Zerodha Expert Advisors

More on Zerodha

The idea behind this write up is to go through some very famous Zerodha Expert Advisors.

India’s top discount broker, Zerodha has garnered enormous fame in its 10-year long tenure. The company thrives due to its customer-centric business model and innovative trading platforms. 

Zerodha Pi is an electronic trading platform that allows the coding and backtesting of strategies. It also offers the place for order exchange and is instilled with unique features. 

Through the Pi platform, Zerodha has introduced the “Expert Advisors” feature Expert Advisors or EAs are computerized programs that spot the most probable trade opportunities.

These EAs are written through trade scripts (programming language). This is highly favorable for traders who don’t know programming and coding. 

Using the “expert advisors” feature you can backtest your trading system on previous data and find the most efficient setup. 

Zerodha Expert Advisors Supertrend

An intraday trader is very likely to use technical analyses for detecting trades. A “Supertrend” is best suited for such traders as it indicates buy/sell signals in a trending market.

As the name literally suggests, super trend (super+trend) is a trend-following indicator. It is marked at particular prices and that placement indicates the current market trend.

Trade period and multiplier are the two parameters on which Supertrend works. The trading period’s default value is 10 and that of the multiplier is 3 while constructing a super indicator.

Not only is “Supertrend” easy to use but it also gives an accurate reading of the ongoing market trend.

Using a super trend indicator for backtesting (on Zerodha Pi)

Shortly after the release of Zerodha Pi in 2016, the “Supertrend Indicator” was launched as a charting tool on Pi charts.

However, backtesting on Zerodha Pi works on a programming language – trade script. Therefore, most of the technical functions of the indicator are already defined in the trade script’s source code. 

In simple words, the super trend indicator is not included as a function in the trade script’s original source code.

This technical limitation does not allow the usage of a super trend indicator as a function for backtesting or scanning on Zerodha Pi.


Zerodha Pi Expert Advisors

Zerodha Pi’s  Expert Advisor (EA) is an alert generating tool and is bundled with the Pi’s trading terminal.

The EA tool generates audio and visual alerts. This happens if and when the EA applied stock matches the trade script conditions used.

A list of trade scripts is pre-programmed into the Zerodha Pi’s EA tool. This makes it very useful for budding traders.

Here’s how to use the Zerodha Expert Advisors on your charts :

  • Go to the Pi Trading terminal and open the desired intraday chart
  • On the Pi toolbar select, artificial intelligence and then click on apply expert advisors
  • A pop-up window will appear. Select the type of trade script condition and click on apply
  • This activates the EA on your chart.
  • A sound alert will be generated when the pre-set conditions match.

Note that the Zerodha’s Expert Advisors (on intraday timeframe charts) only works during the trading hours. Also, the entry and exit signals can be applied to a single EA script.

Besides, avoid opening too many charts at a time with EA’s. This may generate a heavy load on the CPU and may cut down the internet speed as well. Consider using the Pi scanner if you want to use EA’s on multiple charts.


Zerodha Pi Expert Advisor Codes 

In what follows, mentioned are some of the most popular Zerodha expert advisors (for Zerodha Pi). 

3-15 EMA (exponential moving average) Crossover

This trend following strategy generates trades on the crossover between the fast-moving and the slow-moving average. Not only is this strategy easy but it also generates some very profitable trades. 

This works with a 3-15 formula. Therefore, when the 3-period EMA crosses the 15-period EMA, a buy signal is generated.

 Similarly, when the 15-period EMA crosses the 3-period EMA, a sale is generated. Here’s the code for the same.

//Buy Script

CROSSOVER(EMA(CLOSE,3),EMA(CLOSE,15))

//Sell Script

CROSSOVER(EMA(CLOSE,15),EMA(CLOSE,3))

MACD Momentum System

This strategy is a combination of MACD and EMA. It helps in finding a prevailing stock trend. Since it clubs the MACD & EMA module, a buy signal is generated only when both these module confirms the uptrend. Refer below for the code.

//Buy Script

TREND(EMA(CLOSE, 20), 15) = UP AND

TREND(MACD(13, 26, 9, SIMPLE), 5) = UP

//Sell Script

TREND(EMA(CLOSE, 20), 15) = DOWN AND

TREND(MACD(13, 26, 9, SIMPLE), 5) = DOWN

RSI & ADX Trading strategy

As the name suggests, this strategy is a mixture of RSI & ADX. As per this strategy, a Buy signal is generated when RSI crosses the upper limit. While a Sell signal is generated when RSI crosses the lower limit. 

The ADX is used to identify a trend while taking buy or sell decisions. Moreover, this strategy is highly profitable for Nifty futures (in the 1-minute timeframe). 

//Buy Script

RSI(CLOSE, 17) >= 75 AND

ADX(14) > 25

//Sell Script

RSI(CLOSE, 17) <= 25 AND

ADX(14) > 25

MACD & RSI Trading system

Under this strategy, a Buy signal is generated when the MACD signal crosses over MACD provided the RSI is more than 30. 

Whereas a Sell signal is generated when MACD crosses over MACD Signal provided the RSI is less than 70.

//Buy Script

SET A = MACDSignal(12, 26, 10, SIMPLE)

SET B = MACD(13, 26, 9, SIMPLE)

CROSSOVER(A, B) = TRUE AND RSI(CLOSE, 14) > 30  

//Sell Script

SET A = MACDSignal(13, 26, 9, SIMPLE)

SET B = MACD(12, 26, 10, SIMPLE)

CROSSOVER(A, B) = TRUE AND RSI(CLOSE, 14) < 70

Ichimoku Cloud Trading Strategy

This strategy identifies the trading signals by calculating a set of averages and comparing them with the current market price. 

It may seem a little complex as it involves multiple averages. All calculations made by this Zerodha expert advisors are as per the Ichimoku Cloud which is further translated into buying or selling signals.

//Buy Script

SET C = (SMA(HIGH,9)+SMA(LOW,9))/2

SET D = (SMA(HIGH,26)+SMA(LOW,26))/2

SET A = (C+D)/2

SET B = (SMA(HIGH,52)+SMA(LOW,52))/2

CROSSOVER(A,B)    

//Sell Script

SET C = (SMA(HIGH,9)+SMA(LOW,9))/2

SET D = (SMA(HIGH,26)+SMA(LOW,26))/2

SET A = (C+D)/2

SET B = (SMA(HIGH,52)+SMA(LOW,52))/2

CROSSOVER(B,A)


Bottom Line

All the above-mentioned EAs will spot buy and sell occasions and will alert you on the same. With this unique feature, Zerodha has yet again backed another “first” to its list.

It is India’s first broker to introduce such a concept in the Indian trading platform.

Zerodha also offers the provision of using more than one EA at a time. These strategies will not only save time but also enhance your trading experience.


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