Algorithmic trading is a way of trading in which we can tell our strategies to our computer and then computer can talk to the broker and execute our strategies. Now, there are two questions. First, how can we talk to our computer? And the second one is how the computer can talk to the broker to execute our strategy?
There are many languages in which we can talk to our computer. One of the language is Python.
And there is a way that our computer can talk to the broker and that is done using the API. All the prominent brokers in India provide their API.
Examples of some api that brokers provide
Now, What can the API do for us?
It can call the historical data for any script.
API can help us to place the orders into the broker’s account.
Using the API, we can get our position book, order book, holdings.
Using the API, we can get tick-by-tick data.
Now, for an example, below is a API call that we can use to get the available margins in our account.
kite.margins()Also, below is the API call. By using it, we can get the historical data as well. Also, we can get the historical data for index, for equities, for options, for commodities, any tradable script that our broker provide.
historical_data = tsl.get_short_length_hist_data(name="ACC", exchange="NSE", interval="5minute", oi=True)
Now, below is the example that we have created using Dhan API, which automates the entire RSI-based strategy. You can take a look at the code, try to understand it, and if you have any questions, you can reach me on LinkedIn for your questions.
import pdb
import time
import datetime
import traceback
from Dhan_Tradehull import Tradehull
import pandas as pd
from pprint import pprint
import talib
import pandas_ta as ta
import xlwings as xw
import winsound
client_code = "1102790337"
token_id = "eyJ0eXAiOiJKV1QiLCJhbGciOiJIUzUxMiJ9"
tsl = Tradehull(client_code,token_id)
watchlist = ['BEL', 'BOSCHLTD', 'COLPAL', 'HCLTECH', 'HDFCBANK', 'HAVELLS', 'HAL', 'ITC', 'IRCTC', 'INFY', 'LTIM', 'MARICO', 'MARUTI', 'NESTLEIND', 'PIDILITIND', 'TCS', 'TECHM', 'WIPRO']
single_order = {'name':None, 'date':None , 'entry_time': None, 'entry_price': None, 'buy_sell': None, 'qty': None, 'sl': None, 'exit_time': None, 'exit_price': None, 'pnl': None, 'remark': None, 'traded':None}
orderbook = {}
wb = xw.Book('Live Trade Data.xlsx')
live_Trading = wb.sheets['Live_Trading']
completed_orders_sheet = wb.sheets['completed_orders']
reentry = "yes" #"yes/no"
completed_orders = []
bot_token = "8059847390:asdasdsad-asdasasd-asdasdsd-asdasd"
receiver_chat_id = "1918451082"
live_Trading.range("A2:Z100").value = None
completed_orders_sheet.range("A2:Z100").value = None
for name in watchlist:
orderbook[name] = single_order.copy()
while True:
print("starting while Loop \n\n")
current_time = datetime.datetime.now().time()
if current_time < datetime.time(13, 55): print(f"Wait for market to start", current_time) time.sleep(1) continue if current_time > datetime.time(15, 15):
order_details = tsl.cancel_all_orders()
print(f"Market over Closing all trades !! Bye Bye See you Tomorrow", current_time)
pdb.set_trace()
break
all_ltp = tsl.get_ltp_data(names = watchlist)
for name in watchlist:
orderbook_df = pd.DataFrame(orderbook).T
live_Trading.range('A1').value = orderbook_df
completed_orders_df = pd.DataFrame(completed_orders)
completed_orders_sheet.range('A1').value = completed_orders_df
current_time = datetime.datetime.now()
print(f"Scanning {name} {current_time}")
try:
chart = tsl.get_historical_data(tradingsymbol = name,exchange = 'NSE',timeframe="5")
chart['rsi'] = talib.RSI(chart['close'], timeperiod=14)
cc = chart.iloc[-2]
# buy entry conditions
bc1 = cc['rsi'] > 45
bc2 = orderbook[name]['traded'] is None
except Exception as e:
print(e)
continue
if bc1 and bc2:
print("buy ", name, "\t")
