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Prerequisites
Before you start creating a strategy, there are few things you would need to do:
1. Use this link to open an account with Tradetron. Ignore if you already have an account. By default, you will be subscribed to their “free” plan and that should
suffice to begin with.
2. Learn about Tradetron features, architecture, and getting started guide at this link.
Apart from these, we recommend you brush up on the concepts of technical analysis, futures & options trading, etc so that you understand what you are doing.
Refer Zerodha Varsity for some excellent resources on the same.
Furthermore, a strategy can be private or public. A private strategy is used for self and not exposed to the outside world. While a public strategy can be seen by
others. You can sell your public strategies in the Tradetron marketplace for a subscription fee or profit share.
We’ll learn all about these further in this article.
Also Read: Automated Trading Software in India – Top Recommendations
For example: if you select Nifty 50 in the list dropdown, the set entry/repair conditions would be checked on every stock listed in Nifty 50.
Click on 3 dots beside the list dropdown followed by the ADD button to create a new list.
You can add any number of instruments to the list and click on the SAVE button. However, one list can only contain instruments from a single exchange.
The strategy that we are working on is supposed to take positions on Nifty or Banknifty futures, so I have selected the predefined index_fut list from the
dropdown.
Once you add a Position keyword in your condition, you can further define the timeframe and instrument name(s).
Click on the ‘Symbol’ keyword underneath Position to define the candle type (timeframe), and the underlying. If you want to test the condition on the spot prices,
select underlying as ‘Instrument Name’, and if you want to test on futures prices, select underlying as ‘Futures’
And then click on the ‘Instrument Name’ keyword to define the instrument(s) where you want the condition to be checked.
I have defined a list here as I want my strategy to be checked against each instrument in the list.
Finally, click on the RSI/ADX keyword in case you need to change the default lookback period of these indicators.
To check if RSI(17) is greater than or equal to 75, use the ‘>=’ operator along with the ‘number 75’. Number is a keyword used to define any numbers.
Similarly, build a condition for ADX(14) is greater than equal to 25.
Click on the + Submit button once you have defined both the conditions.
The inputs in the position builder are the same as what you enter while manually placing an order through your broker terminal.
Exchange, Type, and List are populated by default based on the list you selected in step 1. You need to manually fill in the Product, Expiry, and Quantity. Expiry
and Quantity can be a constant value OR can be derived using a formula by using the ‘Fx’ button.
Click on the ‘Add’ button once you have defined the positions.
Click on the +Add button inside the Exit Conditions block under Set 1. It will open up a condition builder similar to Step 3. Click on the + Condition option at the
top and add conditions as below:
Please note that the conditions are divided into two groups separated by an OR operator. The first group checks if RSI(17) <= 25 AND ADX(14) >= 25, and the
second group checks the stop loss. If either of the two group’s conditions is met, all the open positions in Set 1 are exited.
The conditions in the first group are pretty straight forward and are similar to what we defined in Step 3 (with the difference of comparison operators and
numbers).
In the second group, we are checking if the last traded price (LTP) of the futures instrument is less than 1% of the entry price.
The three new keywords used in this condition are LTP, Traded Instrument, and Futures.
First LTP keyword is added and ‘Futures’ is selected under the Instruments dropdown. This would make sure that the last traded price of the futures quote is
fetched.
Next, select the Futures keyword (under LTP) and select index_fut list as the underlying.
The Traded Instrument keyword is used to fetch the details of the instrument that is already traded through the strategy. In this case, we would fetch the entry
price and compare it with LTP.
Click on the + Submit button once you have the conditions.
And if the entry conditions are fulfilled, a Short position should be taken.
The exit conditions in set 2 are equivalent to our ‘Cover’ rules. The short position should exit when one of the below conditions are fulfilled:
1. RSI(17) >= 75 AND ADX(14) >= 25 OR
These rules can be configured in a similar fashion like how we did in Set 1. See screenshot below:
‘Time()’ is a function that returns the current time in MMSS format. It is checked against the constant number 1515 (3:15 PM), and if the current time exceeds 1515
then all the open positions are exited.
2. Execution Type – You have 4 options here – Live Auto, Live Auto One Click, Live Offline, Paper Trading.
i. Live Auto – Orders would be placed automatically without any manual confirmation from the user
ii. Live Auto Once Click – Requires confirmation from the user before placing the order
iii. Live Offline – Orders are not automatically sent to the broker, rather a notification is generated on Email/Whatsapp/SMS, etc. Based on the notification you
can manually place the order.
iv. Paper Trading – Simulation of real trading. None of the orders are sent to the broker. However, all the simulated trades are recorded for your analysis.
3. Broker – All your added brokers will show up in the dropdown. Select the one that you want to use for this strategy. For paper trading, the broker is defaulted
to ‘TT Paper Trading’. To learn how to add a broker, check out this article.
Click on the Deploy button once you have filled in the required details.
After the strategy is successfully deployed, you are good to go. Monitor if the trades are correctly executed during market hours. You will get notifications for all
the trades.
