5 EMA Strategy - Power of Stocks

Execution Details

1. We, Myalgomate Technologies LLP, are a technology provider platform and do not act/intend to act as a wealth manager/ advisor in any capacity.
2. This tool is an automated version of the strategy available in the public domain. We neither endorse this strategy nor provide backtest data or any standard configuration. All the parameters are configurable and user needs to decide their own parameter to use the software.
3. The intention behind automating this strategy is to help those traders who are already trading on a similar strategy and want to automate it.

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Demonstration Video: Instruments to trade:

• Equity, Equity Futures, Index Futures, Index Options (Finnifty excluded)

Intraday or Positional:

• Intraday

Different modes of trading:

Execution Details:

• You can decide whether to take buy-side signals/sell-side signals/ both only or sell-side signals only.
• You can set the max no of trades per script and the total no of trades across all the symbols.
• At every candle close, it will be checked for signal. The signal is scanned during the start time and stop time mentioned. At exit time, it will exit all positions.

Buy Side Trades:

• Signal Candle: The high of the candle should not touch EMA. This candle will be called a Signal candle.
• If the price goes above the high of the Signal Candle High, it will buy.
• If you have enabled Triggered valid till the next candle, then the high of the signal candle should be broken in the next candle otherwise it will invalidate the trade.

Sell Side Trades:

• Signal Candle: Low of the candle should not touch EMA. This candle will be called a signal candle.
• If the price goes down below the signal candle low, then it will sell.
• If you have enabled Triggered valid till the next candle, then the low of the signal candle should be broken in the next candle otherwise it will invalidate the trade.

Strike Configuration:

For strike configuration, there are two modes available:

1. Entry by ATM Points
2. Entry by Closest Premium

Entry by ATM Points:

Examples:

1. Underlying Price: 35125, CE ATM Points = 0, PE ATM Points = 0 ATM Strike = 35100 CE Strike selected = 35100 PE Strike selected = 35100
2. Underlying Price: 35125, CE ATM Points = 100, PE ATM Points = 100 ATM Strike = 35100 CE Strike selected = 35100 + 200 = 35200 PE Strike selected = 35100 – 200 – 35000
3. Underlying Price: 35125, CE ATM Points = -100, PE ATM Points = -100 ATM Strike = 35100 CE Strike selected = 35000 PE Strike selected = 35200

Entry by Closest Premium (CP):

Examples:

• Closest Premium Price: 100, Type: “~” It will select the option contract nearest to the price of 100.
• Closest Premium Price: 100, Type: “>=” It will select the option contract nearest and above the price of 100.
• Closest Premium Price: 100, Type: “<=” It will select the option contract nearest and below the price of 100.

Quantity Configuration:

• For Equity, you can set quantity based on The of Shares/ Capital per Trade/ Risk per Trade
• For Futures & Options, it will be based on the no of lots.

Exit Criteria: (Exit conditions currently on website)

• Time-Based Exit
• User exits positions from software
• N Candles H/L from the signal:
  • For example, if you have set the value = 3, then for a sell signal, it will set the SL to the highest of high of the last 3 candles including a signal candle. For the Buy signal, it will set the SL to the lowest low of the last 3 candles including the signal candle.
• SL & Target based on %/Pts:
  • You can enable SL/target based on the % or points of the entry price.
• RR-Based Target
  • For Sell side trade: If you have set the RR-based target = 2, entry price = 100, and SL price = 102, then the target will be 96. Opp. for the buy side.
• Exit based on EMA Touch:
  • For sell-side trade, when the price comes down and touches the EMA, it will exit the position. For buy-side trade, when the price goes up and touches the EMA, it will exit the position.

• Exit based on Candle Close above / below EMA:
  • For sell-side trade, when the price comes down and the candle closes below the EMA, it will exit the position. For buy-side trade, when the price goes up and closes above the EMA, it will exit the position.

Stop Loss trailing:

Trailing Logic:

• We do not modify the SL price in the broker when trailing happens. It will store the trail SL price in the software and continuously monitor if the trailing SL is hit. Whenever trailing SL is hit, it will modify the SL order to market to exit.
• Trailing will always happen in the direction of the trade.

Example :

Entry Type = Buy

For trailing, if LTP = 100, Initial SL % = 10% Trailing X% = 5%, and Trailing Y% = 5%, then it will trail like following:

• Initial SL = 100 – (100*10%) = 90
• Trail X Points = 100 * 5% = 5
• Trail Y Points = 90 * 5% = 4.5
• When LTP reaches 105, it will trail the SL to 94.5.
• When LTP reaches 110, it will trail the SL to 99.
• When LTP reaches 115, it will trail the SL to 103.5. And so on…

Entry Type = Sell

For trailing, if LTP= 100, Initial SL % = 10% Trailing X% = 5%, and Trailing Y% = 5%, then it will trail like following:

• Initial SL = 100 + (100*10%) = 110
• Trail X Points = 100 * 5% = 5
• Trail Y Points = 110 * 5% = 5.5
• When LTP reaches 95, it will trail the SL to 104.5.
• When LTP reaches 90, it will trail the SL to 99.
• When LTP reaches 85, it will trail the SL to 93.5. And so on…

Protect Profit:

There are the following modes available to protect profits and it’s available at the strategy level and portfolio level both:

• Lock Minimum Profit
• Trail Profits
• Lock & Trail Profits

Lock Minimum Profit:

• Assuming the “If Profit Reaches” parameter is set to 10000 and the “Lock Min Profit At” parameter is set to 5000.
• When the profit reaches 10000, the system will lock the minimum profit at 5000.
• All positions will be exited when the MTM decreases to 5000.
• This action is performed only once.

