Few clients ask me how to start automated trading in Zerodha Pi platform. For them, I have prepared this post where you can get an in-depth idea of how you can start auto trading or Algo trading in the Zerodha Pi platform. Before trading in the Pi platform you must know how to download, install and login to the terminal.
Case 1: Automated Trading in Zerodha Pi – Directly writing expert advisor code on Pi platform
- This is a much simpler process and can be practiced by even newcomers.
- There is a list of ready to use expert advisors that are already available to use. Open the Zerodha expert advisors page by clicking here.
- Run your Zerodha Pi. Open your favorite chart and attach expert advisors (EA) there.
- Create new expert advisor by clicking Artificial Intelligence –> Create new expert advisor.
- You can also attach or edit a ready-made EA to your chart.
- You can backtest your expert advisor or take it into live trading also.
- Or, you can also use ready-made expert advisors from Zerodha Expert Advisors page.
- There can be some charges for semi-automated and fully automated trading.
- For detailed information on the charges and expert advisor, you can write an mail to [email protected] OR post your queries to the Trading QNA site.
First Step – Attach an Expert Advisor to Chart
So if you decided to auto trade on Pi platform by directly writing code to the platform, the first step is you need to attach an expert advisor to a chart and generate alerts on the basis of the same. You can attach an expert advisor to a chart by opening a chart and then clicking Artificial Intelligence -> Apply Expert Advisors. In this process, you can also edit any EA as per the image has shown above. The EAs will now generate automated alerts as shown below.
Executing the Trades
You can simply click on the buy or sell buttons and the trades will get executed in the exchange. Check the image below where we are clicking a SELL button to execute a sell order generated by our EA.
And once the SELL button is clicked the short sell order window gets opened. If you click submit the order will be sent to then exchange and will ultimately get executed as per opportunity.
By default, retail traders can do only this kind of semi-automated trading. This process is very simple and you need not take any exchange permission also to execute semi-automated trades. This semi-automation eliminates your emotion and helps you to trade using formula based trading logics without using complex technology.
However, if you want fully automated trading need to provide NCFM / NISM certificate to Zerodha and approve your strategy from the exchange. Remember, approving your strategy may take at least one month.
Case 2: Automated Trading in Zerodha Pi – Using Pi Bridge
Using Zerodha Pi Bridge, Zerodha Pi can be connected to your favourite charting language like Amibroker, Ninja Trader OR even you can write your trading logic in your favourite programming languages like C#, Python or Perl and fire your trades directly into Zerodha Pi. You can also utilize or code two-way updates to and from Zerodha Pi. One way you can fire orders and on the other way, you can get order updates, modify or delete orders or get your position updates.
Like the previous process, here also you can trade using generated alerts from platforms like AmiBroker, Metastock, etc. The alerts will be available the same under the alerts menu in Pi. You can trade semi-automated using the same process. For fully automated trading in Zerodha Pi once again you need to have a dealer’s terminal by submitting your NCFM / NISM certificates to Zerodha. Here also, you need to approve your strategy from the exchange.
Previously for accessing Pi Bridge you needed to login to your back office Q and activate it from the Pi section of Q. This process has now changed. Now you need to login to support.zerodha.com and raise a support ticket there to enable Pi bridge.
Remember there can be some charges for using Zerodha Pi Bridge. For detailed information on the charges of Pi Bridge, you can also write an mail to [email protected]. You may also post your queries to the Trading QNA site.
However, trading with Pi Bridge is not for newcomers as it requires some programming knowledge. You need to know writing codes on AmiBroker or other charting platforms and also to connect these platforms with Zerodha terminal using API functions.
So we have seen that using these techniques one can start automated trading in Zerodha platforms. This technique will help you in eliminating your emotions from trading. You can now follow the same trading technique what the FIIS and DIIS and big hedge funds using. I will love to answer your queries on auto trading in Pi.