Is there a way to completely automate trading on Zerodha?

Algos, strategies, code
1

I want to know if there is a way of completely automating trading on Zerodha Pi which should include automated buying and selling based on the script defined by me!

2

Possible, but requires you to be an authorized person, get exchange approvals and etc. You can email [email protected] for more details.

3

Thank you for the response! Can you give me some more details about the procedure?

4

Isn’t developers.kite.trade (Kite API) the route for automating trading? I couldn’t find any documentation (may have missed) on developers.kite.trade which specifies exchange approval requirement.

My understanding with developer account:

  1. User must have a Zerodha active account
  2. User should open developer account, and grant access to kite.
  3. Add 2000 credit to start accessing APIs
  4. Write scripts/programs/algos to automate trades. User can buy/sell using respective APIs
5

@nithin Please comment is my understanding correct?

1 Like
6

Hi
Yes, you are correct.
Kite API is pre approved by exchange.
You can do programmatic Trading.
The only requirement is that you must know programming or have a person who knows programming.

7

Thanks for clarification (I got confused by nithin’s reply)

8

In India, using the word “Auto Trade” is perceived as offence or something illegal. So using the word “Programmatic trading”.

The actual restrictions is for those who have direct access to market and doing trades in microseconds (1/1000000 sec).They have leased lines that connected directly to exch.Since they have fast connectivity and advanced information, their trades may impact normal investors and ruin their hard-earned money.So SEBI & exchange made rules to regulate them

But API’s like kite connect are approved & tested by exchange for risk.

All orders are routed to broker OMS and validated for margins and finally sent to exch.all this takes .5 -1 sec. So programmatic Trading using broker API is not equal to those who Algo trade using DMA like FII’s.

Just this API’s are meant for reducing manual work and fat fingerings.

It is not possible to ruin other investors (by placing orders in microseconds) or manipulate market (Buying/selling large qty) by using broker’s API.

The word Auto trade is not at all applicable to broker’s API and they are safe to use by retail clients.

4 Likes
9

Thanks for the detailed clarification @botany02.

Let’s consider buy/sell scenario:
Using Kite API I run/schedule a program for daily placing a stop-loss order based on some logic. [SELL]
Using Kite API I run/schedule a program daily to buy some quantity of a stock based on some logic [BUY]

As I understand your comments, such purely system driven execution of buy/sell are not considered automation but are generically called programmatic as this is not direct access but routed via broker’s system. Right?

10

@hvt
Yes exactly…

1 Like
12

Check this thread and my responses on them. Totally grey area this this is.

1 Like
13

@nithin: Is there a sandbox area for learning the KiteAPI’s and executing them before subscribing with actual credits?

14

Has been on our list of things to do. Will take more time.

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15

Hey Mohit, we did develop our tool. But we lack the method let me know if you are interested. You can email me at [email protected]

16

How much are the backrest results reliable in pi.

1 Like
17

Nitin,

can you please let me know why i am getting different result in backtest and live market through EA.

18

The data available to backtest is usually 1 min OHLC or higher time frame candles. You don’t get live data to backtest on. What this means is that backtest will always be done on that 4 points (OHLC) that you have for a timeframe.

In real markets, EAs trigger whenever the conditions are met, they don’t wait for end of candles.

Btw, check out streak

19

i tried streak, but it is nothing compared to pi. only issue i am facing with pi is that it crashes a lot.

i contacted helpdesk. but even that didn’t help much.

can you do one more enhancement in pi?

please extend the backtesting to live data without actually executing the trade on exchanges with mock currency.

for e.g you can charge may be 1000 rs for say mock currency of Rs 100000 that can be used for doing backtesting of strategy on live data.

there is limitation on no of charts that can be used for backtesting, this must be increased.
the editor is not perfect and some versioning feature should be there for backtesting.
based on the alert the order should be filled automatically if we decide to act on alerts.

Nitin, you have given us a good tool against machine trades so let’s make it more human friendly to compete.

20

Hi all, I want to whether I can automate a trade in a way that I buy/sell a script based on a trigger in a different script. For example, I might buy a bank stock after a bullish crossover in bank nifty? Can someone please let me know whether this is possible in PI or Kite?

Thanks
Muthu Nagarajan

21

if you made sandbox to practice .I am sure many will come out to subscribe your additional innovative products as nobody wants to take risk in live market with new products.