Zerodha Algo Trading: Features, Charges, and Demo

Zerodha Algo Trading is a platform that allows users to automate their trading decisions using algorithms. This platform is designed for both beginners and experienced traders.

One of the key features of Zerodha Algo Trading is its ability to execute trades at lightning-fast speeds, making it ideal for those who want to take advantage of market volatility.

With Zerodha Algo Trading, users can create and backtest their trading strategies using the platform's visual interface, which makes it easier to identify profitable opportunities.

The platform charges a flat fee of ₹20 per trade, which is a significant reduction compared to other algo trading platforms.

A different take: Does Algo Trading Work

Algos are software programs that can collect data for a trading strategy, backtest the strategy to see the P&L historically, and automatically trade whenever the strategy generates a buy or sell signal.

These programs can be coded using a programming language or with platforms that allow non-programmers to build strategies with zero or little coding. A strategy can be connected to a dataset to backtest the strategy across many stocks automatically.

Algo trading involves the use of computer programs and algorithms to do trading automatically. These algorithms are developed with definite criteria in terms of timing, price, and volume.

The major benefit of algo trading is that it eliminates the emotional tendency of the trader, facilitating faster and efficient execution of a trade.

There are two ways to fetch data and place orders automatically:

Zerodha's algo trading platform, Streak, is a game-changer for traders. It simplifies the process of algo trading, allowing you to create, backtest, and deploy strategies without coding.

The platform features an interactive user interface, making it easy to navigate and use. You can discover and backtest 150+ pre-built strategies for equities and futures & options.

Streak offers a collection of 250+ pre-built scanners based on technical indicators, which can be used to identify trading opportunities. Multiple technical indicators are provided in the platform, including Bollinger bands, Supertrend, Moving averages, RSI, and Momentum Indicator.

A unique perspective: Algorithmic Trading Brokers

The platform allows you to add up to 20 scrips together in the Scrip basket to perform analysis. Real-time deployment up to 20 scrips simultaneously is also possible.

Here are some of the key features of Streak:

You can also create exit conditions (optional) for your algo using technical indicators. This adds an extra layer of flexibility to your trading strategies.

To begin algo trading with Zerodha, you'll need to create a Zerodha account if you don't already have one. You can open an account online from their website.

First, you'll need to choose your algo trading platform, which can be either Streak or Tradelab, depending on your level of coding knowledge. Streak is a good choice for beginners, while Tradelab and Amibroker are better suited for those with coding experience.

Once you've selected your platform, you'll need to link your Zerodha account to it. This typically involves providing your Zerodha credentials within the user interface of the trading platform.

Here's an interesting read: Zerodha Brokerage

Here are the basic steps to get started with Zerodha algo trading:

By following these steps, you'll be well on your way to automating your trading strategies with Zerodha algo trading.

You can access Zerodha's algo trading platform through their mobile app, Streak, which is available for both Android and iOS devices. This allows you to trade on the go, making it convenient for those who want to stay on top of their investments.

To get started, you can download the Zerodha Streak App from either the Google Play Store or the App Store. This makes it easy to access your trading account and execute trades from anywhere.

Here are the specific steps to download the app:

You can easily access Zerodha's services on the go with their mobile app. The Zerodha Streak Mobile App is available for download on Android and iOS devices.

To download the app, head over to the Google Playstore or the App Store. The app can be downloaded directly from these platforms.

The app allows for algo trading at your fingertips, making it convenient to manage your investments on the move.

Related reading: Zerodha Net Worth

These days, it's easy to get swept up in the promise of quick financial gains offered by online platforms. Algos offered by unregulated online platforms have become increasingly popular, with many platforms advertising on TV and social media.

These platforms often show cherry-picked backtested returns to lure customers in. Typically, they give a one-click option to subscribe to a strategy and connect the algo to their trading accounts with many popular brokers.

Concentration risk is a concern when too many people subscribe to the same strategy and place automated orders simultaneously. This can potentially cause volatility in the markets, especially in contracts or stocks with low liquidity.

Strategy misfiring is also a risk, as these off-the-shelf programs can face technical glitches that cause them to misfire orders and result in losses for the customer. Since these platforms are unregulated, there is no easy legal recourse.

Mis-selling risk is another issue, as backtested returns can be manipulated to lure customers in. Even if the returns are genuine, they may not consider the impact of trading costs, which can significantly alter the profit and loss.

For your interest: Stocks Trading Online

APIs are a crucial part of Zerodha's algo trading platform, allowing users to automate their trading strategies.

You can use the Zerodha API for Algo Trading to bring trading ideas into an executable algorithm, but keep in mind that you'll need to create your own technical indicators, as the Kite Connect API doesn't provide any predefined ones.

Full-fledged algo trading requires necessary exchange approvals, so make sure you're meeting those requirements before diving in.

The Zerodha WebSocket API is perfect for traders and developers who want real-time data streaming for live market data analysis and trading, with over 3,000 instruments across all exchanges.

Real-time quote updates, order updates, and market depth information are all available through this API, giving you a competitive edge in the market.

You can also use the Zerodha Historical Data API to get historical market data, which is essential for backtesting strategies in trading.

