Comment on The rise of Algo trading platforms & everything you need to know

Shudh commented on 10 Dec 2021, 03:25 PM

The idea to block retail traders from using brokers api like now is extremely silly. This will send our digital adoption process many steps backwards if every broker has to take separate go-ahead for each customer. A quick solution should be allowing the brokers api for the tech-savvy retail customers as it is now.
The onus to take separate permission for the algo platform should be on the platform vendor. They should make public the backtesting data for each algorithm with quantifiable measures and risk and volatility for the user of the platform. If the user finds its performance a red-herring prospectus..then they could use that algo..let the api request response contain the signature of the platform that SEBI knows it is from the platform owners.
Again to repeat it is extremely silly to blanket ban or put under red-tape the technology adoption in the name of protection.. An old proverb – A fool and his money would be parted soon..despite all regulation..Lets not take the country backwards.. 🙂

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