3 things to know to begin rule-based trading

Over 70% of the trades in the US markets are automated, thanks to rule-based trading. India is also fast catching up. And if you’re interested in rule-based trading, here are three key things you need to know before you begin. Firstly, data is your best friend. To truly take advantage of rule-based trading, you need to have access to the latest market data. Real-time data, end of day data, historical data - all of this is important. Secondly, you need to have a grip over programming. That makes it easier for you to code and develop trading strategies. Today, some broking platforms - like Angel Broking - offer their own smart APIs to make things simpler for aspiring rule-based traders. And lastly, basic knowledge of trading is crucial. You need to know how the markets work, what instruments are traded, and what trading strategies to use. So, to sum it up - data, programming, and trading. These are the three key things you need to know. Up next, we have an introduction to neobanks and open banking. Stay tuned!