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Patni Capital Algo

APPROACH

Rules
beat
emotion.

Algorithmic trading sounds complicated. The idea behind it is simple: decide the rules first, then let a computer follow them exactly. Here is how we think about it, including the risks.
See how it works

01

What is an algorithm?

An algorithm is a written set of instructions. A recipe is one. So is the checklist a pilot runs before take-off.

In trading, an algorithm answers three questions in advance: when to enter a trade, how large the position should be, and when to exit, whether the market moves for or against it. Once the rules are written, a computer can check them every second without getting tired or distracted.

Our strategies trade Indian index options on NIFTY, BANK NIFTY and SENSEX. Each one is a precise set of rules, run automatically through Tradetron in the user’s own broker account.

02

Why rules
beat emotion

Fear
Exit when the stop is hit, not when the screen starts to feel uncomfortable.
Hope
A losing position is not held longer in the hope that it comes back.
Greed
Position size is fixed in advance and does not grow after a good day.
Hesitation
If the entry conditions are met, the order goes in on time.

Rules do not make a strategy right. They make it consistent, so it can be tested, measured and improved, which is impossible when every decision depends on mood.

03

How risk is
handled

  • Stop losses

    Every position has a predefined exit if the market moves against it. In fast or gapping markets the exit price can be worse than the stop level, so a stop limits risk but cannot remove it.

  • Position sizing

    The size of each trade is set by the rules, not decided in the moment, so no single trade carries too much of the account.

  • Time-based exits

    Intraday strategies close their positions at a scheduled time, so nothing is left open by accident at the end of the day.

  • Diversification

    We run several independent strategies with different logic, so no single idea carries the whole book. Diversification spreads risk; it does not prevent losses.

IMPORTANT

All trading carries risk of loss

Trading in derivatives, including index options, involves substantial risk. You can lose money, sometimes quickly, and some option positions can lose more than you first expected to risk.

Algorithms reduce emotional mistakes. They do not remove market risk, and they add technology risk: brokers, exchanges, internet connections and software can all fail.

Historical testing does not predict what will happen in live markets. Only trade with money you can afford to lose, and consult a SEBI-registered adviser if you are unsure whether this is suitable for you.

How we
think

  1. RULE 01

    Systematic over emotional

    Decisions come from tested rules, not headlines or gut feel.

  2. RULE 02

    Diversify across strategies

    Independent strategies, so no single idea carries the whole book.

  3. RULE 03

    Test before it goes live

    Ideas are tested across years of market data. Most never make it to live trading.

  4. RULE 04

    Keep reviewing

    Live behaviour is checked against research every month, and rules are revised when they drift.

Let’s
talk.

EMAIL
info@patnicapital.in
PHONE
+91 80975 78729
X
@PatniCapital