Algorithmic trading, also known as "algo trading," refers to the use of computer programs and APIs to execute trades automatically based on predefined strategies. In simple terms, imagine you are a trader who enters a buy position in Tata Motors whenever it breaks the day's high. You track charts, place orders, adjust stop-losses, and manually monitor positions throughout the day.
Now, instead of staring at screens and punching orders yourself, you could code your trading idea and connect it to multiple accounts via an API. Whenever your trade setup is triggered, whether in stocks or derivatives, the system automatically places entries, exits, and stop losses with zero manual effort.
While this is the basic concept, modern algo and quant trading in India are far more advanced, involving black-box and white-box systems, AI-driven strategies, and strict SEBI regulations.
Key Components for a Reliable Algo Trading Setup:
- A well-defined trade logic or strategy.
- Backtesting and forward testing to validate performance before going live.
- Minimizing slippage and execution errors.
- Ensuring hedging works properly in volatile markets.
Benefits of Algorithmic Trading in 2025
In 2025, algorithmic trading has gained huge popularity in India, especially after SEBI revealed that over 90% of retail traders lose money in options trading due to poor risk management, lack of experience, and emotional decision-making.
Algorithmic trading can help you:
- Avoid emotional or revenge trades.
- Ensure consistent and rule-based execution.
- Save time by automating repetitive tasks.
- Replicate expert-level trades in your account without manual intervention.
At LiveLong Wealth, we provide two levels of algorithmic trading:
- High-ticket conservative algos for portfolios above ₹50 lakh, designed for option selling and lower-risk returns.
- Low-ticket, higher-risk algos starting from ₹10 lakh—focused on aggressive option buying with higher risk and return potential.
Your money always stays in your demat account, with only an API linked to our master account for order execution.
How to Use Algorithmic Trading to Boost Your Portfolio
If you already have a profitable trading strategy:
- Take tech support to automate your setup.
- Forward-test it for real-market performance before full-scale execution.
If you don't have the time or expertise:
- You can subscribe to a SEBI-compliant algo service like Livelong Wealth and get the same trades into your account.
- Always ensure the provider is SEBI-registered to stay compliant and safe.
- Also, make sure not to deposit your money into anyone else's DMAT account; algo trading doesn't work that way.
Conclusion
In 2025, Indian markets are more competitive than ever. Manual trading leaves room for human error, while algorithmic trading brings speed, discipline, and precision to your portfolio. Whether you're a seasoned trader or a busy professional, algo trading by Livelong Wealth can help you trade smarter, not harder.
Boost your portfolio with SEBI-registered algorithmic trading by Livelong Wealth. Choose from our conservative or aggressive models based on your risk appetite, and let automation work for you.
FAQ:
1: Is algorithmic trading legal in India?
Yes, but it must comply with SEBI's guidelines. Always work with SEBI-registered algo providers.
2: How much capital do I need to start?
At LiveLong Wealth, our high-ticket conservative algo starts from ₹50 lakh, and our aggressive option-buying algo starts from ₹10 lakh.
3: Does my money leave my account?
No, your funds stay in your demat account. Only API access is provided for automated execution.
4: Can algorithmic trading guarantee profits?
No trading method can guarantee profits. However, automation helps maintain discipline and removes emotional biases.
5: Why is algorithmic trading important in 2025?
With rising market volatility, strict SEBI rules, and increased retail participation, automation is key to staying competitive and avoiding emotional mistakes.
6: Should I start with full cash as capital?
No, you can either start with cash, or you pledge your stocks or mutual funds to use as capital for algo trades.
Check out our latest blog: Should You Start Your SIP Now or Wait for a Market Dip?