What is ALGORAM? A Complete Guide to Our Automated, Rule-Based Algo Trading Software

About ALGORAM: Software That Brings Discipline to Trading

ALGORAM is an Indian fintech company that builds automated, rule-based algorithmic trading software for Indian markets. The software connects to your 5paisa broker account, checks the market every minute during trading hours and carries out predefined strategy rules (entries, exits and risk limits) without manual order entry.

We built ALGORAM around a simple observation: a trading plan is only as good as its execution, and execution is where discipline most often breaks. An entry gets skipped out of hesitation, a stop-loss is moved "just this once", a revenge trade follows a loss. Predefined rules and automatic orders keep execution consistent from one trade to the next.

Who we serve: traders and trading businesses who prefer systematic, rule-based execution to discretionary trading.

What we are not: ALGORAM is a software provider. Your money stays in your own 5paisa account. We do not hold client funds, manage money, or give investment advice, tips or recommendations.

Who is behind it: ALGORAM was founded by Ankit Patel (Founder & Managing Director) and Rahul Patel (Founder, Managing Director & CTO). The strategy engine, the execution service and the customer web panel are built and run by our own engineering team in Ahmedabad.

The Problem: Challenges Many Manual Traders Face

Not every trader struggles with all of these, but most active traders will recognise a few:

• Emotional decisions: fear and greed can override a well-made trading plan
• Delayed execution: manual order entry lags behind the moment a setup appears
• Inconsistent discipline: rules get bent after a big win or a painful loss
• Too many instruments: it is hard to watch many charts and option strikes at once
• Order-entry mistakes: wrong strike, wrong side or wrong quantity under time pressure
• No predefined limits: without hard limits, a losing day can keep getting worse
• Screen time: active trading competes with work and family

Automation targets the problems that come from manual execution. It does not remove market risk, and it cannot turn a weak strategy into a good one. That is why the rest of this guide spends as much time on risk controls as on features.

How ALGORAM Works: From Market Data to Trade Log

Every trading day, the same pipeline runs once per minute from 09:15 to 15:30 IST:

1. Market dataLive prices from 5paisa and market-data feeds
2. Curated watchlistsIndex-option ATM strikes rebuilt daily at 09:16 IST
3. Strategy evaluationPredefined rules checked every minute in market hours
4. Quality filtersTrend strength, option premium and bid-ask spread
5. Per-user risk checksKill switch, trade caps, daily loss, capital and margin
6. Order placedMarket order through 5paisa, with an SL-M stop where enabled
7. Position monitoringStop-loss, target and trailing stop checked every minute
8. ExitAn exit rule is hit, or the position is squared off at 15:15 IST
9. Records & alertsBroker reconciliation, ledger entry and notifications

Each step depends on your configured rules, the 5paisa API being available, network connectivity, market conditions and an active broker login each trading day.

Feature Overview, With Honest Status Labels

Many trading-software websites list every feature as if it were available to everyone. We'd rather tell you exactly where each one stands:

Live running in production  ·  You configure you set it in Trading Settings  ·  Set by ALGORAM we configure it per strategy or account  ·  Selected accounts enabled for selected strategies or accounts  ·  Rolling out built, being switched on

Watchlists & Instruments: What the Strategies Watch

Instruments: NSE equities, index options (NIFTY and BANKNIFTY, others as configured) and stock options. Strategies trade from ALGORAM's curated watchlists. Your personal watchlists are for tracking.

Decision cycle: once per minute during market hours (09:15–15:30 IST), not tick-by-tick. ALGORAM is built for disciplined, rule-based intraday execution, not high-frequency trading.

Automated Buy & Sell, Step by Step

1. DetectStrategy conditions are met in the minute cycle
2. ValidateQuality filters and the entry time window pass
3. CheckAbout 20 sequential guards: kill switches, auto-trade on, live trading allowed, trade caps, daily loss, capital bucket, margin
4. PlaceMarket order through 5paisa on the intraday product, with a broker-side SL-M stop where enabled
5. MonitorOpen positions are checked every minute
6. ExitStop-loss, target, trailing stop, strategy exit or the 15:15 square-off
7. RecordOrder status, errors, ledger entry and post-market reconciliation

Stock Options & Index Options Automation

Option buying (CE / PE) Live

ALGORAM buys a call (CE) or a put (PE) in the direction of the signal. The signal is evaluated on the option contract's own price chart, so entries and exits follow the premium you actually trade.

