Book Image

Python Algorithmic Trading Cookbook

By : Pushpak Dagade
Book Image

Python Algorithmic Trading Cookbook

By: Pushpak Dagade

Overview of this book

If you want to find out how you can build a solid foundation in algorithmic trading using Python, this cookbook is here to help. Starting by setting up the Python environment for trading and connectivity with brokers, you’ll then learn the important aspects of financial markets. As you progress, you’ll learn to fetch financial instruments, query and calculate various types of candles and historical data, and finally, compute and plot technical indicators. Next, you’ll learn how to place various types of orders, such as regular, bracket, and cover orders, and understand their state transitions. Later chapters will cover backtesting, paper trading, and finally real trading for the algorithmic strategies that you've created. You’ll even understand how to automate trading and find the right strategy for making effective decisions that would otherwise be impossible for human traders. By the end of this book, you’ll be able to use Python libraries to conduct key tasks in the algorithmic trading ecosystem. Note: For demonstration, we're using Zerodha, an Indian Stock Market broker. If you're not an Indian resident, you won't be able to use Zerodha and therefore will not be able to test the examples directly. However, you can take inspiration from the book and apply the concepts across your preferred stock market broker of choice.
Table of Contents (16 chapters)

Fetching the list of financial instruments

Financial instruments, also known as securities, are assets that can be traded in an exchange. In an exchange, there can be tens of thousands of financial instruments. The list of financial instruments is static in nature, as it doesn't change during the live trading hours. Financial instruments may change from time to time, but never within the same day. Having this data handy is the first step for algorithmic trading. This recipe shows how to fetch the list of financial instruments.

Getting ready

Make sure the broker_connection object is available in your Python namespace. Refer to the Technical requirements section of this chapter to set it up.

How to do it…

Fetch and display all the available financial instruments using broker_connection:

>>> instruments = broker_connection.get_all_instruments()
>>> instruments

We get the following output (your output may differ):

How it works…

This recipe fetches all...