company

Driving Factors for Algorithmic Trading applications

Positive regulatory regulations, expanding demand for swift, dependable, and effective order execution, increased demand for market surveillance, and decreasing transaction costs are expected to drive the need for the algorithmic trading business. Large brokerage companies and institutional investors use algorithmic trading to cut down on bulk trading costs. Furthermore, advancing financial service algorithms and artificial intelligence (AI) would lead to lucrative market expansion potential. It is also projected that a surge in demand for cloud-based solutions will aid in the market expansion for algorithmic trading.

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The Growth of Algorithmic Trading softwares

Algorithmic trading has dominated the capital markets, particularly the trading business, in recent years, notably in the last ten years, due to the enormous development of FinTech tools that have increased the capacity of the financial industry. Today, everyone has access to computational power, high-speed internet, and data science tools. The availability of trading financial products has risen due to the spread of online trading platforms and apps. It merely requires a few mouse clicks to trade stocks and currencies.

Algorithmic trading mobile app development company

Impact of Technological Advancements

The widespread usage of AI, ML, and big data in the financial services sector is anticipated to impact the market growth for algorithmic trading substantially. Because of technological advancements, authorities now pay close attention to how customers engage with the market. Some of the world's central banks started utilizing such technologies to advance Algo trading. Moreover, because buy and sell orders are placed quickly and automatically without human involvement, algorithmic trading can maintain extraordinarily high market liquidity. Over the past 2 years, there has been a surge in the use of algorithms across asset classes, especially cross-asset automation.

Algorithmic trading application developers

The Role of Algo Trading During the Pandemic

The erratic market conditions, high trading volume, and demand for speedy digital transformation to deal with remote working situations have all contributed to a surge in algorithmic trading. During the COVID-19 pandemic, algo trading increased because more sophisticated routing and electronic algos were required for regionally distributed trading to perform properly and provide liquidity for traders. Furthermore, the pandemic days had a favorable impact on the growth rate of the algo trading industry because there is an increasing trend toward algorithmic trading, which makes quick decisions while minimizing human errors.

How Does Algorithmic Trading Perform ?

Algorithmic trading makes decisions regarding buying or selling financial instruments on an exchange using complex formulas, mathematical models, and human monitoring. High-frequency trading technology, which allows a company to execute tens of thousands of trades per second, is frequently used by algorithmic traders.

The 200-day value and 50-day moving average form the main layout. The algorithm comprises a specified structure that makes it possible to buy when the value is higher than the moving average. When the moving average is less than the value of the 200-day moving average, an algo trading platform automatically sells the stock. As an Algorithmic trading mobile app development company, we can deliver this automated scalability perfectly.

Algorithmic trading application developers
Algorithmic trading application developers

Backtesting features and
technical indicators

Backtesting establishes the prior performance of a trading strategy or pricing model using historical data. The essential premise is that a strategy that has previously succeeded is to succeed again, and an approach that has previously failed is equally likely to fail in the future. Setting aside a period of historical data for testing when testing a hypothesis on historical data is advantageous.Testing it on different periods or out-of-sample data might help confirm its potential viability if it is successful. Before investing real money, a trader can backtest a trading strategy by simulating it with past data to create outcomes and assess risk and profitability.
Traders can be certain that a strategy is fundamentally good and is likely to produce profits when put into practice by looking at a well-conducted backtest that produces favorable outcomes. A well-conducted backtest that produces unsatisfactory outcomes, on the other hand, will lead traders to adjust or reject the strategy.

Concept of Trade Notion

A trade notion can be backtested as long as we can quantify it. To transform the concept into a tested form, some traders and investors might seek the assistance of a trained coder. Typically, a programmer would implement the concept in the trading platform’s proprietary language.
The programmer can add user-defined input variables, allowing the trader to “tweak” the system. The simple moving average (SMA) crossover mechanism illustrates this. The lengths of the two moving averages that make up the strategy could be inputted by the trader or altered. The trader might then do a backtest to identify the moving average lengths that would have had the best results on the historical data.
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Technical indicators

Technical indicators are representations of price and volume calculated theoretically and used to track a security’s price movement. Moving averages are one type of technical indicator that is used to determine a security’s trend.
A moving average is an average value for the specified data field over a specific number of successive periods, such as price. The average of the data is calculated by subtracting the oldest value and adding the most recent when new data becomes available.