• Automatic ATM strike and expiry selection
• Index options on NIFTY and BANKNIFTY (others as configured), plus stock options
• Minimum-premium and maximum bid-ask-spread filters, to avoid illiquid strikes
• A market-direction guard that blocks option entries going against the index's move since the open
• Maximum lots per position, set by you

Hedged option selling Selected accounts

Sells an option on a trend signal and buys a further out-of-the-money option as a hedge leg to cap the loss. Unlinked hedge legs are closed automatically.

Option baskets Selected accounts

Multi-leg, defined-risk structures (iron condor, bull call spread, bull put spread, bear call spread and bear put spread). A market-regime classifier picks the structure using the put-call ratio and price action.

Predefined, Rule-Based Strategies

You do not write code or build strategies on ALGORAM. Our team designs, tests and maintains a set of rule-based strategy families. Each follows the same chain: indicators → conditions → entry → stop-loss / target / trailing stop → exit.

ALGORAM decides which families are available on each account. Strategy-level settings (timeframes, stop-loss type as a percentage or a fixed rupee amount, target, trailing stop and entry time windows) are configured per strategy by our team. We do not publish win rates. The How to Judge Any Algo section explains why.

Smart Capital Allocation: Capital Split by Segment, Sized per Trade

1. Sync capitalYour real balance is fetched from 5paisa
2. Segment bucketYou choose a percentage for each segment
3. Per-trade sizeA percentage of the bucket per trade, e.g. 25% ≈ four parallel trades
4. Max lotsA hard cap per F&O position
5. Margin checkNot enough margin means the trade is skipped, not resized

Illustrative split, you choose the percentages

A minimum allocation fill setting skips a trade rather than under-sizing it when a bucket cannot fund the intended size. Risk-profile presets (Default, Aggressive, Conservative) give you a starting point that you can then fine-tune. Allocation limits your exposure per segment. It does not guarantee returns or protect capital.

Risk Management: Layered Controls

Risk management is the core of the product. Controls work in three layers: your own settings, strategy and platform rules, and execution safeguards that run before and after every order.

Broker Integration: Connected to 5paisa

Monitoring & Notifications

Trade alerts are delivered as push notifications. Our Telegram and WhatsApp channels are for support conversations only. They do not send trade alerts, signals or tips.

Paper Trading, Backtesting & Replay

Every strategy should be seen working before real money is at stake. ALGORAM has three ways to look at a strategy, and it's important to know how they differ:

The Customer Web Panel

Everything you do on ALGORAM happens in a browser-based panel at app.algoram.in, which you can also install on your phone or desktop home screen as a web app:

• Dashboard: activity and P&L overview
• Stocks & watchlists: track instruments and open stock detail pages
• Algo Paper / Algo Real: paper and live trades with their status, plus the broker order book
• Ledger: running balance, net P&L and estimated charges
• Trading Settings: capital split, risk limits, presets and the auto buy/sell switch
• Profile → Broker: connect your 5paisa account
• Notifications: choose which alert types you receive
• Support: an in-app conversation with our team

Sign-in uses email OTP two-factor authentication. ALGORAM sets whether each account sees Paper, Real or both.

Technology & Security

Under the hood, ALGORAM is a pipeline of specialised services, built and run in-house:

1. Market data5paisa API and market-data feeds
2. Signal engineA Python service that evaluates strategies every minute
3. Signal streamHands signals from the engine to execution
4. Execution & risk serviceGuard checks, orders, monitoring and exits
5. 5paisa APIOrders and positions on your broker account
6. Ledger, dashboards & alertsReconciliation, reporting and notifications

It runs on cloud servers with a database, an in-memory cache and supervised background workers, alongside an internal admin console and a partner portal.