margin_avialable = tsl.get_balance()
margin_required = cc['close']/4.5
if margin_avialable < margin_required: print(f"Less margin, not taking order : margin_avialable is {margin_avialable} and margin_required is {margin_required} for {name}") continue orderbook[name]['name'] = name orderbook[name]['date'] = str(current_time.date()) orderbook[name]['entry_time'] = str(current_time.time())[:8] orderbook[name]['buy_sell'] = "BUY" orderbook[name]['qty'] = 1 try: entry_orderid = tsl.order_placement(tradingsymbol=name ,exchange='NSE', quantity=orderbook[name]['qty'], price=0, trigger_price=0, order_type='MARKET', transaction_type='BUY', trade_type='MIS') orderbook[name]['entry_orderid'] = entry_orderid orderbook[name]['entry_price'] = tsl.get_executed_price(orderid=orderbook[name]['entry_orderid']) orderbook[name]['tg'] = round(orderbook[name]['entry_price']*1.002, 1) # 1.01 orderbook[name]['sl'] = round(orderbook[name]['entry_price']*0.998, 1) # 99 sl_orderid = tsl.order_placement(tradingsymbol=name ,exchange='NSE', quantity=orderbook[name]['qty'], price=0, trigger_price=orderbook[name]['sl'], order_type='STOPMARKET', transaction_type ='SELL', trade_type='MIS') orderbook[name]['sl_orderid'] = sl_orderid orderbook[name]['traded'] = "yes" message = "\n".join(f"'{key}': {repr(value)}" for key, value in orderbook[name].items()) message = f"Entry_done {name} \n\n {message}" tsl.send_telegram_alert(message=message,receiver_chat_id=receiver_chat_id,bot_token=bot_token) except Exception as e: print(e) pdb.set_trace(header= "error in entry order") if orderbook[name]['traded'] == "yes": bought = orderbook[name]['buy_sell'] == "BUY" if bought: try: ltp = all_ltp[name] sl_hit = tsl.get_order_status(orderid=orderbook[name]['sl_orderid']) == "TRADED" tg_hit = ltp > orderbook[name]['tg']
except Exception as e:
print(e)
pdb.set_trace(header = "error in sl order cheking")
if sl_hit:
try:
orderbook[name]['exit_time'] = str(current_time.time())[:8]
orderbook[name]['exit_price'] = tsl.get_executed_price(orderid=orderbook[name]['sl_orderid'])
orderbook[name]['pnl'] = round((orderbook[name]['exit_price'] - orderbook[name]['entry_price'])*orderbook[name]['qty'],1)
orderbook[name]['remark'] = "Bought_SL_hit"
message = "\n".join(f"'{key}': {repr(value)}" for key, value in orderbook[name].items())
message = f"SL_HIT {name} \n\n {message}"
tsl.send_telegram_alert(message=message,receiver_chat_id=receiver_chat_id,bot_token=bot_token)
if reentry == "yes":
completed_orders.append(orderbook[name])
orderbook[name] = None
except Exception as e:
print(e)
pdb.set_trace(header = "error in sl_hit")
if tg_hit:
try:
tsl.cancel_order(OrderID=orderbook[name]['sl_orderid'])
time.sleep(2)
square_off_buy_order = tsl.order_placement(tradingsymbol=orderbook[name]['name'] ,exchange='NSE', quantity=orderbook[name]['qty'], price=0, trigger_price=0, order_type='MARKET', transaction_type='SELL', trade_type='MIS')
orderbook[name]['exit_time'] = str(current_time.time())[:8]
orderbook[name]['exit_price'] = tsl.get_executed_price(orderid=square_off_buy_order)
orderbook[name]['pnl'] = (orderbook[name]['exit_price'] - orderbook[name]['entry_price'])*orderbook[name]['qty']
orderbook[name]['remark'] = "Bought_TG_hit"
message = "\n".join(f"'{key}': {repr(value)}" for key, value in orderbook[name].items())
message = f"TG_HIT {name} \n\n {message}"
tsl.send_telegram_alert(message=message,receiver_chat_id=receiver_chat_id,bot_token=bot_token)
if reentry == "yes":
completed_orders.append(orderbook[name])
orderbook[name] = None
winsound.Beep(1500, 10000)
except Exception as e:
print(e)
Also, learning how to automate your strategies using algorithmic trading is a skill. And yes, definitely it’s a learnable skill. If you are interested, you can join our algorithmic trading course and start your journey right away.