The data includes open interest, high, low, close, volume, and open interest details across multiple instruments and time frames, and costs Rs. 2,000 per month as an add-on to Kite Connect.

If this caught your attention, see: Zerodha Etf List

Automating stock accumulation is just one of the many practical scenarios where Zerodha APIs can be utilized, allowing you to write a daily program for buying a certain amount of stock within your price conditions.

The Margin Calculation API can also be used to measure the required margins for a list of orders in a single go, saving you a lot of time and effort.

Worth a look: Algorithmic Stock Trading and Equity Investing with Python

Algorithmic trading with Zerodha comes with its own set of costs.

These costs vary depending on the platform you choose to use.

You'll incur typical prices for algo trading, including those mentioned in the costs section of our article.

The prices are different depending on the platform, as mentioned.

As with most services on Zerodha, the prices for algo trading are not one-size-fits-all.

The costs section of our article outlines the specific prices you can expect to pay.

For more insights, see: What Is Algo Trading

As you consider the risks and costs of trading, it's essential to weigh the pros and cons of various platforms.

Zerodha Streak offers a range of plans with different charges, but one of the main advantages is that it's a cost-effective option for traders.

Check here the Zerodha Streak charges for various plans.

One of the biggest benefits of using Zerodha Streak is that it provides a transparent fee structure, making it easier to budget and plan your trades.

It's also worth noting that Zerodha Streak is a popular choice among traders due to its user-friendly interface and robust features.

However, it's essential to consider the potential drawbacks, such as the possibility of incurring additional charges for certain services or features.

The risk of automation is a common concern in trading, but it's not as straightforward as you might think. The risk is limited to an individual customer making uninformed trading decisions with or without automation.

Using official APIs offered by a broker or third-party automation tools to connect to a trading platform doesn't pose a systemic risk. Interactions pass through the Exchange-approved Internet-based trading platform, just like they would with standard internet trading.

HFT-like behavior is not possible with internet-based trading platforms due to high latency and broker-placed order rate limit checks. This makes automating using third-party tools or APIs infeasible for latency-sensitive strategies that need to fire a large number of orders.

A common misconception conflates algos with APIs, but they serve different purposes. APIs are universal means to do machine-readable interactions with a system, like importing portfolio data and generating analysis and reports.

Algorithmic trading with Zerodha comes with various costs, including a fixed pay of Rs. 20 for brokerage or 0.03% (whichever is lower) on every executed order for an intraday trade.

Zerodha imposes no brokerage charges on all equity delivery trades.

The platform subscription fees for Streak start at Rs. 690 per month for the basic plan, increasing with more advanced options and higher limits on deployed strategies.

Amibroker is a one-time expense, with a basic version starting at Rs. 20,000, and additional costs for data feeds and Zerodha API Integration.

Data feed services for real-time market data can cost between Rs. 1,000 to Rs. 5,000 per month, depending on the provider and type of data needed.

These costs are relatively reasonable, making algo trading accessible to traders.

Backtesting is a crucial step in algo trading that helps you measure the performance of your trading strategy before risking actual capital. It's like testing a new recipe before serving it to your guests to ensure it turns out well.

Backtesting essentially means testing a trading strategy on relevant historical data to analyze levels of profitability and risk. This gives you valuable insight into the effectiveness of your trading idea.

Streak's backtesting engine generates performance metrics for multiple stocks in a click, providing a comprehensive idea of your algo's performance. You get metrics like maximum gains, maximum loss, avg gain per winning trade, and more.

A backtest result includes a P&L curve, key performance metrics, and a downloadable transactions table. You can quickly skim through the results and get a snapshot view of up to 20 scrips at a time.

To make backtesting even more efficient, you can create custom baskets of stocks and add up to 20 scrips to each basket. Give each basket a unique name for later use, and access them from the "Create Algo" page.

Having a clear understanding of your algo's performance is essential before deploying it in the market. By running backtests, you can identify potential risks and make informed decisions about your trading strategy.

A fresh viewpoint: Trade Idea

With Streak, you can deploy an algo and let the bots track stock movements for trade signals. This means you no longer have to manually track the stock.

You can select up to 20 scrips at a time and deploy them all at once, making it a convenient option for traders.

Deploying an algorithm on Streak is a game-changer for traders, as it eliminates the need to track stocks manually.

With Streak bots, you can select up to 20 scrips at a time and deploy them all at once, saving you a significant amount of time and effort.

Streak bots track stock movements for trade signals and send actionable alerts when the strategy conditions are met.

To stay on top of these alerts, you can install the "Streak Notifications App" from the Google Playstore, which allows you to take action on notifications during market hours.

This app is designed to be a quick and easy way to respond to alerts, and it's not meant to be an end-to-end solution – a more comprehensive app is expected to be launched in July 2018.

For more insights, see: Do Trading Bots Work

Understanding your stance is crucial in market deployment. A clear stance can help you stay focused on your goals and make informed decisions.

A good stance involves setting boundaries and being selective about the opportunities you pursue. This is often referred to as "focusing on your core strengths."

Having a clear stance can also help you avoid getting caught up in distractions and maintain a sense of direction. As mentioned earlier, this is essential for achieving success in a competitive market.

Your stance should be based on your values and priorities. This means considering what's truly important to you and your business.