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.

Morning Star Candlestick pattern filters explanation:

  1. The daily Open price is less than the daily Close price, indicating that the stock's price has increased throughout the day. This means there is a positive change of more than 0%, showing that the stock closed higher than it opened.
  2. The filter checks if the current daily opening price of the stock is greater than the closing price from the previous day. This means that if the stock opened today at a price that is higher than what it closed at yesterday, it indicates a positive movement of more than 0%.
  3. This filter checks if the stock's opening price from one day ago is less than its closing price from the same day. This indicates that the stock has gained value during that day, showing a positive change of at least 0% from the opening to the closing price.
  4. The filter checks if the closing price of the stock from one day ago is less than the closing price from two days ago. This indicates a decrease in the stock's value over the last day, showing a negative change of up to 100% depending on the specific closing prices.
  5. The filter checks if the opening price of the stock two days ago was greater than its closing price on the same day. This indicates that the stock opened higher than it closed, suggesting a decline in price during that trading day.
  6. The closing price of the stock from 2 days ago is less than the closing price from 3 days ago, indicating a decrease in value. This means that the stock has dropped in price by a certain percentage over that period.
  7. The filter checks if the opening price of the stock three days ago is greater than its closing price on the same day. This means that the stock's price at the start of that day was higher than what it ended at, indicating a decrease in value of at least 0% from the open to the close.

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.

Create a Screener:

  • Go to the "Screener" section and select any pre-existing template (e.g., "Morning Star Candlestick pattern").
  • Copy the Scan and then open it from the scans dashboard.
  • Change the segment to your own watchlist of instruments. (e.g., “BPCL”)
  • 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 “BPCL”.
  • 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.

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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.