We are constantly trying to offer products that improve your odds of winning in the markets.
The first one on offer for this financial year was the Zerodha 60-Day Challenge. We are following it up with the launch of algoZ, which is our attempt to get India to trade the way the developed world trades, using programs/scripts that are backtested. Additionally, you can also manage your trading capital better by having a preset order quantity and stop loss on multiple such scripts.
“algoZ – your window to algorithms” has been enabled on Zerodha Trader from April 25, 2013. The retail trading community in India is still probably 10 years behind developed markets in terms of program-based trading and we at Zerodha want to be the catalyst to change the way India trades – professionally and efficiently.
With algoZ, you can convert your technical analysis strategy from just an idea into a script/code. Once a code, it can be back-tested to see if it had been profitable in the past and take it live if only so. When you take the strategy live, whenever a buy/sell signal is initiated you get a prompt to take action and you could do so based on a predefined quantity and stop loss percentage.
The odds of you winning go up considerably because firstly, you are betting on strategies which have been profitable in the past. And when you decide to go live, algoZ will ensure that you don’t miss a trade by prompting to take an action whenever your strategy gives a buy/sell signal with a preset quantity and stop loss percentage. You can run multiple such programs or strategies at the same time to manage your money better and trade without emotions, a key to be successful when trading the markets.
We have released a beta version right now and it will work on NSE/BSE/MCX-SX Equities, Derivatives and Currencies. Commodities should be available in the next version. In the beta version, you will be able to backtest intraday data for up to 22 days and end-of-day charts can be backtested for over a year or so. In the alpha version, which will tentatively be launched around the first quarter of next year, you should be able to run scripts on MCX and also backtest on intraday data for up to 10 months and view daily charts from inception.
What is critical about program-based trading is knowing how to “write a script/code.” How do you convert your technical analysis strategy from an idea into a code? The only way you can learn today is by asking people who already write strategies, or by searching online or simply reading a book. Since there are not many people in India who actually write strategies, the first option is ruled out and the internet/books typically make it very complex for a beginner to learn.
This is where Zerodha has added value by running a section on Z-Connect called “Code your Strategy” which will be a tutorial on writing strategies. You can let us know your technical analysis strategy and we will code it for you and also explain how it’s done. As and when you see a few examples, you will be able to start writing strategies on your own with us by your side always. Do understand that to write a strategy the logic has to be yours, so an understanding of technical analysis would be a prerequisite. Keeping in line with the concept of algoZ , we would provide only online support for it. This means that whatever your question is, it has to be asked only on Z-Connect and you’ll find your answer there by one of the experts.
Both algoZ and the training material will be available completely free of cost for our active clients. By “Active clients” we mean people who are trading at least 5 times a month with us. For people who already have a basic idea of coding on a professional charting software, you can read the user manual here and see the advantage you get by having the option to go live on the trading platform itself which will reduce the impact cost, lower latency of feeds and ensure that you are able to take every trade initiated by your strategy. This is key for successfully running a TA strategy and it can’t be done on professional charting software.
If you think your friends might be interested in a product like this go ahead and refer them under our associate program by clicking here.
Time to write, backtest, and go live on trading the smarter way!