Execution Algos are automated programs designed to execute orders based on predefined instructions. These instructions consider various parameters such as time, price, volume, or a combination of these factors. In simple terms, Execution Algos enable automated trading using systems with predefined trading strategies.

Why should we use Execution Algos?
Execution Algos leverage computing resources to provide speed and accuracy, benefiting the user. They enhance consistency, eliminate emotional biases in trading, and make trading more user-friendly. Ultimately, they help ICICI Direct customers execute trades more efficiently.

Who can use Execution Algos?
All ICICI Direct customers with a trading account can use Execution Algos. Customers can access Execution Algos through the ICICI Direct Super app or the ICICI Direct website.

Which segments support trading through Execution Algos?
Customers can use Execution Algos to place orders in the Equity and Derivatives (Futures & Options) segments.

ICICI Securities customers can trade using Execution Algos through the ICICI Direct Super App and the ICICI Direct website.

• ICICI Direct Super App: Navigate to the bottom navigation bar, select Tools, and then click on Execution Algos to view and trade available strategies.
• ICICI Direct website: The Execution Algos tab is available under the smart tools section of F&O. Customers can place new orders by selecting their desired algorithm and clicking the Go button for the chosen strategy.

Each leg or slice of an Execution Algos order is treated as a separate order. Therefore, brokerage is charged separately for each slice.

There are no additional charges for using Execution Algos. However, existing brokerage and statutory charges will apply as per the applicable product structure.

Yes, there is a “Stop All” button that allows customers to stop all Execution Algos orders at once. This will stop all Awaiting and Running strategies and move them to the Finished tab.

Yes, customers can Pause, Stop, and Resume Execution Algo orders.

• Pause: Temporarily halts Running and Awaiting orders. The strategy moves to the Awaiting state until further action is taken.
• Stop: Stops Running or Awaiting orders and moves them to the Finished tab.
• Resume: Allows paused orders in the Awaiting tab to continue execution.

Yes, the Clone button allows customers to create new Execution Algos order with existing parameters, including the script, total quantity, slice quantity, and time interval of a stopped or completed Execution Algos. Customers can also modify these parameters before starting the new Execution Algos.

The Execution Algos order status is categorized into three tabs:

• Awaited Tab: Displays orders in the Paused or Start state.
• Start: Orders scheduled for execution at a later time.
• Pause: Orders that were started but manually paused.

• Running Tab: Displays orders that are actively being executed.

• Finished Tab: Displays orders that have either been Completed or Stopped.
• Completed: Orders that have been fully executed.
• Stopped: Orders that were manually stopped before completion.

All completed orders appear under the Finished tab.

• In the ICICI Direct Super app: Clicking on a completed order will display its summary, including details such as Algo Name, Script Name, Exchange Order Number, Order Price, Quantity, etc.
• On the ICICI Direct website: Clicking on View Details provides a summary of the order.
• Algo Log: Customers can click on the Algo Log button to view details of every slice within an Execution Algos order.

Yes, ICICI Securities Limited can stop running Execution Algos in case of any issues, either from the customer’s end or due to system failures. If a customer experiences a technical issue, they can contact customer service to request the stoppage of active Execution Algos. Additionally, if there is a system failure from ICICI Securities’ or the exchange’s end, ICICI Securities may stop all active Execution Algos.

ICICI Securities Limited can also pause active Execution Algos if a customer faces technical issues and raises a request with customer service. However, customers can resume paused Execution Algos at their convenience.

Yes, the Stock Trigger Price and Execution Price can differ.
When an order is triggered and a market order is placed, it executes at the best available bid/offer on the exchange. If the required quantity is not available at the best price, the remaining unexecuted quantity gets matched against the next best bid/offer. This guarantees execution but does not guarantee a specific price.

The reference price for Scalping Algo is the bid/ask price at which the last order was triggered to the exchange. The algo monitors price movement relative to this reference price to determine the trigger price. Therefore, the reference price and trigger price will not match the LTP, as they reflect bid/ask prices at the time.

Please note that as per the regulatory guidelines, now all execution algos will be converting IOC Market orders to IOC Limit Orders. This change is introduced to reduce the risk of orders being executed at prices far from the Last Traded Price (LTP). Now, how will this work and what will be the limit price for such orders?

• For Futures and Stocks: The limit price will be within 3% of LTP. This will also be limited by daily price range specified for that scrip. Also, these orders won't sit in the order book as the validity is Immediate or cancel (IOC).

Buy: Placed above ask within 3% of LTP.

Sell: Placed below bid within 3% of LTP.

Example: If you have started an Algo for XYZ stock with an LTP of ₹100 with Daily Price Range (Exchange specified) is ₹90- ₹110 . It wants to trigger buy order at IOC market. Instead of market order, a limit order with market protection of 3% will be placed, i.e., the order will get executed at the next best offer within ₹103. Since, it is not breaching Daily Price Range (DPR) specified by exchange, therefore limit order will be placed at ₹103. Examples 2: If you have started an Algo for ABC stock with an LTP of ₹500 and Daily Price Protection (Exchange specified) is ₹487 - ₹521. It wants to place a sell order at IOC market. Instead, a limit order with market protection of 3% should be placed, i.e., ₹485. But this price is in breach of Daily Price Protection, therefore the limit order placed will be at ₹487 instead. The order will get executed at the next best price above ₹ 487.

• For Options: The limit price will be within 20% of LTP. Since options as an asset class is more volatile, therefore the cushion given for execution is also more. These orders being of the nature IOC (Immediate or cancel) won't sit in the order book.

Buy: Placed above ask with a differential of Max (20% of LTP, ₹5).

Sell: Placed below bid with a differential of Max (20% of LTP, ₹5).

Example: If you have started an Algo for XYZ options contract with an LTP of ₹100. It wants to trigger buy order at IOC market. Instead of market order, a limit order with market protection. The differential as per the formula is ₹20, therefore, the IOC limit order will be placed at ₹120 get executed at the next best offer within ₹120. Examples 2: If you have started an Algo for ABC options contract with an LTP of ₹15. It wants to trigger sell order at IOC market. Instead of market order, a limit order with market protection will be placed. The differential as per the formula is ₹3, which is less than ₹5(min difference). Therefore, a difference of ₹5 will be maintained. The IOC limit order will be placed at ₹10 and get executed at the next best price above ₹10.

• Impact: This change is introduced to reduce the risk of orders being executed at prices far from the Last Traded Price (LTP). But this could also lead to instances of no-fill.

The trigger price in Algo Trading is the predefined price at which an order is activated and sent to the exchange. In a Scalping Algo, the trigger price does not always match the Last Traded Price (LTP) because the reference price is based on the bid/ask price at which the last order was triggered, irrespective of whether it was executed or not. The algo continuously monitors price movement relative to this reference price to determine when to trigger the next order.

How does this work (Example)

Inputs: Max open positions = 2, Entry difference = 2, Take profit/Exit difference = 3.

🔴 Important Note:

💡 Ensure you have sufficient funds in your account to avoid this scenario.

💡 Order can fail due to many reasons.