Automating your trading strategy can save time and eliminate the need to monitor the markets constantly. With Chartink and AlgoTest, you can set up your strategy to execute trades automatically.

In this guide, you will learn:

  • How AlgoTest Signals work.
  • Step-by-step instructions to create a Chartink screener and set it up for automation with AlgoTest.
  • How to verify and deploy your strategy in live markets or test it using forward testing.
  • The requirements for automation.

How AlgoTest Signals Work

AlgoTest Signals allow you to automate your trades based on predefined conditions from Chartink. When a breakout condition is met in Chartink, an alert is sent to AlgoTest, which executes the trade on your broker terminal.

Key Benefits:

  • Eliminate manual trade execution.
  • Consistency in trade execution based on your strategy logic.
  • Saves time and reduces emotional decision-making.

Bullish Engulf filters explanation:

  1. The daily Open price is less than the daily Close price, indicating that the stock has increased in value throughout the trading day. This means the stock's price rose by a certain percentage from the opening to the closing price, reflecting positive market sentiment.
  2. The filter checks if the stock's opening price from one day ago is greater than its closing price from the same day. This means that the stock opened higher than it closed, indicating a potential downward movement during that trading day. In percentage terms, if the opening price was, for example, 100 INR and the closing price was 90 INR, this represents a 10% decrease from the opening to the closing price.
  3. The filter checks if the current daily opening price of the stock is less than the closing price from the previous day. This means that the stock opened lower than it closed the day before, indicating a potential downward movement. If the previous day's close was, for example, ₹100, then the current day's open must be less than ₹100 for this condition to be met.
  4. The filter checks if the current daily closing price of the stock is greater than the opening price from the previous day. This means that the stock has increased in value compared to where it started the day before.
  5. The maximum closing price of the stock over the last 5 days is less than the 20-day exponential moving average of the closing prices. This indicates that the recent peak closing price is lower than the average closing price over the past 20 days, suggesting a potential downward trend or weakness in the stock's performance.
  6. The average volume over the last 5 days is less than the current day's volume, indicating that the current trading activity is significantly higher than the average, suggesting increased interest or activity in the stock.

Step-by-Step Guide to Automate Your Strategy

Step 1: Create Your Screener in Chartink

Access Chartink:

Create a Watchlist:

  • Navigate to the "Watchlists" section.
  • Create a new watchlist for the instruments you want to monitor.
  • Search for instruments you want to monitor and click on ‘Add Selected’.
  • Watchlist is created with desired instruments.

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Create a Screener:

  • Go to the "Screener" section and select any pre-existing template (e.g., "Bullish Engulf").
  • Copy the Scan and then open it from the scans dashboard.
  • Change the segment to your own watchlist of instruments. (e.g., “Bharti Airtel Limited”)
  • Now save the scan.

Step 2: Create Your Strategy in AlgoTest

Login to AlgoTest:

  • Visit AlgoTest and log in. Go to Signals Dashboard.

Create a New Signal:

  • Go to the Signals dashboard page and create a “New Signal”.
  • Select Chartink as Signal Provider.
  • Select Forward Test as Execution Type.
  • Let’s create a new strategy, strategy on AlgoTest means which trades to execute if the signal is generated.
  • Go to the “Stocks” tab to create a stocks strategy.
  • Select the index you want to trade in this strategy we will select “Bharti Airtel Limited”.
  • Define the Trade you want to execute with Quantity, Position, Target and Stoploss.
  • Save the strategy with a unique name.

Step 3: Connect Chartink Alerts with AlgoTest Signals

Generate a Webhook URL:

  • Once the strategy is saved, you will receive a webhook url.
  • Copy the webhook URL for your strategy.

Link the Webhook to Chartink Alerts:

  • In Chartink, navigate to your saved screener and click on "Create Alert."
  • Paste the webhook URL in the alert settings.
  • Save the alert.
  • After Saving the alert click on “Start Listening” on AlgoTest.

Your Signal is in listening mode now.

Step 4: Deploy Your Strategy in Live Markets

  • Once satisfied with the forward test results, deploy your strategy in the live market by moving the signals to Live Trade.
  • Connect your Broker and setup Execution settings to start your Algo Trading.

Why Choose Chartink Premium

Chartink's Premium Plan offers essential features for automation:

  • Real-time data for scans and alerts.
  • Flexible alert intervals (1/2/3/5 minutes, etc.).
  • Notifications via SMS, email, and desktop/mobile.
  • No coding required!

These features make it an ideal choice for seamless integration with AlgoTest Signals.

Requirements for Automation

To use this setup, ensure the following prerequisites are met:

  1. Chartink Premium Plansome text
    • A premium plan is essential for creating alerts and running screeners with real-time data.

  2. AlgoTest Signal Plansome text
    • Activate the AlgoTest Signal plan to connect your strategy with Chartink alerts.

  3. Broker Connection with AlgoTestsome text
    • Connect your broker to AlgoTest via the broker setup page.

This is not it.

Here are a few strategies you should check out:

Thank you for choosing to trade with us.

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