Automate Your “Strong Stocks” Strategy Using Chartink and AlgoTest

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.

Strong Stocks filters explanation:

The filter checks if the current daily closing price of the stock is higher than the closing price from the previous day. This indicates that the stock has gained value compared to the last trading day, reflecting a positive price movement.
The filter checks if the closing price of the stock one day ago is higher than the closing price two days ago. This means that the stock has increased in value from two days ago to one day ago, indicating a positive change in price over that period.
The filter checks if the closing price of the stock two days ago is greater than the closing price three days ago. This means that the stock's price has increased over that period, indicating a positive change in value. For example, if the closing price two days ago was ₹100 and three days ago was ₹90, this represents an increase of approximately 11.11%.
The filter checks if the closing price of the stock three days ago is greater than the closing price four days ago, indicating a positive change in the stock's value over that period. This means that the stock's price has increased by a certain percentage from four days ago to three days ago.
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:

Go to Chartink and log in to your account.

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., "Strong Stocks").
Copy the Scan and then open it from the scans dashboard.
Change the segment to your own watchlist of instruments. (e.g., “Axis Bank”)
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 “Axis 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:some text

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:

Chartink Premium Plansome text
- A premium plan is essential for creating alerts and running screeners with real-time data.
AlgoTest Signal Plansome text
- Activate the AlgoTest Signal plan to connect your strategy with Chartink alerts.
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: