Broker Integration

Introduction

x3Algo integrates with major Indian brokers to execute live trades. Understanding how broker integration works, including API rate limits, symbol formats, and broker-specific features, is essential for successful automated trading.

Supported Brokers

AngelOne (Angel Broking)

API: SmartAPI Features:

• Real-time market data
• Order placement and modification
• Position tracking
• Historical data access

Rate Limits:

Order Placement: 10 requests/second
Market Data: 1 request/second
Historical Data: 3 requests/second

Strengths:

• Good API documentation
• Reliable execution
• Competitive brokerage
• Wide instrument coverage

Zerodha

API: Kite Connect Features:

• Comprehensive API
• WebSocket streaming
• Historical data
• Postback notifications

Rate Limits:

Order Placement: 10 requests/second
Market Data: 1 request/second
Historical Data: 3 requests/second

Strengths:

• Most popular API
• Excellent documentation
• Active developer community
• Robust infrastructure

Upstox

API: Upstox API v2 Features:

• REST API
• WebSocket feeds
• Historical data
• Order management

Rate Limits:

Order Placement: 10 requests/second
Market Data: 1 request/second
Historical Data: 3 requests/second

Strengths:

• Modern API design
• Good performance
• Competitive pricing
• Mobile-first approach

Dhan

API: Dhan API Features:

• Trading API
• Market data feeds
• Order tracking
• Portfolio management

Rate Limits:

Order Placement: 10 requests/second
Market Data: 1 request/second
Historical Data: 3 requests/second

Strengths:

• New-age broker
• Innovative features
• Good API support
• Competitive rates

How Broker Integration Works

Authentication Flow

1. API Credentials:

User provides:
- API Key
- API Secret
- Client ID (broker-specific)

2. Token Generation:

x3Algo → Broker API: Login request
Broker API → x3Algo: Access token
x3Algo: Stores encrypted token

3. Token Refresh:

Tokens expire daily
Automatic refresh before expiry
Re-authentication if refresh fails

Security:

• Credentials encrypted at rest
• Tokens stored securely
• HTTPS for all communication
• No credential logging

Order Execution Flow

1. Signal Generation:

Algorithm detects entry condition
Calculates position size
Prepares order parameters

2. Order Validation:

Check risk parameters
Verify margin availability
Validate order parameters
Apply rate limiting

3. Order Placement:

x3Algo → Broker API: Place order request
Broker API: Validates and places order
Broker API → x3Algo: Order confirmation

4. Order Tracking:

Monitor order status
Handle partial fills
Track execution price
Update position records

5. Position Management:

Track open positions
Monitor P&L
Apply exit conditions
Manage stop losses

Rate Limiting

Why Rate Limits Exist

Broker Protection:

• Prevent API abuse
• Ensure fair access
• Maintain system stability
• Comply with exchange rules

Consequences of Exceeding:

• API requests rejected
• Temporary account suspension
• Order placement failures
• Data feed interruptions

Rate Limit Implementation

Per-Broker Limits:

{
  "angelone": {
    "orderPlacement": {
      "limit": 10,
      "window": 1000  // 1 second
    },
    "marketData": {
      "limit": 1,
      "window": 1000
    }
  }
}

x3Algo Rate Limiter:

Tracks requests per broker
Queues excess requests
Implements exponential backoff
Retries failed requests

Best Practices:

1. Batch operations when possible
2. Cache market data
3. Avoid unnecessary API calls
4. Use WebSocket for real-time data
5. Implement request queuing

Handling Rate Limits

Automatic Handling:

Request → Rate Limiter → Queue if needed → Execute

Retry Logic:

Attempt 1: Immediate
Attempt 2: Wait 1 second
Attempt 3: Wait 2 seconds
Attempt 4: Wait 4 seconds
Max Attempts: 3-5

Error Handling:

Rate Limit Error → Queue request → Retry with backoff
Persistent Failure → Alert user → Pause algorithm

Symbol Translation

Exchange Symbol Formats

NSE Equity:

x3Algo: NSE:RELIANCE
AngelOne: RELIANCE-EQ
Zerodha: NSE:RELIANCE
Upstox: NSE_EQ|INE002A01018
Dhan: 2885 (security ID)

NSE Futures:

x3Algo: NSE:NIFTY24DEC24500CE
AngelOne: NIFTY24DEC24500CE
Zerodha: NFO:NIFTY24DEC24500CE
Format: SYMBOL[YY][MMM][STRIKE][CE/PE]

MCX Commodities:

x3Algo: MCX:CRUDEOIL25JANFUT
AngelOne: CRUDEOIL25JANFUT
Zerodha: MCX:CRUDEOIL25JANFUT
Format: SYMBOL[YY][MMM]FUT

Translation Layer

x3Algo Handles:

User Input: NSE:RELIANCE
↓
Internal Format: Standardized
↓
Broker Translation: Broker-specific format
↓
Broker API: RELIANCE-EQ (AngelOne)

Benefits:

• Consistent user experience
• Broker-agnostic configuration
• Easy broker switching
• Reduced errors

Broker Comparison

Feature Comparison

Feature	AngelOne	Zerodha	Upstox	Dhan
API Quality	Good	Excellent	Good	Good
Documentation	Good	Excellent	Good	Good
Rate Limits	Standard	Standard	Standard	Standard
WebSocket	Yes	Yes	Yes	Yes
Historical Data	Yes	Yes	Yes	Yes
Brokerage	Low	Low	Low	Low
Support	Good	Excellent	Good	Good

