algoZ – An Introduction
Traders,
Have you always thought that algos, program-based trading, backtesting tools are privy to a select few? We at Zerodha have introduced algoZ to break this myth by offering an algo product completely free of cost and more importantly by dedicating an entire section on Z-Connect to train you on writing/backtesting/going live on a technical analysis strategy. You don’t need any programming background but at least basic technical analysis knowledge is a prerequisite.
What is algoZ?
algoZ is a complete TA (Technical Analysis) based “Algo Suite” for our retail clients.
What this means is that other than just charting, you can actually write a strategy, backtest it to see if it would have made money and once decided you can take the strategy live semi-automated. If you’d like to fully automate your trades, you’ll have to sign up for a Dealer Terminal which will have an additional option to automate the trades, do speak to our support team about this. We will also be getting help from professional programmers to explain how to convert your technical analysis strategy into a code.
Remember that algoZ is based on technical analysis. Click here to know how to invoke charts on ZT.
We will divide the section of algoZ on Z-Connect into
1. Showing you a basic example on how algoZ works, so you know how easy it is.
2. How to use an Expression Window to write your strategy? We also have an explanation on the various fields and their uses, see the pic below of the expression window to get an idea of how it looks like:
3. How to backtest a strategy to know if your strategy would have made money or not in the past and reading the details on the backtest window. See the pic below:
4. Taking your strategy live, semi/fully automated. How to preset orders for your strategy and use the various fields in the preset order/alert preference box. Explanation on how to run multiple scripts/programs at the same time and manage them. How to act on alerts when your strategy gives a buy/sell indicator.
Pic showing the preset order/alert preference window
Pic showing how multiple scripts/programs can run at the same time
Pic showing a sample alert window
5. Tutorial on Writing a Strategy: Interact with our programmers and get help to understand how your technical analysis strategy can be converted into code. It might be a little tricky to start off with, but we will be by your side assisting you as usual to learn this in the simplest possible way. We will cover basic to intermediate strategies in this section.
As usual, you can ask us questions at the end of every blog and we will be more than happy to answer any query you may have. Tutorials on writing a strategy will be a complete subsection as I’d assume this is where you would need the most help. Everything else is pretty simple. To reiterate, we will not be teaching you technical analysis, but we will be showing how you can write your strategy, backtest it to see if it would have made you profits and take it live either semi or completely automated.
How will this compare to a professional charting software?
a. You will have almost all commonly used indicators, but a professional charting software will have a lot more options. The charting interface on a professional charting software would be better.
b. The charts can be plotted against almost any time frame starting at 1 minute. You can customize your candles/bars from 1 minute to anything you want just like other charting tools. In the beta version, you will not have access to as much data as you will find in a professional charting software. You will have intraday data of upto 22 days and daily charts of more than 3 years.
c. Not only will you have features like writing a strategy & backtesting, as explained above, you will also have an option to go live which would not be available on other regular charting software.
Advantages of algoZ
1. algoZ will offer extremely low latency feeds since it is integrated into Zerodha Trader. Professional charting tools integrate external feeds to their software which may increase latency.
2. “Opportunity – spotting to execution.” Since algoZ is on ZT, whenever your strategy presents an opportunity, you will have an option to either automatically or semi-automatically execute (a buy/sell window pops up and you just have to click OK) or manually place the order. Compare this to a professional charting tool; you will keep tracking charts/alerts on a different window and whenever an opportunity arises, you will have to switch between screens to your trading platform and place your order manually, which might mean a crucial few seconds.
3. Finally, the cost. Today the cost of licensing a professional charting tool would be a one-time fee of between Rs. 5000 and Rs. 25000 and a recurring data feed cost of between Rs. 1000 and Rs. 4000 per month based on how many exchanges’ data feed you subscribe to. This could mean a big overhead on your trading capital.
At Zerodha we constantly try to offer not only the best services/products but also try our best to be as cost effective as possible to keep you in “profits.”
algoZ would be completely FREE for all our active clients on ZT (Zerodha Trader) starting April 24, 2013.
*if the above menus are not pre-enabled on your ZT, send an email to [email protected], we will have it done for you in a jiffy.
