How KITE Connect API Differs from ROBO Trading Software?

How KITE Connect API Differs from ROBO Trading Software?

I am not asking legal point of view, I want to know about Technology and Reliability.

Think of the APIs as IT infrastructure…you can use this to build solutions.

API gives your programmatic access to markets, what you choose to do with this is upto you. You can even choose to build a Robo advisory or an investment platform.


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Very good question. People always ask why I pay Rs4000-10000 to do auto trade with Pi/Nest Trader/Kite Connect when same is available in RoBo Trader for Just Rs500-2000

First and foremost thing is that all Robo Traders are not using any API to place order in Terminal.
For those who new to ‘API’ please refer this link

You may ask why should I bother about API as my goal is just to place order automatically in the Terminal…?Whether the order is placed through API or not, what’s the difference…? Both are Placing Orders only…?

The Key Difference is when you place Order using the API, the communication is guaranteed and it is sure that your order request will reach the Terminal without any loss of data and where as when you place order using ROBO, the communication is not guaranteed as the ROBO is not using the API to communicate with the Terminal instead it using indirect method to communicate with terminal and sends order request.

Let me Explain with Example:-
Suppose, You have open Position and its going against you, so your system automatically trying to place a order to close that position using ROBO,What will happen if the order request is not communicated properly to the terminal and you are running a unattended trading setup.You will end up in big loss.

On the other hand, when using API, the communication is guarnteed and your position will be closed on time.
That doesn’t mean that if use API, it will work without any problems.Errors may also occur even when use API.There is always risk of fail associated with each and every software and no software is guaranteed to work 100% without fail.So issues and errors are part of the software that cannot be eliminated but can be reduced to minimum level.

But the thing is that when You use API,the Risk of Fail is very much reduced when compared to ROBO Softwares.

Timing is very important in Stock Trading, even a 1 second delay will result in big loss or even wipe out your entire capital.Using API for Auto trade will increase performance and reliability as well as fast execution of requests than ROBO.

Let us go little bit deep…
Currently, Most of the ROBO’s are built for Nest Trader only.
Basically ROBO’s are two types based on how they implement communication with terminal

  1. ROBO’s using windows messaging
  2. ROBO’s using UI Automation

ROBO’s using Windows Messaging.
In this type of ROBO software’s, the order request is pumped into the program message queue using DLL injection.Whenever a program is running, each and every action you do with that program is executed in sequence using windows messaging.

A Simple way to understand this type of ROBO is,
Suppose ‘A’ is talking to ‘B’ using landline and the conversation is going fine.In between ‘C’ has interfered their communication using parallel line and started communicating simultaneously.Now **the entire communication goes messy.**Here ‘C’ is the ROBO. This kind of software’s will lead to system crash/Malfunction and increases risk of fail.

ROBO’s using UI Automation
You can also build this kind of ROBO yourself with free software’s like Auto-It etc.
You can manipulate click and typing text in text-box of a windows application using UI Automation.This type software’s uses macro and send keys to manipulate order placement.This software’s will open the Order Window by sending Keystrokes as you do and fill order details like exch Quantity etc… and press submit button.If you use mouse or key board or use another program during order placement, it will interfere with this software and will
fill/select wrong details.

This kind of software will fail to work

  1. On Cloud Server as no Physical Monitor
  2. If system goes to sleep
  3. If the user is locked.
  4. Other GUI programs running
  5. If the display is Turned Off

As You can see, the ROBO’s are actually not having any proper communication with the Terminal and they are implementing/using improper or unreliable method to place order in terminal.

On other Hand, API’s are part of the Terminal and have standard communication protocol to request or retrieve data.

API supports more features than ROBO.
ROBO’s are a kind of one way communication where as API’s are two way communication
With API, You can request as well as receive response, on the other hand ROBO will not get any response from the terminal as it is not actually communicating with terminal.

With ROBO, You will not get the status of the Order Placed as response,
But with API, you will get the order status as response

Other than this, With API you can check Positions, Trade Book, Order Book, Funds etc
But with ROBO, the scope is limited to Order Placement that too not guaranteed.

It is not possible to have a complete trading setup with ROBO, but with API’s you can have complex trading setup and Risk management.

API’s are very flexible, you can use it as you wish.

1. You wanted to Place Buy Order in SBI Future by tracking SBI-EQ in cash market at the same time you also want to Hedge your position by buying OTM SBI PE option.

2. You can also trade Nifty Options by Tracking Nifty Future support and resistance level .

These can be easily done by API but not by any ROBO

With API,You can do lot more than the traditional trading platforms offers.
You can create custom BO with SL-M Entry.
You can Create Order with Multiple Target etc…
The Scopes are unlimited.

But with ROBO, You can not do such.

In a Nutshell:

  1. ROBO Software’s are not using any API to communicate with Terminal
  2. Communication is not guaranteed
  3. They are not reliable and fast.
  4. They will not receive any response from the Terminal
  5. A Complete Trading Setup with risk management is not possible
  6. They may not work on Cloud Server.

When You setup Algo/Programmatic trading, try to keep the Risk of Fail at bare minimum level by using good API’s/Software’s/Resources and always keep in mind that Risk Of Fail can’t be eliminated but can be reduced.


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