Scalping – The Trading Strategy

Scalping is a strategy that focuses on quickly buying and selling the same underlying on the basis of entry and exit rules.

A scalper keeps entering and exiting positions of an individual stock or contract throughout the day to benefit from a run-up.

The Scalping Algo

Have you ever found yourself thinking, "Ah! I missed that trade!" This can be detrimental for a strategy like scalping.

Well, rest assured! You won’t miss any opportunity with this Scalping Algo.
Let the algo take trades for you! If you wish, you can monitor the entire list of trades with just one click!

This strategy is recommended for volatile and liquid stocks or contracts.

They are available for:

Cash (NSE)

F&O (NSE)

How to trade with Scalping Algo | Algo Trading ICICI Direct

What are the inputs required?

1. Max Open Quantity

This is the max open quantity you want while scalping

At no point, your open quantity will exceed/breach max open position

3. Averaging Entry Difference

This is the min drop in price wrt last reference price to trigger
buy order

4. Start Price

Select Start price as At Market / Custom

At Market: the first order is executed on market immediately

Custom: the first order is sent when the start price is reached

5. Select Stock:

Here select the stock you want to buy in Equity or F&O Segments

6. Product type

In Cash: Select from Intraday/ Delivery

In F&O: Select from Intraday/ Normal

7. Slicing Quantity

This is the quantity of slice that will be sent once scalping conditions are met

8. Take Profit/ Exit Difference

This is the min rise in price wrt last reference price to trigger sell orders

8. End Time

This is the time when the algorithm will stop, even if the total quantity is not met

10. Start Time

This is the time when the algorithm will start executing

1. Select Stock:

Here select the stock you want to buy in Equity or F&O Segments

2. Max Open Quantity

This is the max open quantity you want while scalping

At no point, your open quantity will exceed/breach max open position

3. Averaging Entry Difference

This is the min drop in price wrt last reference price to trigger
buy order

4. Start Price

Select Start price as At Market / Custom

At Market: the first order is executed on market immediately

Custom: the first order is sent when the start price is reached

5. Start Time

This is the time when the algorithm will start executing

6. Action

This is the action you want to take (Buy/ Sell)

7. Product type

In Cash: Select from Intraday/ Delivery

In F&O: Select from Intraday/ Normal

8. Slicing Quantity

This is the quantity of slice that will be sent once scalping conditions are met

9. Take Profit/ Exit Difference

This is the min rise in price wrt last reference price to trigger sell orders

10. End Time

This is the time when the algorithm will stop, even if the total quantity is not met

How does it work?

Starting the Algo

As soon as the start time is reached, the first order is placed on the basis of selected Start Price

If ‘At Market Price’ is selected, then the first order equal to the Averaging Quantity is placed immediately
If ‘Custom’ is selected, then the algo keeps checking if the scrip has reached the specified price

Orders placed once the algo starts

As soon as the start time is reached, the first order is placed on the basis of selected Start Price

Once your scalping condition of average entry difference is met, a buy order equal to Averaging Quantity is placed
Buy orders will be placed keeping total open positions limited to the specified Max Open Quantity
If the price of the scrip goes up, sell orders will be placed as per your take profit difference preference

Please note: The triggered price for last order sent is used as the reference price for the next orders

Where is the P&L reflected?

The summary of your algo can be viewed from the Running algos section once it is live
P&L will automatically be realized and can be visible in your F&O trading limit

When does the algo stop?

Orders stop getting sent once your preference of max open position quantity is reached
The algo stops altogether once your preference of end time is reached
You can also stop manually by hitting the ‘Stop Algo’ button

When not to use?

This Algorithm is not suggested for illiquid stocks (High bid-ask spread or low volume traded).

Disclaimer:

ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730), BSE Ltd (Member Code :103) and Member of Multi Commodity Exchange of India Ltd. ( Member Code : 56250) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Ms. Mamta Shetty, Contact number: 022-40701000, E-mail address: complianceofficer@icicisecurities.com. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The client shall not have any claim against I-Sec and/or its employees on account of any suspension, interruption, non-availability or malfunctioning of I-Sec system or service or non-execution of algo orders due to any link/system failure for any reason beyond I-Sec control. I-Sec reserves the right to pause, stop or call back any of the execution algos in case of any technical or mechanical exigency.

Explore Now Explore Now