Zerodha Email- Launch of algoZ

April 25, 2013

Traders,

This was an email sent to our clients announcing the launch ofalgoZ_logo.jpg

Dear Traders,

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.

Check out a simple example on how it works!

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.

Check out the Buy and Sell signal showing up… As soon as the signal appears, the order window appears pre-filled for you to “OK” your order.

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!

Happy Trading,

Zerodha

Your friendly neighborhood discount brokerage

25 comments

  1. deepak_batra says:

    Great stuff. however its not yet activated for me. Can you please activate for me. Thanks. Already emailed at [email protected]

    Deepak

  2. Pradeep.tv says:

    Sounds great, but once i create the script/code, I only get the option to edit it. There is no option to backtrace or live. Can you enable it if it needs to be enabled.

    Also I need code for a simple strategy as shown below –

    Basically i want to use heikin-ashi charts, so my close, open, low and
    high are specified below —

    HA-Close = (Open(0) + High(0) + Low(0) + Close(0)) / 4

    HA-Open = (HA-Open(-1) + HA-Close(-1)) / 2

    HA-High = Maximum of the High(0), HA-Open(0) or HA-Close(0)

    HA-Low = Minimum of the Low(0), HA-Open(0) or HA-Close(0)

    Buy —> If the close goes above highest close of last 4 candles then buy.

    Sell —> If the close goes below lowest close of last 4 candles then sell.

    • Nithin Kamath says:

      Pradeep,

      Had seen your query in my email, had one too many requests today on this. I am taking all these queries in the following blog: http://www.zerodha.com/z-connect/blog/view/code-your-technical-analysis-strategy

      To enable, send an email to [email protected]

      Anyways your expression would be something like this:

      Buy expression:

      SET HAC = (OPEN+HIGH+LOW+CLOSE)/4
      HAC>MAXOF(REF(HAC,1), REF(HAC,2), REF(HAC,3), REF(HAC,4))

      Buy exit: 0

      Sell expression:

      SET HAC = (OPEN+HIGH+LOW+CLOSE)/4
      HAC < MINOF(REF(HAC,1), REF(HAC,2), REF (HAC,3), REF (HAC,4))

      Sell exit: 0

    • Pradeep.tv says:

      But I am not able to backtest any script. The only option which is available is edit, there is no backtest or live option available. Version which i am using is 3.10.57.97.7.
      Omnyses version which I am using is 1.5.1.0 Build date: 15th Feb 2013.
      I think both are latest version. Then why backtest is still not enabled for me ??
      Thanks for the code, can you plz enhance it in such a way that, I use another signal along with the code mentioned that being stochastic oscillator(14,7,3) Buy – when close is above highest close of last 4 candles (heikin-ashi) and %k is closed above %d, Sell – when close is below lowest close of last 4 candles (heikin-ashi) and %k is closed below %d.

    • Nithin Kamath says:

      Will add the code pradeep, about you not being able to backtest, can you shoot an email to [email protected], guess algoz not enabled for you….

    • Pradeep.tv says:

      Ok, I just now sent an email to Zerodha India <[email protected]> and [email protected] to enable algoz for my account with subject “RS0695: enable algoz in my account” . Also in earlier query for the code combining heikin-ashi and stochastics, plz use SMA for stochastics calculation.

  3. Arakkil says:

    Sir,
    Please code this strategy.
    When 8 EMA line cross (from bottom) 34 EMA line, buy and 8 EMA line cross( from top) the 34 EMA line, sell. In both cases 8 EMA value is the SL. Time frame is 30 min.

    • Nithin Kamath says:

      Arakkil,

      We are explaining all strategy writing in this blog, click here, there are some explained on EMA crossovers also.

      A very simple strategy, find expression for your query:

      Buy Expr: EMA(Close,7)>EMA(Close,14) Sell Expr: EMA(Close,7)<EMA(Close,14)

      Buy Exit: 0 Sell exit: 0

  4. Shan says:

    I have sent a couple of emails for Activation of algoZ but it has not been still done (I trade on all the days)..Whether there is some criteria for getting algoZ activated?

  5. sirsi2004 says:

    Dear Sir,
    Recently I have opened account with you, please send me of inform me chart setup for day trading with buy and sell signal.
    Thanks,

    • Nithin Kamath says:

      Sirsi,

      For now you will have to research on your own on the various blogs on algoZ in Zconnect to figure out a good trading system. If you follow technical analysis, you can post your strategy and will let you know how to code this.

  6. dineshAI says:

    Hi,

    I have downloaded your android version for trading on my mobile. There is feature of set alert. but it didnt send any alert by sms or email.

    This feature doesnt work? if yes how to use it? if no are you planing to implement it and by when?

    Thanks and Regards,
    Dinesh Sen

    • Hanan says:

      Dinesh, the Set Alerts option works only for your email. To make this work, go to your market watch and select your scrip. You’ll get a popup window in which you can choose the option “Set Alert.” In that window, decide your alert settings and set the values you would like. Then you have to tick the check box below which says ’email.’

      Click on Set Alert. It works. 🙂

  7. vko says:

    Bit disappointed…

    I just got my account created a couple days ago. One of your sales representatives (Sushma?) helped set me up with Installation of Nest Plus etc. today. I specifically asked, having already read the blogs, that I need the Plus account registered from backend by Zerodha so all features work out-of-the-box and I don’t have to miss out on any feature. She still had me go ahead and register for Plus saying that’s how it was done for everyone. However, now looks like there is an issue with the AlgoZ. I conferred this blog on AlgoZ to backtest a strategy, but it doesn’t give me the option to backtest, only edit. I don’t know what all other features are still missing.

    Sent an email to [email protected] in the hope that AlgoZ and all other features on NestPlus that my account is entitled for will be enabled. Any idea how long that might take?

    Not trying to cause trouble for anyone, but I think people helping out new users get setup should at least make sure they are guiding them correctly. All features should work out-of-the-box.

    Thank you!

  8. SUSHILA mAHESHWARI says:

    I am having account with Zerodha. i DONT KNOW ANY THING ABOUT ALGO TRADE SETUP. cAN ZERODHA HELP IN SETTING UP GOOD aLGO TRADE AND PARAMETER FOR PROFITABLE TRADING. MY ID IS RS1714

  9. Sukesh says:

    Hello Nithin,

    Can we try to automate trades in F&O using the movements of prices of underlying?

    Example: If Nifty goes above 7650, then buy 1 lot of Aug’14 Nifty Futures?

    And similarly for options?

    Thanks

    • Complete automation is not allowed for retail, check this out if you are interested.

      • Sukesh says:

        Thanks for the reply, is it possible to at least semi automatic trading through Algoz?

        My requirement is to take trades in Index Options & Futures based on the value of the Index i.e, Nifty.

        • Yes Sukesh, you can do semi automated. algoZ is mainly for technical analysis strategies, so it doesn’t presently have the functionality to trigger orders in a separate contract while you are running strategy on another. So if you are running a strategy on Nifty futures, the triggers will be for trading Nifty futures only.

  10. Alok Das says:

    NITHINJII Namaskar,
    Please code this strategy for me:
    In 30 min heiken-ashi chart
    Buy when price is more than last candle, SL: One pip below last candle
    Sell when price moves below last candle, SL: One pip above last candle

    Thanks.

  11. kausal says:

    Good Evening Sir.
    Just know I activated the algo trading against my account no. ZZ0731.

    Please let us know that it is possible to guide with the help of Team Viewer.

    Best regards,

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