Smart Trade Rules in Algofox

 Algofox smart bridge helps users identify the false signals and smartly ignore them. The rules can help users avoid all unwanted trades due to poor algo coding and even ignore the repainted signals to ensure a trader has smooth experienxe in automation. 

 Here are the trade rules and their detailed explaination : 

 1. A fresh Buy in a script will cancel all the previous pending orders : This is an important feature that comes in use when certain limit orders stay in pending mode and then next entry signal comes. Algofox will smartly ignore previous pending orders and then place fresh entry. 

 Example : User places a limit BUY order in SBIN at 400 and it stays open for sometime and after a while, there is another Buy signal in SBIN at 405, before placing the 2^nd order, our bridge will ensure the first order is cancelled since it was pending from long time and then process the 2^nd order. This also helps user save margin. 

 2. A fresh Short in Script will cancel all previous pending orders : This is a important feature that comes in use when certain limit orders stay in pending mode and then next entry signal comes. Algofox will smartly ignore previous pending orders and then place fresh entry 

 Example : User places a limit BUY order in SBIN at 400 and it stays open for sometime and after a while, there is fresh SHORT signal in SBIN at 405, before placing the 2^nd order, our bridge will ensure the first order is cancelled since it was pending from long time and then process the 2^nd order. This also helps user save margin. 

 3. Sell / cover modifies order quantity : when a user wants to exit the trades, the quantity while exiting should be less than or equal to entry quantity, it cannot exceed the entry quantity else it would result in position reversal. Our smart rule ensure that even if a trader has by mistake sent command of exit with a quantity greater than entry, algofox will smartly adjust it as per entry quantity. 

 Example : User places BUY order of 100 shares in SBIN using Algo and then while exit, the algo fires 200 shares, Algofox will smartly over write it to 100 shares to ensure only 100 shares are exited. However if the Algo fires an order with 50 shares to exit, Algofox will place only 50 shares exit, understanding that it is a partial exit. 

 4. Buy/Short only if there is no open position in that script : This rule ensures that If a strategy deployed by user has repainting signals and generating the same entry again and again it will be ignored smartly. 

 Example : If a User is using a strategy that generated BUY signal in SBIN and after every minute it is generating Buy orders in SBIN, only the first Buy will be executed and all other Buy signals will be ignored as they are repainting signals, similarly when there are multiple short signals sent, only first one will be executed and others will be ignored. This rule applies to Exit as well, if a system is generating Multiple Sell/cover, only the first one will be triggered and all others will be ignored smartly. 

 (Note : If you are using Pyramiding or scale in and multiple levels and intentionally want multiple entries and exits, please disable these trade rules)

Algofox risk management is to ensure user capital is protected, Algofox will not be responsible for any losses due to failure of Trade rules.