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)

Placing a regular market order

A regular market order is the simplest type of order. This order type is used for placing a single order immediately at the best available market price. The market price is equivalent to the LTP (as explained in the Last traded price of a financial instrument recipe of Chapter 3, Fetching Financial Data).

On placing a regular market order, it goes through various intermediate states before finally reaching an end state (COMPLETE or REJECTED). A regular market order immediately moves to the end state without waiting on any intermediate states. The following state machine diagram demonstrates the various states of a regular market order during its lifetime:

This recipe demonstrates placing of the following regular market orders and querying their status:

  • BUY, REGULAR, INTRADAY, MARKET order
  • SELL, REGULAR, INTRADAY, MARKET order
  • BUY, REGULAR, DELIVERY, MARKET order
  • SELL, REGULAR, DELIVERY, MARKET order

Getting ready

Make sure the broker_connection object...