As Jesse Livermore says, “The price pattern reminds you that every movement of importance is but a repetition of similar price movements, that just as soon as you can familiarize yourself with the actions of the past, you will be able to anticipate and act correctly and profitably upon forthcoming movements.”
If you follow Technical Analysis,algoZ should improve your odds of winning significantly.
**Do note that all support for algoZ will be provided online only on Z-Connect. If you have queries on writing, backtesting, or taking strategies live, make sure you ask us on the applicable blogs.
Explain your technical analysis strategy in detail on the applicable section and we will help you write the code for your strategy at no cost for you.
Disclaimer
The formulas or codes that we help you write is our view on your query. Zerodha is not liable for the correctness of it or for any trades that you take based on it. algoZ/Nest Pulse is provided as a tool to help you trade better, make sure that you double check before taking any trade based on the signals generated.
Happy Coding,
Effective September 2016, algoZ will no longer be available. The product has reached its end of life and will no longer be supported.
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Is the backtesting restricted to a few scripts or is it global? To be more clear, if I write a strategy, say a simple strategy of return > 5% in the day, could I test this strategy on all the available scrips or just only those selected. Could I backtest on aggregate data or is it restricted to the scrips I choose?
I haven’t gone through the entire manual (sorry for being lazy :)).
Uber, You can backtest individually one scrip at a time. We are lazy in a way I guess.. 🙂
Is there a way such that I could automate the process of running the scrip one by one instead of adding the conditions manually. Say, I need to test every equity for the above condition?
Presently not possible, but we will look at offering this kind of a feature in the future.
Cheers,
Hi Nithin,
i just spoke to customer support and i got reply that full automated trading is not possible with zerodha even after having Nism Equity & Derivative VIII certificate.
can you expain everything to me clear my doubt about it
We’ve shared with you links of the Kite Connect API using which one can connect to any 3rd party or customized platform to fire generated signals to the Exchange. We don’t provide any automation softwares as such.
Can we use ninja trader for fully automated trading
If you have the tech skills, yeah you can. But we don’t offer any tool as such.
Hi,
I understand Nest Pulse provides feature to write strategy / algo trading. How is algoZ different from Nest Pulse.
Regards
Chandra
Chandra it is basically a bunch of things added to PULSE. Also PULSE is paid while this would be free.
How to write for inside candle transcript or code ?
Rihi, check this post.
Excellent initiative . Kudos to Zerodha and team. Will start experimenting right away.
Thank you . Usually I dont write this anywhere online but this is an exception please except it.
YOURS FAITHFULLY…
Thanks Shri and best of luck with your trades.
Cheers
Hai,
First of all thank you zerodha,for your efforts to drive us to make profit.
my question is ,where can I download your new version?
Sasi,
The new version of ZT should be available early next week.
Can I do this algo trading only for intraday or for positional also? Any manual for the system setup or the allowed expressions or formulas?
You can trade for both. User manuals are here
Hi Nithin
My name is Bhaskar H. K. my question is can I trade with AlgoZ for cover orders? if yes how to?
Regards
Bhaskar
No, the cover order feature from algoZ is disabled for now.
Can the system pick up buy/sell signals from an excel file(which is updated from another data source like amibroker)
Chandan, we have stopped supporting algoz. We are in the verge of launching Pi, probably the most advanced trading platform in India. Check this section, where we have discussed on features and how to request for beta.
You can see some of the examples here..
Hi, I do not see any link for user manual …
Nitin,
For individual investor/Trader is is possible to trade Fully automated?
What is the requirement for enabling the same.
Thank you
Vikas
Vikas,
An individual investor/trader on a retail terminal cannot fully automate the trades. For doing this, you would need a dealer terminal, which will require you to be an Authorized person with us and also be certified(NISM) for using the dealer terminal.
Cheers,
Hi,
What would be course/exam in NISM that a person need to take for this.
Thanks
The most basic thing is from where to access algoZ?
I mean i cant find it..
Kindly comment
Vapor,
open a plus technical chart(shift +P) for any stock, right click and you will see the option to edit/backtest strategy..
