Revolutionize Your Algo Trading Strategy with this Python-Powered Bot and Zerodha API: Make Huge Profits Today!

3 min readJan 31, 2023

Making a Trading Bot with Python, Zerodha API, and TA-Lib

Trading bots are computer programs designed to automate the buying and selling of assets based on predefined rules. They can help traders make informed decisions and increase profitability. In this blog post, we’ll look at how to create a trading bot using Python, Zerodha API, and TA-Lib.

Step 1: Setting up a Zerodha Account

The first step in creating a trading bot is setting up a Zerodha account. Zerodha is an Indian stockbroker that provides an API to access its trading platform. You can set up an account by visiting the Zerodha website and following the steps to open an account.

Step 2: Installing Required Libraries

To create a trading bot, you need to install the following libraries:

Zerodha API: Provides access to Zerodha’s trading platform.
TA-Lib: A technical analysis library that calculates technical indicators such as moving averages and Bollinger Bands.
Pandas: A data analysis library that provides data structures for organizing and manipulating data.
Numpy: A library for scientific computing in Python.

Step 3: Connecting to the Zerodha API

To connect to the Zerodha API, you need to use your API key. You can find your API key on the Zerodha website. Once you have your API key, you can use the following code to connect to the Zerodha API:

import requests
import json

def get_access_token(api_key, api_secret):
    data = {
        "api_key": api_key,
        "api_secret": api_secret
    }
    response = requests.post("https://api.zerodha.com/api/oauth/token", data=data)
    response_json = json.loads(response.text)
    return response_json["access_token"]

api_key = "your_api_key"
api_secret = "your_api_secret"
access_token = get_access_token(api_key, api_secret)

Step 4: Using TA-Lib to Calculate Technical Indicators

With the Zerodha API connected, you can start using TA-Lib to calculate technical indicators. TA-Lib provides a wide range of technical indicators that can be used to analyze market data and make informed trading decisions. For example, you can use moving averages to identify trends and make trades based on those trends.

Here’s an example of how to use TA-Lib to calculate a moving average:

import talib
import numpy as np

# Get data from Zerodha API
data = # ...

# Calculate moving average
close = data["close"]
moving_average = talib.SMA(np.array(close), timeperiod=14)

Step 5: Making Trading Decisions

With the data obtained from the Zerodha API and the technical indicators calculated using TA-Lib, you can make trading decisions. For example, you can use moving averages to identify trends and make trades based on those trends. Here’s an example of how to make a trade based on moving averages:

# Check if the current price is above the moving average
if close[-1] > moving_average[-1]:
    # Place a buy order
    # ...
else:
    # Place a sell order
    #

Step 6: Automating the Bot

Finally, you can automate the trading bot by scheduling it to run at specific intervals. You can use a library like `schedule` or a scheduling service like `cron` to schedule the bot to run at regular intervals.

Note: Trading involves risk and past performance is not a guarantee of future results. Before making any trading decisions, it is important to thoroughly understand the market and consider factors like risk tolerance, investment goals, and past performance.

In conclusion, making a trading bot using Python, Zerodha API, and TA-Lib is a relatively simple process. By following the steps outlined in this blog, you can build a trading bot that can automate the buying and selling of assets based on specific rules. As always, it’s important to thoroughly research and understand the market before making any trades.

Revolutionize Your Algo Trading Strategy with this Python-Powered Bot and Zerodha API: Make Huge Profits Today!

Written by Chinmoy Bhuyan