Masterclass to automate your algo in 15 mins with 100 lines of code

By: Sumit Raj

About Me:

• Techie | Author | Trainer | Mentor | Fintech Enthusiast
• 10+ years of experience in software industry
• Authored internationally published book "Building Chatbots with Python", published in English, Portuguese, Korean & Chinese.
• Helped 100s of student build their Algo trading systems
• Guest speaker and hackathon lover.
• Learning to trade.

Problem

• Not being able to take quick action
• Emotions play
• Strategies needs more time
• Seamless execution
• Cost and Productivity

Challenge

• I know the strategy
• I have manually backtested it or got it backtested.
• I can write the pseudo code, may be using Chartink or TradingView using an interface
• But I don't know how to automate or I can't sit all day in front of the system

Serverless Solution

What is serverless?

• Serverless architectures doesn't mean there are no servers.
• 3rd-party "Backend as a Service" (BaaS) services or "Functions as a Service" (FaaS) platform
• Removes the need for a traditional always-on server like EC2 or VMs.
• No out of memory error unless you already know how much you needed.

Step 1

• Create a Lambda Function for calculation part with our Python code

Code: https://github.com/sumit12dec/algotradingsmartlearn

Step 2

• Automate Jainam Login API
• Webhook endpoint for receiving Chartink alerts

1. Create Lambda to auto login

2. /webhook => Receiving Alerts from Chartink

Step 3

• Mock alerts from Chartink
• Alerts are sent to our Lambda and converted into orders

What if I do not want to place order but just want alerts?

Just couple of more lines of code with the same setup.

def send_message_bot(chat_id, text):
    url = 'https://api.telegram.org/bot1377736798:<TOKEN>/sendMessage'
    r = requests.post(url, {'chat_id': chat_id, 'text': text}).json()

Cost Perspective

• 1M free requests per month and 400,000 GB-seconds of compute time per month for AWS Lambda

Average trading days: 21 * 6 hour/day = 126 hours
Average runtime: 800 ms ~1sec
126 hours= 126*3600 = 4,53,600 seconds

(126*3600*128)/1024 = 56,700 GB-seconds

56,700 GB-s - 400000 free tier GB-s = -343,300.00 GB-s

Lambda costs - With Free Tier (monthly): 0.00 USD

Let's do the maths

• Amazon API Gateway free tier includes one million API calls per month for up to 12 months.

• 5GB Data (ingestion, archive storage, and data scanned by Logs Insights queries)
• $1.00 per million events

Productivity and Maintenance

Perspective

• Setup cronjob with click of a button
• Logging is a piece of cake
• Search logs for history of your executions
• Stopping execution using Throttle
• Setup once and use forever

Why choose Serverless Lambda over EC2?

• Highly reduced operational cost
• Less complex to manage compared to VMs
• Faster development time and productivity
• Near zero maintenance

Questions?

Thank you.

Website: https://sumitraj.in

Twitter: @sumit12dec

Phone: +91 959 028 3524

Email: sumit786raj@gmail.com