If you are not seeing this, guess you are not enabled yet, then send an email to [email protected], we will enable it for you..
Have any upgradation process are in progress? I didn’t get any live& Back test options on AlgoZ,Only Edit option have seen.Pls reply this comment at the earliest.If any problem pls write when it done….
Thanks
Anil
Yes, there was an upgrade underway. Please log off and login again to see your backtest option. If you still don’t see the backtest option after logging off and logging in again, then it will be active by end of day today. We thank you for your feedback.
Hi Zerodha,
Still i didn’t see the live & backtest options. i have several times login and logout ,and also waiting.How many time will take this options are enable in my accout?
Anil
Anil,
I guess there must be an issue with the installation, can you send an email to [email protected] with your client id.
Sir,
I cannot use algoz live and backtest options from jun 03,
pls hellp.
By vinayan
Vinay,
Will get someone to call you back on this and have this issue fixed.
Hi Zerodha,
Thank you for your Response.And also thanked for enable live and back test options in my account.
Thankfully ANIL
Sir,
me to facing same issue.last week i can use algoz(live & back test option).but now only showing edit option.plz help me
regards
Sreejith
my client id is RS1496
sir,
I cant use algoz live & back test option.i have already mailed to [email protected] got reply from u r side.but yet not activated live & back test option.plz help me
regards
Radhakrishnan
Raja asked:
Hi,
I have a query regarding algo Z for zerodha
I saw the intro on your site
http://www.zerodha.com/z-connect/blog/view/algoz-an-introduction
I wanted to know,
how many symbols can be monitored at a time with an algorithm coded in algoz?
is it possible to code a strategy that will monitor the entire futures segment?
Raja,
Once you write a strategy, you will have to run it for every individual scrip separately. You cannot have 1 strategy and run it on multiple futures at one time.
I need live nifty future data for my custom application.How much it will cost me? How can i download at run time live?
Dinesh,
To get live data you will need to go to a data vendor, we will not be able to provide on a different application.
Hi,
Can I write a algo for option strategies (Strangle , straddle, etc) that works on more than one strke price (more than one script)?
Thanks
You can write an algo only for price movements of a single chart using our algoZ interface. This chart can be of an option, future, or equity. If you’d like to try option strategies, simply go to Nest Plus < Tools < Option Strategy on ZT. This allows you to play around with option strategies by giving you the payoff table.
HI Zerodha,
Does zerodha provide. email alerts for trades also. Like if a trade is done i recieve an alert.
Does the same available on your android app and web app?
Thanks and Regards,
Dinesh Kumar Sen
Yes, you can set alerts for trades or for price movements. These alerts are usually available only by email. If you have a smartphone, the best thing to do is set alerts and you can receive them on your mobile itself. Or you can view all the orders as they get executed on your Zerodha Mobile app. To download the Zerodha Mobile app go to http://trade.zerodha.com/download
Hanan,
Can I have e-mail alert on when our strategy gives a buy/sell indicator? It would be really helpful for working people like me, we can just act based on the e-mail alert.
Thanks,
Midhun
Hmmm.. currently not possible.
I work in office so for trades i mostly rely my price alerts. But mail is some times very slow. Can you privde SMS alert?
SMS alerts are not viable due to the cost involved for sending SMS alerts in India. The best option is to go for email alerts or you can have the app Zerodha Mobile running at all times on your mobile. The app is fairly stable and can be active for the whole trading session allowing you to use your mobile for other functions, too.
when you will be getting approval of Algo for MCX? any tentative date?
Exchange hasn’t given approval yet, we have no clue on this.
Hi,
Is it possible to have Metatrader(MT4) generated signals get executed in Nest terminal with the hellp of Nest trade plugin? (Like Amibroker to Nest).
Plus trading plugin, https://plus.omnesysindia.com/NestPlus/Plus/PlusPage.jsp?prd=plus_api , can be used for this, but it will have to be done from your side and we won’t be able to support you in putting this up.
