The most common reason an automation project gets delayed is unclear rules. A computer cannot act on "buy when the trend looks strong". It needs a condition it can check as true or false. Use this checklist before you start.
1. Market and timeframe
Name the exact instrument (for example NIFTY futures, BANK NIFTY weekly options or MCX Crude Oil), the chart timeframe, and the trading session (for example 09:15 to 15:30 IST, no new entries after 14:45).
2. Entry conditions
Write each condition with numbers. Example: "Buy when the 5-minute candle closes above the high of the first 15 minutes and the 20 EMA is above the 50 EMA."
3. Exit conditions
Define the stop loss, target, trailing stop and time exit. Decide what happens if price gaps past your stop.
4. Position size and risk
State the quantity or lots, the maximum loss per trade, the maximum loss per day and how many trades are allowed per day.
5. Edge cases
- What if an order is rejected or only partly filled?
- What happens on expiry days, holidays and half-day sessions?
- What if the internet or broker connection drops while a position is open?
6. Test before going live
Backtest the rules on past data, then paper trade them live without real orders. Compare the results with what you expected and fix the gaps before using real money.
If you can answer every point above, your strategy is ready to automate. New to the idea? Start with what algo trading automation is, or compare MT5, Pine Script and Python.
Talk to us
Have a strategy you want automated? Book a free consultation: WhatsApp +91 91430 21333, email support@biatrader.com, or see trading automation and pricing.
Disclaimer: BIATRADER is a software development provider only. We are not SEBI-registered, and nothing here is investment advice or a recommendation to trade. Trading involves risk, and past or backtested results do not guarantee future returns.