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 Bracket and Cover Orders on the Exchange

This chapter introduces various types of bracket and cover orders that can be placed on exchanges via the broker APIs. The recipes include code for placing 12 types of orders and querying their statuses, canceling open orders, and exiting completed orders. These recipes will be a fundamental part of your algorithmic trading strategies. Understanding all of the types of orders and knowing which one to place for the given requirement is crucial for building a successful trading strategy.

Each order has four attributes that together define the order completely:

  • Order transaction type
  • Order type
  • Order code
  • Order variety

For placing an order, all four attributes should be known precisely. To know more about these attributes, refer to the introduction to Chapter 6, Placing Regular Orders on the Exchange.

The recipes in this chapter...