SIR AN NISM CERTIFICATE IS NEEDED FOR FULLY AUTOMATIC ALGO Z OR DEALER TERMINAL BUT WHICH SERIES OF NISM CERTIFICATED OR ANYTHING ELSE WILL BE REQUIRED ? NEED IN A LITTLE DETAIL SIR.
Series 8 certification, the link is here: http://www.nism.ac.in/index.php?option=com_content&view=article&id=375&Itemid=299
How do I invoke algoZ?
Guess it is not enabled for you yet. We will enable it for you, check this blog
Cheers,
Will the Algo script running, consider the carry over positions? Suppose I carried a long position from previous trading day, then will the script genate exit signal for that carried over long position?
The algoZ script will treat each trade day individually without considering the previous day’s positions. However, this will not affect your strategy in any way.
If you had taken a position the previous day in NRML, then any new signal generated the next day will square off your existing position as long as the quantity is the same for yesterday and today.
HI,
I deal in NSE FO segments mostly and want to have an algo based terminal. I have below queries.
1. About NISM certification : there are many types of NISM certification course which one i need to take.
2. Once i have algo based trading terminal, will my existing trading interfaces ( mobile, web based and NEST ) will work or they will be obsolete.
3. Will you provide a new software altogether then do it have a android mobile based counterpart?
Thanks and Regards,
Dinesh Kumar Sen
Hi! Our answers to your questions are:
1. You need to take the NISM certification for FO, the link is here.
2. Everything will work as it was working – with the added ability to fully automate your trades. 🙂
3. Like we said, you’ll continue to trade on the existing software. No, Android still doesn’t have a platform on which we can completely automate our trades.
We have it on the drawing board and it will get developed within the next few months.
1. But the current softwares ( specially your web and android trading app) do not have automate options. So Is this the NEST Application which will provide me the options to automate ( like an option of trailing stop loss).
2. If i feed one strategy, say simple trailing stop loss, Then can i close the application. Stop loss will automatically keep on shifting even when the app is closed?
3. Who can provide me what to prepare for NISM exam.
4. Also please consider to provide the demo or small training for algo based plateform i3 module.
1) Yes, the Zerodha Trader Software allows for automating trades.
2) Yes, SL keeps on getting adjusted even if you’ve logged off.
3) You can look up for this information under the Education tab of the NSE website.
4) We can send you the demo video that we have for it.
i wants to buy 15 shares at 10 am, suppose total buying value is 100000, can i sell automatically all the shares by using this technique , when the total share value reaches at 101000
Yes, you can do this both ways:
1. You can place a target order in your regular buy/sell order window by keying in the price and the quantity you would like to sell.
2. You can also have target orders placed through algoZ.
buy reliance: 0.1 % above market price
can i place an order like this at pre-open time (9am – 9.07am) by using algoZ or any other methods
Yes, you can. There’s no need for you to code this strategy on algoZ. You can simply place a SL-M or SL order to execute above a certain predefined price. 🙂
Hi,
Can you help me to get this strategy
I’ve the following Indicator
EMA(CLOSE,14)
SMA(CLOSE,40)
SELL
1. Angle of EMA(CLOSE,14) is less than 0 ‘
2. EMA(CLOSE,14) crosses SMA(CLOSE,40) from up
EXIT
Angle of EMA(close,14) gets near 0’
And vice versa for Buy Call
How to write algo code with the following condition
EMA
——–
CMP CLOSE > 4 EMA.AND 4EMA > 9EMA AND 9EMA >18 EMA SHOW BUY SIGNAL
CMP CLOSE < 4 EMA.AND 4EMA < 9EMA AND 9EMA <18 EMA SHOW SELL SIGNAL
ANY INTER MINGLING BETWEEN THE EMA LINE BOOK PROFIT
RSI 14
——–
RSI 80 SELL SIGNAL
BOLLINGER BAND —–20
————————————
CROSS ABOVE 20 DAY AVERAGE BUY SIGNAL
CROSS BELOW 20 DAY AVERAGE SELL SIGNAL
IF TOUCH UPPER BAND EXIT LONG
IF TOUCH LOWER BAND EXIT SHORT
MACD
———-
SHORT DURATION -12, LONG DURATION -26 , SIGNAL PERIOD – 9 ( SLOWER LINE)
IF FASTER LINE > SLOWER LINE .AND. BELOW THE 0 LINE BUY SIGNAL
IF FASTER LINE < SLOWER LINE AND ABOVE ZEROLINE SELL SIGNAL
Did you code this? How did you code it?