Various Forms of Technical Indicators

Leading and lagging technical indicators make up the two main categories.
Algorithmic trading mobile app development company

Leading indicators

By sending out indications just as a trend is about to begin, leading indicators attempt to forecast the price of a security. These indicators lead the price movement because they calculate over a shorter time frame. The RSI and stochastic oscillators are two examples of well-liked leading indicators.

Algorithmic trading mobile app development company

Lagging indicators

After the trend has begun to reverse, lagging indicators that track the security price send alerts. Lagging indicators are the most frequently used moving averages. Additional categories for technical indicators include trend, momentum, volume, and volatility. And these fall into the leading or lagging categories.

Algorithmic trading mobile app development company

Trend Indicators

The lagging indicator known as the parabolic stop and reverse (Parabolic SAR) is used to identify trend direction and reversal.The Ichimoku cloud indicator aids in determining the direction, momentum, and support-resistance levels. It also functions as a trend and momentum indicato

Algorithmic trading mobile app development company

Momentum Indicators

Indicators of momentum are used to determine the direction and rate of price movement. Most momentum indicators employ a baseline or average to determine the trend's direction. Depending on the indicator's nature and calculation, we could interpret a price below the average or baseline as bullish or bearish.Moving Average Convergence Divergence (MACD): MACD can be used to spot trends since it depicts the relationship between 2 moving averages of a security's price. Stochastic oscillator: A leading indicator used to spot oversold and overbought situations.Relative Strength Index (RSI): RSI is a leading indicator to gauge how quickly and dramatically prices fluctuate. It is used to determine when a market is oversold or overbought.

Algorithmic trading mobile app development company

Volatility Indicators

Regardless of direction, these technical indicators gauge the speed of price change.Bollinger bands: Bollinger bands are simple moving averages of prices displayed above or below a certain standard deviation of the moving average. It is employed to determine a security's volatility and trend. Average True Range: shows how volatile prices are.

Algorithmic trading application development company

Volume Indicators

These technical indicators use traded volume to gauge a trend's strength.Chaikin Oscillator: Tracks money entering and leaving the market, which we can use to forecast tops and bottoms.On-Balance Volume (OBV): measures the degree of accumulation or distribution by evaluating the relationship between volume and price.

Paper trading

Algorithmic trading application development company

Practice Trading without Risk

Practicing buying and selling stocks is possible for investors through paper trading, a type of simulated trading. Before implementing a new investing strategy in a live account, we can test it through paper trading. Customers can open paper trade accounts with several internet brokers. Paper trades may not accurately reflect the true emotions that arise during market situations, but they teach beginners how to use platforms and place transactions.

Advantages of Paper Trading

The convenience and popularity of paper trading have increased with the development of internet trading platforms and software. With modern simulators, investors can trade real-time markets without committing any real money, and we can use the process to assess the viability of investment ideas. Customers can access paper trading simulators from online brokers, including TradeStation, Fidelity, and TD Ameritrade’s thinkorswim.
Algorithmic trading application development company
Algorithmic trading application development company

How to Maximize the Advantages of Paper Trading

To maximize the advantages of paper trading, trade placement and investment decisions should adhere to simple trading procedures and goals. The same risk-return goals, investment restrictions, and trading timeframe as would be used with a real account should be taken into account by the paper investor. For instance, it wouldn’t make sense for a risk-averse investor to engage in several short-term trades like a day trader.
We can also use paper transactions in a variety of market scenarios. As an illustration, a trade entered into a market with high levels of volatility is likely to incur higher slippage costs due to wider spreads than a market with orderly movement. Slippage happens when a trader receives a different price than anticipated between when the trade is initiated and closed.

Using Paper Trading to Practice Different Order Types

Investors and traders can practice simulated trading to become more comfortable with different order types like stop-loss, limit, and market orders. There are several platforms where you can access charts, quotes, and news feeds. However, paper trades may not accurately reflect the emotions that arise during market situations, but they can still be helpful in teaching beginners how to use platforms and place transactions.
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What are the APIs that iStudio technologies
have integrated for live trading ?