2. Paused – The strategy has been manually paused, and hence no conditions are being checked. The existing positions would remain untouched until the
strategy reactivated or exited
3. Blocked – The strategy has been blocked for execution. Contact Tradetron support to know the actual reason for the blockage.
4. Live-Entered – One or more entry conditions are satisfied and live positions have been taken.
5. Exited – All the exit conditions from all the sets have been satisfied, hence no position is active. Based on what you defined in the advanced properties, the
strategy would automatically reactivate after the time specified or else you can activate it manually.
6. Live-Tranching – For strategies involving huge quantities, you can choose to divide the quantities into multiple orders to average your cost. This process is
called Tranching and can be configured from the advanced settings section of the strategy.
Your deployed strategy remains in Live-Tranching status unless all the positions are fully taken. In the interim, no conditions are being checked.
1. Awaiting-OneClick – If your execution type is ‘Live Auto One Click’, then the system waits for manual confirmation of the positions to be taken by the user. In
the interim, no conditions are being checked.
2. Error-Execution – If there is an error executing the trade, the strategy goes into Error-Execution status. You can know more about the error by checking the
notification logs. The system waits for the user to fix the problem and click on “Retry” next to this status. In the interim, no conditions are being checked
3. Archived – You can archive a strategy if you no longer want to trade based on it. An archived strategy can still be used for reporting and inspection purposes.
In the above screenshot, the status is ‘Live-Entered’ which means the positions are already taken. You can see the live positions in the tabular format with the
instruments name, quantity, LTP, and P&L.
Clicking on each individual symbol would show you the entry/exit price and time. The execution price may vary from broker to broker as there may be some
latency involved. The slippage caused due to this latency is mostly against you, so you should always consider it while estimating your total P&L.
The counter represents one full cycle of entry and exit. The counter in the screenshot is 1, which means it’s the first trade. If any repair conditions are satisfied
and more orders are placed, then also the counter would remain 1. However, if the exit condition is satisfied, and the strategy is activated again (either manually
or automatically) then the counter would change to 2.
Besides the counter number, you’ll see the total profit & loss for that counter.
Click on the ‘3 dots’ on the top right of strategy to see various operations you can perform on a deployed strategy. The strategy can be paused, archived, or
reactivated from here. And also you can delete/edit the strategy.
Ideally, there is no need to continuously monitor the strategy as the Tradetron platform takes care of the execution, however, you may need to take some manual
actions in case the strategy goes into an error state. Keep the Email/Whatsapp notifications enabled so that you can act immediately.
Also Read: Tradetron Video Tutorials
Verify your Strategy Conditions
After you create a strategy in Tradetron, it is very important to verify if your strategy conditions are working as expected or not. The best way to verify is to
deploy your strategy in paper trading mode and check every trade.
Our strategy takes Buy position when RSI(17) >= 75 AND ADX(14) >= 25 in 1 minute timeframe.
And after deploying this strategy live, there was a Buy position taken in Nifty Futures on Dec 29, 1:10 PM. Let’s verify if the conditions were correctly checked or
not.
Let me first show you the 1-minute candlestick chart of Nifty in Tradingview. I have added RSI(17) and ADX(14) to the chart.
As you can see, at 13:09 the RSI value was 77.99 (>75) and the ADX value was 33.59 (>25). This suffices the buy condition, and at the next candle i.e.13:10 candle
buy position is taken.
The source of data for Tradetron is not Tradingview, but still, you will see the same numbers in the Tradetron notification log. Click on the 3 dots on the top right
of deployed strategy and then click on ‘Notification Log’
You’ll see something like below in a popup window:
Every log has a timestamp associated with it. Copy the content of the log in a text editor and format it properly so that it is readable.
Below is the screenshot of formatted log contents:
In the highlighted portions of the above screenshot, you’ll see that Tradetron computes RSI and ADX values and compares them with numbers 75 and 25
respectively. The logs may look cryptic initially but you’ll get a hang of it gradually.
In a nutshell, the notification log is the best place to go to check/debug your strategy conditions. Carefully check each entry in the notification log to verify your
entry/exit conditions. Contact Tradetron support over chat or email if you see anything odd.
Final Thoughts
I hope you got a fair idea of how to create, deploy, and monitor your strategies in Tradetron. It’s fairly simple and intuitive platform to build a fully automated
trading system from scratch. Please be mindful that you cannot create a profitable strategy in a day or two, it takes exhaustive research and several iterations to
come up with something useful.Tradetron is just an enabler that lets you simplify the way you trade, however, it’s not a money-making machine. If used wisely,
you’ll get excellent results from Tradetron, many of our subscribers have already built profitable strategies and some are on the way.
Click here to sign up for the upcoming Tradetron webinar where you’ll get a live demo of the entire platform along with some strategy creation tutorials.
Please let us know if you want to learn anything specific about the Tradetron platform. We’ll love to publish more articles in the future.
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