Algo Trading using Zerodha API

We are using Zerodha API for Algo Trading. Algorithmic Trading is a process to Buy or Sell script for intraday on some pre-defined set of rules which are back tested on Historical data. These rules can be based on Technical Analysis, charts, indicators or even Stock fundamentals. These rules are also defined as strategies. User can do trading at a speed and frequency which is not possible for the human.

Process Flow

Since we have developed the algo trading platform based on Zerodha API for users who can do computer programmed based algo trading in less than seconds which is not possible in real manual trading.

After the user login to our software, the user will enter the API key and Secret key which is provided by the broker i.e. Zerodha, key acts as authentication for any trading done between trader and broker terminal. With this key, the trader will log in to the broker terminal and then use it for the subsequent request. After entering the key user will select the exchange like NSE, MCX, CDS, etc.

Then the user will "Select The Symbol" for which trading will be done. These symbols are the stock/share. Users can select the quantity of each share to be traded.

After deciding the number of shares to be traded, then comes the jobbing type. This jobbing is the strategy which is computer programmed. On selecting any jobbing type buy/sell will be initiated automatically based on the strategy. User can share their strategies which they use on the manual terminal for buying or selling order with us, which can be programmed and simplifies the trading. Here we have listed 4 strategies namely, Pivot Point, Pivot Point-Fib, Advanced Pivot, and Advanced Camarilla.

Once all these above fields are saved, the user will start jobbing. The system will place the buy and sell orders when the defined conditions/strategy is met. The trader no longer needs to keep a watch for live prices and graphs, or put in the orders manually. The algorithmic trading system automatically does it for him, by correctly identifying the trading opportunity.

After clicking on start jobbing, this button will change to "Stop Jobbing". Traders will also have an option to delete the symbol. In the activity, the column traders can view the activity like start jobbing, stop jobbing, or no activity.

This algo trading platform will let trader do automatically trading on broker terminals etc. As seen in the image below all orders are executed buy and sell in a fraction of seconds as per a defined set of rules.

Benefits

1. Since it's an algorithm-based computer programmed trading so it reduces emotional or psychological error.
2. Orders are placed in a fraction of a second which is humanly not possible. A large number of orders can be placed and executed across multiple stock/shares.
3. All strategies are based on real-time and historical data, reducing risk in placing a trade.
4. Reduced error caused due to manual trading.

The package will help in doing algo trading zerodha.