I think you’ll agree with me when I say:
“It’s REALLY hard to track stock market, day in & day out”
Well, it turns out, you can dramatically increase your Return on Investments (ROI) by entering the right stock at right time.
And to do that you just need to add a simple automation feature to get notified about the right stock at right time…
…a feature that recently gave me an alert when one of my stock Manali Petro was 39.7% up in my portfolio.
And in today’s post, I’m going to show you – What that feature is all about and what we are gonna do to make that thing alive.
…and exactly how you can easily add one and make your Investments automated.
What if a specific stock is automatically brought down on the match of certain criteria…
Automation is the future of tech world. We, here, are trying to tap the market of automation in Finance Industry, especially the stock market.
If you’re really a serious Investor or Traders then you may understand the problem of tracking the pulse of each & everything that affects the stock market.
- I want to buy a stock when it reaches below its 200 days Moving Average.
- Or I may want to sell IT stock if the US election is not in Clinton favor
- Or maybe, I’m willing to short a position if a particular stock is covered with negative whims.
There can be many people with their own different requirements BUT practically, it’s not possible to track them all at once with keeping aside your 9-5 day jobs. You need to create a system that will work for you even if you’re ZZZing.
Around four months back, I figured out a process that has allowed me to consistently grow my portfolio returns — a process I could replicate.
Now, I’m at a point where I’m adding more and more excellently filtered stocks in my portfolio.
Let me hit the nail.
We’re working on an Application (Android & Web) where you can get ACTION alerts based on your TRIGGERS. Yet, the service is not publicly available but most possibly, we’re going to launch it for public use by the end of this year.
Have you heard about the IFTTT?
This application automates the workflow by connecting different applications. You can see some of the examples above.
It is an excellent productivity tool to automate your workflow and increase the efficiency by not wasting your time for similar works.
I too had created 9 recipes in this applications – Like every morning I receive a notification about the tasks I want to complete, all the starred emails are automatically saved to my Google drive separately. My Twitter and Facebook profile pic always remain same as they synced.
This whole system works on a single algorithmic statement – IF THIS THEN THAT. The first part of the recipes is Trigger and second, Action.
That’s what we gonna do in the field of stock market.
We are trying to integrate the “If this then that” model in our daily stock market interactions. We are just the IFTTT of Finance.
How is this system gonna work?
As stated above, our product is going to work on 2 components:
You simply need to set some criteria and upon which you’ll receive notifications whenever they are matched.
We will provide you a platform (Android App and Web App) where you can create these Triggers & Actions. Eventually, when these Triggers are matched, you’ll immediately receive a buy/sell Alerts.
Here’s an example:
If the GDP rate is announced above 7% in any coming future then you’ll receive a buy alert of TCS from our system.
These Triggers are broadly divided into 6 categories:
#1 – Price Event
Example: If Nifty Index is increased by 2% then buy alert on TCS.
#2 – Technical Event
Example: If SBI is above 100 days moving average then sell signal alert on Axis Bank.
#3 – Fundamental Event
Example: If the Infosys EPS is increased by 5% QoQ then buy signal alert on Infosys.
#4 – Economic Event
Example: If the GDP is announced more than 7% then buy signal alert on Nifty Future.
#5 – Portfolio Event
Example: If a specific stock in your portfolio is increased by 20% then sell signal alert.
#6 – Specific Event
Example: If the US election is in Clinton favor then buy signal on IT stocks.
The most important benefit here is that your decisions will not be biased by emotions instead, will be based on some rigid and relevant criteria. Transactions will only execute if certain metrics are matched in the real market, whether you sleep or walk – Your patterns will keep working for you.
And most important thing is that you can share your patterns (triggers + actions) with your friends. You can follow patterns of other successful investors who have a well-revised pattern which helps them to beat the market.
I had also created some patterns based on Fundamentals which help me to find the right stock and Technical which helps me to find the right time to enter. Sometimes I also use Economic and Specific events if the investments are based on the economic model as a whole. Portfolio events are mainly used for selling the stock or (sometimes) to buy more of it.
Here’s a quick diagrammatic explanation of the product.
No doubt, there are already some services which provide alerting services like:
- Moneycontrol provides price & volume based alerting services.
- Google Alert provide news based alerts.
- Screener provides company announcements based alerts.
…..but they all provide delayed alerts and with very minimal features. Even they can’t attain the excellence as that’s not their core operational work. We are gonna provide high-level real-time alerts which are based on 6 types of operational events as discussed above.
What are we up to?
Lately, we are trying to introduce the feature of automation trading by connecting your broker’s trading account to our platform and getting SEBI approval for specific activity on our platform.
This will help you to transact the stocks in the real market based on your pre-formatted Triggers without any further involvement. No manual executions. Your benefits will solely depend on the reliability of your Trigger & Actions. Currently, we are in talk with 3 prominent brokers.
This is how the flow is going to work:
We are also planning to introduce all other trading markets like Currency, Forex, Commodity etc.
How we differ from Algo traders?
What Algorithmic traders do is…. Create an algorithmic software with technical metrics – receive funds from clients – manages their funds.
What we do is…. Created a platform to create basic/complex patterns – you register with us – started building your own Patterns – you manage your own funds.
Most important, former only use technical parameters to create algorithms WHEREAS we provide you platform where you can create your Algos based on technical, fundamental, economic, portfolio and specific events.
Isn’t it much reliable, huh?
Where are we? Where will we be?
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