Trading Basics
Understanding Algorithmic Trading: A Beginner's Guide
2024-01-15 · 9 min read
Rules first, software second
Algorithmic trading means a computer follows rules you already defined: when to enter, when to exit, how much to risk. It is not a promise of profit, and SevenTicks is a technology vendor — not a broker, PMS, or investment advisor.
Most desks start with one clear setup (a moving-average cross, a SuperTrend, a breakout of a marked level) and automate only that. The hard part is risk: position size, daily loss cap, and what happens when the broker rejects an order.
Pick the stack that matches the market
If you trade Indian brokers, a platform like AlgoCrab or CopyTrading sits on APIs you already use. If you trade MetaTrader, an Expert Advisor plus a Windows VPS keeps the terminal online after you close the laptop.
Crypto desks that refuse custody look at Algolingo — funds stay on the exchange. Mixing these stacks without noticing is how people buy the wrong licence.
Before you go live
Paper-trade or demo, write the rules down, and assume outages will happen. Past backtests are not future results. If you cannot explain the rule in one paragraph, you are not ready to automate it.
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