International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395-0056
Volume: 11 Issue: 10 | Mar 2024
p-ISSN: 2395-0072
www.irjet.net
Algorithmic Trading with an API 1Gaurangi Raul, 2Riya Jadhav, 3Tejas Kamble, 4Kshitija Satpute 1,2, Dept. of CSE (AI&ML), Smt. Indira Gandhi College of Engineering, Navi Mumbai, Maharashtra, India
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Abstract - Algorithmic trading, uses pre-programmed
Order Management: Ability to place buy and sell orders, modify existing orders, and cancel orders electronically.
instructions to automate trade executions. This research paper investigates the development of an algorithmic trading system using the Kotak API, focusing on the Relative Strength Index (RSI) strategy.
Portfolio Management: Access to your current holdings, account balance, and transaction history.
1.2 KOTAK API
Through APIs, such as WebSocket traders can seamlessly connect their algorithms to brokerage platforms, allowing for real-time data access, order management, and trade execution with high precision and speed.
Kotak Mahindra Bank offers APIs relevant to algorithmic trading: 1.
Key Words: Kotak Neo API, Yahoo Finance, RSI algorithm 1.INTRODUCTION The financial markets have witnessed a significant shift towards automation with the rise of algorithmic trading (algo-trading). This approach leverages computer programs to execute trades based on pre-defined rules and technical indicators, offering advantages like speed, accuracy, and the ability to remove emotions from trading decisions.
Real-time market data: Get live updates on stock prices, volumes, and other market information. Order placement and management: Programmatically place buy and sell orders, modify existing orders, and cancel orders.
This research paper explores the development of an algorithmic trading system specifically designed for the Kotak Securities platform. We will focus on utilizing the Relative Strength Index (RSI) strategy, a popular momentum oscillator, to identify potential trading opportunities.
Live market feeds: Integrate real-time market data into your trading application 2.
The following sections will delve into the details of Kotak API integration, RSI indicator calculation, the design of the RSIbased trading strategy, back testing and evaluation methodologies, and a paper trading simulation for live market testing. Through this comprehensive approach, we will assess the feasibility and potential benefits of algorithmic trading using the Kotak API and the RSI strategy.
2.LITERATURE SURVEY Algorithmic trading bots and price prediction are being used a lot in the Indian stock market. These bots use special instructions to make trades faster and more accurately than humans. Price prediction helps traders decide when to buy or sell stocks by using different techniques like looking at past patterns or using computers to learn from data. Kotak Securities, a company in India, has made a tool called Kotak Neo API that helps traders use these bots and make trades easily. People have done studies to see how well these bots
1.1 API A trading API (Application Programming Interface) acts as a bridge between your trading platform and your custom-built application or software. It allows programmatic access to features like: Market Data: Real-time or historical data on stock prices, volumes, order book depth, and other market information.
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Impact Factor value: 8.315
Y Finance
Yahoo Finance is generally considered a reliable source for historical stock data. Yahoo Finance allows users to download historical price, dividend, and split data for most stocks in daily, weekly, or monthly formats. This data can be downloaded as a CSV file to be used offline. In summary, Yahoo Finance stands out as a preferred choice for casual investors and traders seeking quick access to news, quotes, and market data, making it a valuable tool for those looking for a user-friendly interface, advanced research capabilities, and portfolio tracking features
The RSI analyzes recent price movements to gauge whether a stock is overbought or oversold, providing valuable insights for buy and sell decisions. By integrating the Kotak API and implementing the RSI strategy, this research aims to develop a robust algorithmic trading system.
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Kotak Neo Trade API (offered by Kotak Securities): This API caters specifically to algorithmic trading and provides access to features like:
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