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Big Market Data and Roll of Trading API Solutions

  • Friday, 19 May 2023
Big Market Data and Roll of Trading API Solutions

Article in Economic Times by Mr. Padavala Anoop Naidu, Tech Head - SAS Online

Big Data is nothing but large sets of information that is further growing in real time. APIs are interfaces that allow different applications to interact with each other. Trading API allows you to interact with trading systems and auto execute orders and get real time market data - price, volume, open interest, order updates etc. Further API based Trading Solutions are enabling auto execution of orders.

Back in the day big data along with API based auto trading was deployed by HFT Firms (High Frequency Trading Firms) and Investment banks. Now these are being increasingly adopted by retail traders to profit from the markets. Auto trading based on signals generated from Trading systems are completely changing how the stock markets are functioning and how Traders are making their trading decisions. Analysis from Big Data is helping traders look for trading opportunities and further helping them develop and backtest trading systems.

As a human trader one can maybe use 4-5 indicators/Setups to help look for trading opportunities but big data can totally change that. Big Data and analytics can track multiple trading opportunities across the asset classes at the same time and the system itself can generate signals related to buy/sell, when to enter / exit, the quantity of the order and finally the target and Stop Loss. Further the system can directly via Trading API’s, execute this in Live Market and that too at much greater speed than one can do manually. Say you have an effective strategy based on the indicator Super trend.

However manually executing this may lead to slow execution, also it requires you to be present on the trading terminal at all times and further it may happen that emotions creep in thus causing you to trade irrationally. Trading API's come in handy here as they remove the emotions out of trading thus removing the emotional bias. Other popular Trading setups would be ones which seek Arbitrage opportunities - basically profiteering from price difference of a stock or instrument listed in two different markets may it be domestic or global. other being ones which depend on statistical arbitrage-basically that employ mean reversion models.

To Read Full Article on Economic Times -  Click here



    Still system engineering, cyber scams, network resilience and connectivity issues challenges the algo trading less profitable for retailers.
    April 1, 2023 at 10:09pm

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