Brokerage Charges

Equity Intraday:

AngelOne: ₹20 or 0.25% (whichever lower)
Zerodha: ₹20 or 0.03% (whichever lower)
Upstox: ₹20 or 0.05% (whichever lower)
Dhan: ₹20 or 0.03% (whichever lower)

Equity Delivery:

AngelOne: 0.5% or ₹20 (whichever lower)
Zerodha: 0%
Upstox: 0.25%
Dhan: 0%

F&O:

AngelOne: ₹20 per order
Zerodha: ₹20 per order
Upstox: ₹20 per order
Dhan: ₹20 per order

API Reliability

Uptime:

AngelOne: 99.5%+
Zerodha: 99.9%+
Upstox: 99.5%+
Dhan: 99.5%+

Response Time:

Order Placement: <100ms (all brokers)
Market Data: <50ms (all brokers)
Historical Data: <500ms (all brokers)

Choosing a Broker

For Beginners:

Recommended: Zerodha
Reasons:
- Best documentation
- Large community
- Reliable API
- Good support

For Active Traders:

Recommended: AngelOne or Zerodha
Reasons:
- Low brokerage
- Fast execution
- Good API limits
- Reliable infrastructure

For Cost-Conscious:

Recommended: Zerodha or Dhan
Reasons:
- Zero delivery brokerage
- Low F&O charges
- No hidden fees

Connection Management

Initial Setup

1. Broker Account:

Open trading account
Enable API access
Generate API credentials
Note client ID

2. x3Algo Configuration:

Navigate to Settings → Broker Integration
Select broker
Enter API credentials
Test connection

3. Verification:

Test order placement (paper mode)
Verify market data feed
Check position tracking
Confirm P&L calculation

Connection Monitoring

Health Checks:

Periodic ping to broker API
Monitor response times
Track error rates
Alert on failures

Auto-Reconnection:

Detect disconnection
Wait for cooldown period
Attempt reconnection
Retry with exponential backoff
Alert if persistent failure

Error Handling

Common Errors:

1. Authentication Failure:

Cause: Expired token, invalid credentials
Action: Re-authenticate, refresh token
Prevention: Automatic token refresh

2. Rate Limit Exceeded:

Cause: Too many requests
Action: Queue requests, implement backoff
Prevention: Rate limiter

3. Order Rejection:

Cause: Insufficient margin, invalid parameters
Action: Log error, alert user
Prevention: Pre-validation

4. Network Timeout:

Cause: Network issues, broker downtime
Action: Retry with backoff
Prevention: Timeout configuration

Best Practices

1. Credential Security

Do:

• Store credentials encrypted
• Use environment variables
• Rotate API keys regularly
• Limit API permissions

Don't:

• Share credentials
• Commit to version control
• Log credentials
• Use in multiple places

2. Rate Limit Management

Do:

• Implement request queuing
• Use exponential backoff
• Cache market data
• Batch operations

Don't:

• Ignore rate limits
• Retry immediately
• Make unnecessary calls
• Spam API

3. Error Handling

Do:

• Log all errors
• Implement retries
• Alert on critical failures
• Graceful degradation

Don't:

• Ignore errors
• Retry indefinitely
• Crash on failure
• Hide errors from user

4. Testing

Do:

• Test in paper mode first
• Verify all order types
• Test error scenarios
• Monitor for issues

Don't:

• Test in live mode
• Skip edge cases
• Assume it works
• Deploy without testing

Troubleshooting

Connection Issues

Symptoms:

• Cannot connect to broker
• Authentication failures
• Timeout errors

Solutions:

1. Verify API credentials
2. Check broker API status
3. Test network connectivity
4. Review error logs
5. Contact broker support

Order Execution Issues

Symptoms:

• Orders not placed
• Partial fills
• Unexpected rejections

Solutions:

1. Check margin availability
2. Verify order parameters
3. Review risk limits
4. Check rate limits
5. Validate symbol format

Data Feed Issues

Symptoms:

• Stale market data
• Missing candles
• Delayed updates

Solutions:

1. Check WebSocket connection
2. Verify subscription
3. Review rate limits
4. Test data feed
5. Switch to backup source

Summary

Key Takeaways:

1. Four Brokers: AngelOne, Zerodha, Upstox, Dhan supported
2. Rate Limits: 10 orders/sec, 1 market data/sec
3. Symbol Translation: Automatic broker-specific formatting
4. Security: Encrypted credentials, secure token storage
5. Reliability: Auto-reconnection, error handling
6. Testing: Always test in paper mode first
7. Monitoring: Track connection health, error rates
8. Best Practices: Respect rate limits, handle errors gracefully
9. Broker Choice: Zerodha for beginners, AngelOne for active traders
10. Support: Comprehensive error handling and logging

Broker Integration Checklist:

• Broker account opened
• API access enabled
• Credentials configured in x3Algo
• Connection tested
• Paper trading validated
• Rate limits understood
• Error handling configured
• Monitoring enabled
• Backup plan ready

Related Documentation

• How to Setup Execution Settings - Broker configuration
• How to Debug Broker Connection - Troubleshooting guide
• Indian Market Specifics - Market regulations
• Paper to Live Trading Transition - Safe deployment