Mobile payment apps, digital banks, online stock monitoring systems, and trading apps are just the crust of the vast fintech industry, which is booming in India. According to Inc42’s latest Funding Report, fintech, with $631.29 Mn invested across 70 deals, was the top sector in terms of the number of deals in H1 2018.
But despite the increasing proliferation of fintech solutions, trading is one area that hasn’t been completely disrupted or automated. Human involvement is necessary to make any trading decision, considering the volatility of stock markets around the world. Algorithmic trading seeks to change this. It is a method of executing a large order using automated pre-programmed trading instructions, accounting for variables such as time, price, and volume to send small slices of the order out to the market over time.
Algorithmic trading came to India only in 2008 when the Securities And Exchange Board of India (Sebi) allowed direct selling and buying of stocks and shares without the need for a broker. Though algorithmic trading is efficient and eliminates human errors and delays, one needs to learn coding to be able to do it. Kuants is changing the game altogether with its coding-free algorithmic trading platform.
Kuants, accelerated by India Accelerator, is a web-based platform that can be used by anyone and doesn’t require the person to have knowledge of computer programming. “Currently, almost 42% of the trade in the Indian market is done through automated algorithmic trading systems. But most of this trading activity is done by high net worth individuals (HNIs) and AIMs. We feel that the retail guys haven’t been given enough horsepower in it. So, we are trying to do just that,” says Ayush Gangwar, CEO of Kuants.
According to a NIFM report, the volume of trade that utilises algorithmic trading has witnessed a jump from 26.32% to 42% in four years. In March this year, 44.8% of the cash market volume and 48.2% of the equity derivatives market was driven by algo-trading, showed NSE data. On the BSE, 37.22% of trade in March 2018 was driven by algo-trading.
Kuants: How Two IIT Graduates Ended Up Making An Online Stock Simulator
The journey of Kuants started when Gangwar and his friend, Mohit Bansal (CTO, Kuants), started working on an online system to test trading strategies while studying at the prestigious IIT, Kharagpur. At the end of the project, the team ended up creating an online stock simulator and trading system.