Security measures

• Email OTP two-factor authentication for login and sensitive actions
• Token-based API authentication
• Role-based permissions in the admin console
• Audit logs
• A static outbound IP assigned to each user
• No client funds held: money stays in your 5paisa account

A Trade, Start to Finish

⚠️ Hypothetical example, not actual ALGORAM performance

To make the workflow concrete, here is how one index-option trade could move through the system. All numbers are illustrative.

In a real market the same trade could just as easily hit its stop-loss, or the exit could fill well below the trigger in a fast move. Hypothetical illustration. Prices, fills and charges will differ.

How to Judge Any Algo Trading System

You won't find win rates or return figures in this guide. Past performance, whether simulated or live, doesn't guarantee future results, and Indian regulations restrict how algo providers can advertise returns. Whichever platform you consider, including ours, ask for these:

• Net returns after costs: brokerage, STT, exchange fees, GST, stamp duty and taxes
• Slippage and execution quality: the gap between signal price and fill price
• Maximum drawdown: the deepest peak-to-trough fall, which you need to be able to sit through
• Win rate together with risk-reward: a high win rate means little if the average loss is three times the average win
• Sample size and period: how many trades, over how many months, across which market conditions
• Live versus simulated: which numbers come from real fills and which from a backtest
• Capital utilisation and liquidity: can the strategy actually be traded at your size?

The best way to evaluate ALGORAM is to run it on paper first and judge it on these metrics with your own eyes.

Who Is ALGORAM For?

What you need: a 5paisa account with API access, the F&O segment enabled for options, a daily broker login and a clear understanding of trading risk. ALGORAM is a trading tool, not a passive-income product. You remain responsible for your trading decisions and your risk.

Pricing & Services

Subscription: 1% of your trading capital per month, with a minimum of ₹2,999 per month. All automation features are included. See the pricing page for current terms.

Partner programme: a partner portal for onboarding partners and inviting users.

Technology services (on request): custom trading-software development, broker and market-data API integration, web and admin applications, cloud/VPS deployment, and annual maintenance and support.

We do not offer portfolio management or investment advisory services.

Where We're Heading Proposed

These are directions the founders intend to evaluate. They are not available today, and their scope and timing are not committed:

• More broker integrations: the software design already allows additional brokers
• Customer backtest reports: self-serve strategy reports inside the panel
• AI-assisted analytics: recommendations that a human must approve and that cannot place trades
• Native mobile app for Android and iOS
• More alert channels beyond push notifications
• Customer risk dashboard: exposure and limits at a glance

Special Offer: First 100 Customers

Conclusion & Contact

ALGORAM exists for one reason: to make sure your trading rules are followed every minute of the trading day, the same way every time, with risk limits that are checked before every order rather than remembered after a loss. What sets the approach apart isn't a promise of returns. It's the discipline built into the workflow:

• Rule-based execution: predefined rules applied every minute, without emotion
• Capital by segment: you decide the split across stocks, F&O and baskets
• Layered risk checks: about 20 checks before every live order
• Two kill switches: yours for the day, and ours for the whole platform
• Paper-first testing: the same live signals before real capital
• Reconciliation and audit trail: positions checked against the broker after close, and decisions logged

If that's the way you want to trade, the best next step is to request a demo and see it run on paper.

ALGORAM provides algorithmic trading software and related technology services. It is not an investment adviser, research analyst or portfolio manager. Trading in equities and derivatives involves market, execution, liquidity and technology risks; options trading can result in substantial losses. No return or capital protection is guaranteed. Backtested, Replay and paper-trading results may differ materially from live results. Users should independently assess suitability, costs and applicable regulatory requirements before trading.

Frequently Asked Questions

Rahul Patel

Founder, Managing Director & CTO, ALGORAM

Rahul leads technology at ALGORAM: the signal engine, the execution and risk service, and the customer web panel described in this guide. He writes about how trading automation works under the hood, and about what it can and cannot do for a trader.