Compliant Automated Trading

The core principles

Compliant retail automation means: you control the account; you authorise execution; the system executes via your broker's regulated API; and you can revoke access at any time. Sleeping Trade is designed around all four.

Red flags

Avoid any system that asks for your broker login / password (as opposed to API credentials), requires you to fund a pooled wallet, promises guaranteed returns, or is operated by an anonymous group. These are scam or non-compliant patterns.

Transparency in pricing

A compliant service has flat fees, not profit-share. Profit-share triggers advisory / PMS-like regulatory considerations. Sleeping Trade is flat subscription only.

Audit trail

Every Sleeping Trade order appears in your broker's trade book with timestamps. Your P&L, tax statements, and contract notes come from your broker — not from us. This is the audit trail you need for compliance and tax.

Disclaimer: Educational content. Not legal or investment advice. Regulations change — consult a qualified professional for your specific situation.

What this means for you

If you are evaluating an automated trading service, this is the checklist: API-only access (not your login/password), funds remain in your own broker account, flat fees rather than profit-share, registered legal entity, transparent disclosures.

Anything that asks you to fund a wallet, share login credentials, or pay based on profit-share is operating outside SEBI's compliant retail automation framework. Walk away.

How Sleeping Trade stays compliant

Sleeping Trade is built around all four compliance principles: trade-only API access, funds always in your demat, flat subscription pricing, and registered legal entity (US LLC) with India market focus.

We never see your broker password. We cannot transfer funds. You can revoke API access from your broker dashboard at any time, instantly cutting our access. Trades appear in your broker statement with timestamps for an audit trail.

Frequently Asked Questions

How do I verify Sleeping Trade is compliant?

API-only access (not login), flat-fee pricing (not profit-share), funds remain in your broker. All three are verifiable from our pricing page and onboarding flow.

Are profit-share trading services illegal?

Not necessarily — but they typically require PMS or RIA registration. Most informal profit-share services in India are operating outside compliance.

Can SEBI come after me for using an automated trading service?

Using a compliant service is not a SEBI risk to the user. Using an unregulated profit-share service may expose the operator to regulatory action; the user is generally not the target.

Practical compliance signals to look for

A compliant service shows you the API authorisation flow on the broker's domain — not on the vendor's domain. If you are asked to enter your broker password into a vendor form, walk away.

A compliant service shows you the trade book in your broker statement — not just on the vendor dashboard. If trades only appear on the vendor side, you do not have an audit trail you can defend.

A compliant service charges a flat fee or per-trade fee — not a profit share. Profit-share invokes PMS-like regulatory considerations that most operators are not registered for.