How to put the ‘trailing stopless’? For example I bought at Rs 100 and I want my stopless to shift higher automatically if the price moves up. Say trailing stopless = low – (high+low)/2
How to put the ‘trailing stopless’? For example I bought at Rs 100 and I want my stopless to shift higher automatically if the price moves up. Say trailing stopless = low – (high+low)/2
Trailing SL can’t be put the way you have asked presently. Check this blog which shows an example of how to take a strategy live and setting SL.
Hi Nithin,
How many years of bactesting can be done on your software for a single scrip say Banknifty?
Anantha, backtesting on algoZ can be done for 22 trading days with 1-minute data. You can also backtest on historical data for about a year or so, depending on the kind of scrip. However, we wouldn’t recommend backtesting on algoZ for historical data just now. It’s great for intraday data.
Hanan,
1 year of backtesting wouldn’t be sufficient as the sample size wouldn’t be large enough to make any statistical inference. I believe in developing black box trading systems to trade for myself and my system has been tested for 3 years(on Banknifty current month contract). I was looking for data before 2011 and wasn’t able to find it anywhere. If you can help me with it. I’d be grateful.
Zerodha,
I would like to have something like this. Can I do it. At present for Icici bank PE1000 bid rate 2 ask rate 2.
I would place buy order at 2. If this order gets executed then buy 1020 PE at market rate.
These are conditional orders on 2 different contracts, this will not be possible.
This will be possible with fully automated dealer terminal, right? How can I learn about that more i.e. to get dealer terminal access of course after fulfilling the requirements. I am RK1215.
Is it possible to use algoz option on zerodha mobile app?
No,it is possible only the desktop application for now.
When will it come on Mobile?
On mobile not possible.
How open is the software (to the data center or support staff), will my strategies be visible to others or it is secured for the user. I wouldn’t want to lose my advantage if I am able to come up with a really good formula. Have you people thought about IPR (w.r.t formulas devised by individual investors) while designing this software.
Govind,
No one has access to your strategies that you write and test on this, it stays within your computer.
Cheers,
I have a few questions.
1. How does this handle costs(brokerage, taxes, slippages)?
2. How does the futures testing work? I mean how does it calculate the point value of a contract?
3. Is there any way to extract more price volume data from Nest either for use in Nest or for APIs?
Nachiket
1. There is no way to include costs into backtesting bit of the strategy.
2. All entries and exits are given at the close of a candle/bar.
3. We are working on launching our new platform, where we will have intraday data for more than 1 year, until then you can only backtest upto the amount of data available on the chart. EOD is available for more than 10 years, intraday data is available only for 22 days.
Cheers,
One year of data! That’s great! Can’t wait.
Hi please help me to code for this strategy
Buy : (EMA 8 crossover on EMA 20 ) and (raising ADX above 21 ) and ( both macd and macd signal crossing above zero reference) and (macd is 2 times difference of macd signal )
Buy Exit: mod of (macd and macd signal difference ) is less than or equal to 1
Kiran,
Buy:
(Ema(Close, 8) > Ema(Close, 20)) and (Adx(14) > 21) and (Trend(Adx(14)) = up) and (MACD(13, 26, 9, SIMPLE) > 0) and (MACDSignal(13, 26, 9, SIMPLE) > 0) and ((MACD(13, 26, 9, SIMPLE) * 2) > MACDSignal(13, 26, 9, SIMPLE))
Buy exit:
MACD(13, 26, 9, SIMPLE) – (MACDSignal(13, 26, 9, SIMPLE) =< 1
I would like to find SMA(5) is decreasing or increasing ?
Any update on this ?
Ravi, increasing or decreasing in relation to the stock price? If the idea is to buy above SMA and sell below SMA, Buy: Close>SMA(Close,5) and Sell: Close
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