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.

Potential Breakouts filters explanation:

  • The daily closing price of the stock should be at least 5% higher than the maximum daily high price over the last 200 days. This means if the highest price in the last 200 days was ₹100, the closing price must be greater than ₹105 to meet this condition.
  • The maximum daily high price over the last 30 days is less than or equal to the maximum daily high price from 8 days ago. This means that the highest price reached in the last month is not greater than the highest price from a week ago, indicating a potential decrease or stagnation in price movement over this period.
  • The filter checks if the daily trading volume of a stock is greater than its average volume over the last 50 days. This means the current volume must exceed the average volume by any amount, indicating increased trading activity compared to the past.
  • The daily closing price of the stock is greater than 90 Indian Rupees.

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., "Potential Breakout").
  • Copy the Scan and then open it from the scans dashboard.
  • Change the segment to your own watchlist of instruments. (e.g., “HDFC CASH”)
  • 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 “HDFC BANK”.
  • 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 Plan
    • A premium plan is essential for creating alerts and running screeners with real-time data.

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

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