Legality of Automated or Algorithmic Trading in India is a gray area. The most relevant legal document we could find is here.
Algorithmic trading can be risky, if your algorithmic setup has bugs. The primary reason for having restrictions on algorithmic trading is the lack of knowledge among retail clients about the risks involved in this area. Having said that, looking at the amount that most retail traders trade with; the possibility of their algorithm affecting the market is small. The discussion of the risks are beyond the scope of this article.
Technically speaking, some of the advanced features offered by brokers like Bracket Order or Cover Order also fall under algorithmic trading.
AutoTrader is an automation tool which is built to reduce data entry work for retail clients & give them an edge in the ever growing algorithmic trading market. Many retail clients use different types software for automation.
AutoTrader supports both modes semi & fully automated trading. Users can use any mode of their choice. It is the responsibility of the users to get necessary approvals automated trading.