Sri Technocrat – Algo Trading using Zerodha API

Looking for:

Zerodha api for algo trading –

One of the most prominent providers among them is Zerodha, which provides wide range of services at competitive pricing. There are many ways in which they allow their users access to historic and real time data along with trade execution capabilities. But from an algorithmic trading perspective, the preferred way is using Kite Connect KC interface.

It is an Application Programming Interface API provided by Zerodha to us using which, we can even build full-fledged trading platforms with capabilities from capturing the data to executing and monitoring trades — all in real time! An application programming interface API is a protocol intended to be used as an interface by software components to communicate with each other. A software company like Amazon, Google etc releases its API to the public so that other software developers can design products that are powered by its service.

Using an API is like driving a car. This type of integration is called seamless, since the user never notices when software functions are handed from one application to another. A web server is a computer system that processes requests via HTTP, the basic network protocol used to distribute information on the World Wide Web.

Simply put, if you run a program on web server, it can be accessed over internet and loosely speaking, that program becomes the API which is designed to serve a set of specific tasks.

Now this API is called by the programs written by users to complete a set of tasks in a specific order automatically. Typically, each API constitutes multiple endpoints, each serving a specific purpose and when connected to, responds to the requester using a data format named JSON — a lightweight and well accepted format for data transfer. An example can be — to extract historical data for a set of securities, the KC API has a specific endpoint, which accepts specific inputs and provides predefined output as per input provided.

It is here that Web Socket technology comes in. It allows for active connections between requester the user program and provider the API which both parties can use to send data in real time. Obviously, data security and authorizations are valid concerns but the technology is pretty matured to address all these areas.

So by now, you should be familiar with the various jargons around API world and generally, would have gotten a handle on how this world works. It enables the users to create customized and full-fledged trading platforms as per their requirements.

Kite connect gives programmatic access to data that allows users to place orders across various segments and exchanges using any third-party software. Zerodha also offers Kite Publisher API that helps users to add one-click trade buttons to their website or app for a better user experience. Zerodha API is available to retail customers at a monthly fee. These charges do not include historical data API. The historical data API is an add-on to the Kite connect available at an additional cost of Rs per month.

Zerodha offers Zerodha trading APIs to individuals and start-ups , provided they have a Zerodha trading account. Zerodha API gives users programmatic access to historical data, positions, live quotes, fund movements that can help order placement, margin calculation, portfolio reporting, and much more. Zerodha offers different APIs to its users through Kite Connect to place, modify and cancel various order types like regular orders, after-market orders, cover orders, and GTT orders.

It also has an API to retrieve user holdings and positions and calculate margin values. Currently, Zerodha does not have any API to integrate the back-office data. There are various ways you can use Zerodha APIs to automate trading. You can convert your trading ideas into trading strategies using Zerodha APIs and build your own algorithmic trading system. It does not offer you access to any technical indicators. The technical indicators are required to be created on your own.

In case you plan to automate trading end-to-end, you are required to obtain the necessary exchange approvals to that effect. You can also use these Zerodha APIs to connect with third-party algo trading software like Amibroker to set up your trading strategies.

All of these require coding skills and programming knowledge. Apart from this, Zerodha also offers Zerodha Streak that allows you to do algo trading without any coding knowledge requirement. It is important to note that an algo to perform well requires thorough back testing before implementing it to live.

Zerodha WebSocket API allows you to access 3, instruments across all exchanges on a single WebSocket connection and receive live quotes for them during market hours that include open, close, high, low, and market depth view for the top five orders. It also provides notifications for order updates in the form of text messages. The request token is the token that gets generated on the registered redirect URL on successful login.

The historical data API provides users with archived data for several years back in time. The data is available for all instruments across various exchanges and contains the timestamp, Open, High, Low, Close, Volume, and OI open interest.

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. 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. Then the user will “Select The Symbol” for which trading will be done. 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.

– Zerodha api for algo trading

Zerodha API is one of the innovative new-age features offered by Zerodha to enhance the user trading experience across all segments. It has a. Super simple trading APIs. Build full fledged trading platforms with simple HTTP/JSON Let 7+ million clients of Zerodha seamlessly access your platform.