One of the most popular real-time stock data APIs available is the Yahoo! Finance API. This API is excellent for developers who wish to create their stock-tracking applications because of how well-liked it is. Data from the New York Stock Exchange (NYSE) and the Nasdaq Stock Exchange are provided by Yahoo! Finance (Nasdaq). The NYSE data is accessible for free. However, the Nasdaq data requires payment. You won’t obtain real-time data from Yahoo! Finance because its NYSE data is delayed by 15 minutes. The Nasdaq data, on the other hand, is ten seconds later.
automated stock trading app development company
Algorithmic trading mobile app development company
Google Finance is a popular real-time stock data API similar to Yahoo! Finance. FINVIZ, a stock analysis tool that can help you select stocks to invest in and keep track of your portfolio, powers this API. You must set up a FINVIZ account when you register for Google Finance. Once you’ve done that, you can access Google Finance with your FINVIZ account and get real-time stock data from more than 7,000 exchanges worldwide. When utilizing Google Finance, the name of the stock, the exchange listed, and the country exchange is located must all be provided.
A financial data API called Xignite provides information from over 6,000 exchanges worldwide. If you want to design an app that tracks financial data rather than just stock data, Xignite is a great choice. With the free subscription from Xignite, you can access data from 6 exchanges with 5,000 records each. You will receive data from 100 exchanges with 50,000 records per exchange if you join up for their basic package. The enterprise plan from Xignite includes all the features of the ordinary plan in addition to extras like round-the-clock assistance. Investors that require real-time data may find it inconvenient that Xignite’s data is at least 10 seconds delayed.
Algorithmic trading mobile app development company
Algorithmic trading mobile app development company
A real-time stock data API called IEX Cloud gathers information from the IEX exchange. Stocks that are either tiny or too illiquid to be listed on larger exchanges typically trade on this market. Since the SEC and FINRA oversee the IEX exchange, its data is dependable and trustworthy. A REST API and an HTTP/S endpoint are the two main methods by that IEX Cloud provide access to its data. You may access information about each symbol, such as its price and volume, by pulling data from a table of symbols using the REST API. Pushing a request to the HTTP/S endpoint and receiving data in JSON format allows you to obtain data in real time.
A real-time data API called Finnhub provides information from the Helsinki and NASDAQ exchanges. Finnhub’s API Explorer can assist you in creating a request, testing API calls, and obtaining sample data if you need data from various exchanges. To test API requests and explore how Finnhub can provide real-time data, you can utilize API Explorer. Are you prepared to get real-time stock data? Read the API documentation for each API in which you are interested first.
Algorithmic trading mobile app development company

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Trailblazing features of iStudio's
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Algorithmic trading mobile app development company
Trend-Sensitive Algorithms
Algorithmic trading application developers
Setup for Simultaneous Purchases
Algorithmic trading application developers
Current Exchange Rates
Algorithmic trading application developers
Algorithmic Price Monitoring

Privileges of Developing Automated/Algo Trading Apps

To ensure the future expansion of your trading platform, you can consider the following benefits before hiring our algo trading app development services:
  • According to the provided mathematical models and systematic algorithms, algorithm trading mobile apps enable quicker and more succinct order placing.
  • New users can learn about trading and explore additional stock options online thanks to decreased transaction costs and fewer manual selection errors.
  • High-frequency trading is easier for traders to implement, thanks to the availability of previous data. Another notable advantage of algo trading is backtesting.
  • Creating an algorithmic trading app also entails reliable price monitoring based on various time zones and exchange rates.
Algorithmic trading application developers

Why choose us as your Algorithmic trading application developers ?

Algorithmic trading application developers

Strategy for agile development

Our algo trading app development firm turns your methods into a comprehensive set of rules and creates a program that helps your users purchase and sells.

Algorithmic trading application development company

Implementation of Algorithms

We can streamline the execution of pertinent algorithms and transform them into useful trading app features thanks to our connections with the most recent app technologies and trading trends.

Algorithmic trading software development company

All-Pervasive Talent

Experts join with extensive backgrounds in mechanical app design. The greatest front-end experts, project managers, testing specialists, and UI/UX designers are on our team.

Algorithmic trading software development company

Integration of Exchange API

We recognize that API connectivity will determine the direction of your algo trading software and its investor usability. Therefore, we choose APIs for your trading platform in a practical manner.

Wondering where to Get started

  • To begin the creation of an algo trading app from scratch, share your project requirements.
  • We'll come back to you with a long list of tactical recommendations to improve the overall app performance.
  • Indicate your preferred charting tools, technical indicators, sorting options, dashboard & portfolio settings, and more.
  • Enjoy a fast delivery while our project managers keep you informed of important updates.
Algorithmic trading software development company

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