First, you need to link Python with the trading software, and first determine whether the trading software provides API support. Generally speaking, both the software and the platform provide API. We can interact with trading software through API.
For example, Interactive Brokers (IB) provides the IB API, and MetaTrader 4 (MT4) and MetaTrader 5 (MT5) provide APIs written in the MQL4 and MQL5 languages.
Here’s an example: We will use Interactive Brokers (IB) as the trading software,
1. Connect to Python through IB’s API (ib_insync library).
1. Install the ib_insync library:
pip install ib_insync
2. Download and install IB’s TWS (Trader Workstation) software:
Please visit https://www.interactivebrokers.com/ to download and install the TWS software. You need to create an API port in TWS to enable Python to connect. Please refer to the official documentation to set the API port: https://interactivebrokers.github.io/tws-api/initial_setup.html
3. Create a Python file
For example: ib_trading_example.py
4. Write the following code in the file:
The above code example connects Python with IB TWS software and sets up a simple trading strategy, including opening, closing and stop-loss prices. Specific trading strategies and logic need to be modified based on your needs and analysis. Additionally, more features can be added, such as handling multiple stocks, using technical analysis indicators, and more.
In this example, we will use the TA-Lib library to calculate a simple moving average (SMA) for a stock and use the crossover of the moving average as a buy or sell signal. At the same time, we will be dealing with multiple stocks.
2. Handle multiple stocks, use technical analysis indicators, etc.
1. TA-Lib library:
2. Update the code to handle multiple stocks and use simple moving averages as trading signals:
This example is only used to demonstrate how to interact with the API of Interactive Brokers TWS software and does not contain specific trading strategies. In actual applications, you need to modify the code according to your own needs and strategies. Please make sure to conduct sufficient testing before live trading.