Averaging

Averaging refers to an automated strategy that adjusts position based on movement of the market in a defined direction. This strategy is apt to be used when you have a market view and would like to increase or decrease your trade price to overcome market volatility

When To Use?

The averaging strategy works best in both cases: when the markets are on a high or even when they are low. Averaging helps in accumulating profits when you purchase in rising markets and if the markets are falling, it helps you reduce the average purchase price.



How it Works?

Orders are sent based on the above parameters

1Once the start time is reached, the first order is placed based on the averaging start price selected
2 If at the market is selected, the first order equal to the averaging quantity is placed immediately

If at Average Start is selected, the strategy checks for the current market price, whether it is equal to the Averaging Start Price or in the same Direction as selected by the user. Once this condition is met, first order equal to the Averaging Quantity is placed
3 The automated strategy keeps checking the parameters mentioned by user. As soon as the below two conditions are met:he market is selected, the first order equal to the averaging quantity is placed immediately
  • The last traded price different wrt last executed price is greater than or equal to the average entry difference
  • The Last Traded Price is in the same Direction as mentioned by the user




    • When not to use?

    We strongly recommend you to not use this for illiquid stocks (including out of the money options)

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