Prerequisite: If you hadn't gone through the earlier modules, I strongly recommend you go through them all. Module 2:
https://t.co/pciDOJXyVI Note:
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We are going to implement below strategy:
Rules: There should be three candles -> high of candle 1 > high of candle 2 > high of candle 3 and low of candle 1 < low of candle 2 < low of candle 3, where candle 3 is T-1 day, candle 2 is T-2 day and candle 1 is of T-3 Day, T = today.
If on today(day=T), the stock crosses yesterday high(candle 3), then send a buy signal to your telegram handle with candle 3 low as SL.
Before we get started with code, let's create a telegram bot using BotFather.
Step 1: Search BotFather in the telegram.
Step 2: type /newbot and then give the name to your bot. Refer to the second image as an example
Step 3: Save the token to access the Telegram API. Remember, don't share it with anyone. I have market white for my token. Let's call it
.
Step 4: Send a Hi to your bot.
Step 5: Search for the telegram handle "@userinfobot" and save the id field (white tick)
This id field is unique for you and will be used by the code so that the bot can send you the message to your telegram ID.
Summary: you should have these two values saved,
1. token from the bot father for your bot
2. user "id" field when you interact with the userinfobot
So, this is about the theory. Let's get started with the code.
First, we import certain python libraries. All these libraries have been used before.
Then we define the function to get stock data and name it getData(). We use the library NsePy used in Module 2. The function is self-explanatory as it fetches the last 10-day OHLC data for any stock.
In this strategy, we will scan among the list of Nifty 500 stocks.
Then we define the function telegram_bot_sendtext which takes the message and sends the message to your telegram.
There are 2 variables:
tg_api_token and tg_chat_id. I have already explained above what they are(since confidential info so hidden in the image)
Then we define the function StrategyOne, which takes OHLC data and ticker name as input and sends the message to your telegram id.
Rules: There should be three candles -> high of candle 1 > high of candle 2 > high of candle 3 and low of candle 1 < low of candle 2 < low of
+
candle 3, where candle 3 is T-1 day, candle 2 is T-2 day and candle 1 is of T-3 Day, T = today. If on today(day=T), the stock crosses yesterday high(candle 3), then send a buy signal to your telegram handle with candle 3 low as SL.
Finally, we iterate through the list of nifty 500 stocks, and in the for loop, we fetch the data for this ticker and pass it to the StrategyOne function.
When you run all the cells, you will get the message on Telegram as seen in the Image with the buy price and SL price.
Messages as seen on your telegram.
This is about writing code to write a trading strategy and using telegram to receive buy sell signals. In Module 5, we will understand how to schedule it on PC using a task scheduler, and one step ahead, we will use AWS to automate it to receive these signals daily 🙂.