Trail Profits:

• Assuming the “Increase in Profit” parameter is set to 5000 and the “Trail Min Profit by” parameter is set to 3000.
• The system will trail the minimum profit by 3000 for every 5000 increase in profit.
• When the profit reaches 5000, the minimum profit will be locked at 3000.
• When the profit reaches 10000, the minimum profit will be locked at 6000.
• The locking of the minimum profit continues for subsequent increases in profit.

Lock & Trail Profits:

• This mode first locks in the profit at the “Lock Min Profit” value, then begins trailing profits.
• For example, if “Profit Reaches” is set to 10000, and “Lock Min Profit At” is set to 5000, with an increase in profit of 5000 and a “Trail Min Profit by” value of 3000:
• When your profit reaches 10000, the minimum profit will be locked at 5000.
• When your profit reaches 15000, the minimum profit will be locked at 8000.
• When your profit reaches 20000, the minimum profit will be locked at 11000, and so on.

Configurable Parameters

• There is no limitation on how many symbols (Equity, Equity Futures, Index Futures, Index Options (Finnifty excluded)) can be added for scanning. • Paper trading functionality with live PNL and order book generation.

Global Configurable Parameters: (These parameters are common for all the straddles/strangles taken by the user.)

1. Start time
2. Stop Entry time
3. Exit time
4. Max. no. of Trades
5. Timeframe
6. Expiry Date
7. Global Max Profit
8. Global Max Loss
9. Order Type ( Dropdown: MARKET / LIMIT )
10. Product Type (Dropdown: MIS/NRML)
11. Limit Order Configuration
    1. Limit Buffer %
    2. Seconds to modify Limit order to market
12. Protect Profit
    1. Lock Minimum Profit
    2. Trail Profits
    3. Lock & Trail Profits
13. Execution Mode ( Paper Trade / Live Trade )

Configurable Parameters at the Strategy level: (These parameters can be configured separately for each symbol.)

1. Alias Name
2. Segment: Equity / Index
3. Underlying (Equity, Equity Futures, Index Futures, Index Options (Finnifty excluded))
4. Trade On : (Index Options
5. Option Mode
6. Contract Selection
   1. Entry by ATM Points
   2. Entry by Closest Premium
7. EMA Period
8. Time Frame
9. Trade Direction
10. Max Trade per Script
11. Trigger Valid till Next Candle (Check box)
12. Strategy Max. Profit
13. Strategy Max. Loss
14. Quantity calculation
    1. Mode: By Qty / Lots
    2. Mode: By Capital
    3. Mode: By Risk per trade
15. Exit Criteria based on Underlying
    1. N Candle H/L from Signal
    2. SL ( Per / Pts )
    3. EMA Touch
    4. EMA Close Below/Above
    5. Target ( Per / Pts )
    6. RR based target
16. Exit Criteria based on Trade Symbol
    1. SL ( Per / Pts )
    2. Target ( Per / Pts )
    3. RR based target
17. Protect Profit
    1. Lock Minimum Profit
    2. Trail Profits
    3. Lock & Trail Profits

Order Execution

Order Configuration:

• Entry Ordet Type- Limit Order
• Stoploss Order Type – SL (Applicable for Individual Leg SL only)
• Limit Order Configuration :
  • Limit Buffer %
  • Seconds to modify
• Product Type : MIS / NRML

Entry Order:

• For entry order, it will be placing a Limit order. Price will be calculated as below example:
• Entry Type = SELL LTP @ the time of placing order = 100 Limit buffer % = 2% Seconds to modify order = 5 It will place a sell limit order with 2% below the price which will be 98. If your order is not executed within 5 seconds it will modify to market.

SL Order:

Individual Leg SL:

• For the SL order, it will be placing a Stoploss Limit order. Price will be calculated as below example:
• Entry Type = Buy, Exit Type= Sell SL Price = 100 Limit buffer % = 2% Seconds to modify order = 5 It will place an SL buy order with trigger price = 100 and limit price = 102. So in this case your SL order may get filled anywhere between 100-102 with the best available price. If your order is not executed within 5 seconds it will modify to market.

Combined Leg SL:

• It will be placing a Limit order to exit positions when combined SL is hit.

You can tweak “Limit buffer %” and “Seconds to modify order” parameters as per your requirement to get the best results.

If the broker’s API fails due to any reason while modifying the SL order to market after X seconds, then your position will be open without any SL. In this type of scenario, you will need to manage and exit manually.

Salient Features

Screens:

1. Signal Window
2. Order Book
3. Position Book
4. Parameter Window
   • The Signal window shows the live signals generated and all different values like Entry Price, Target Price, SL Price, Quantity, etc. depending upon the strategy.
   • Order Book shows all the orders placed by the software.
   • Position Book shows the live MTM and open positions generated due to software.
   • Parameter Window displays all the parameters set by the user.

Some Other Functionalities:

• User can save the configuration in case he / she wants to trade the same configuration every day

Pre Requisites

1. Integration with the broker requires a Broker Account API with historical data. If there are any charges associated with using the API from the broker, the customer will be responsible for covering the cost independently.
2. Infrastructure :
   1. Cloud Machine(Like Amazon AWS/Microsoft Azure/Google Cloud) can be used in Windows / MAC System
   2. If you opt for a Cloud machine, there is no other internet speed requirement or min computer requirement.