Introduction to Algorithmic Trading with Delta REST Client
Are You Ready to Automate Your Trading?
Welcome to the exciting world of algorithmic trading! If you're interested in leveraging technology to enhance your trading strategies, this blog is your starting point. We'll explore how you can use Python and the Delta REST Client to automate your trades on Delta Exchange. By the end of this read, you will be able to
- Code your own strategies and place orders on your delta exchange account through API
- Get a Python script to place a limit order at the mark price of your desired option contract and move the bid automatically as the mark price of the contract changes
- Delta Rest Client Documentation
Setting the Stage: Python and API Trading
Are You Familiar with Python? Python is a versatile programming language favoured for its simplicity and readability, making it perfect for algorithmic trading. If you're not familiar with Python, it's recommended that you start with a basic Python setup guide. Python's extensive libraries and community support make it ideal for developing trading algorithms.
Understanding API Trading
API trading connects your trading decisions to the digital market through programmable interfaces. By generating an API key on Delta Exchange, you integrate your Python scripts with your trading account, enabling automated, real-time decision-making.
Creating an API Key
If you haven’t created an API key before, you can follow the steps from this blog: https://www.delta.exchange/blog/how-to-create-an-api-key-on-delta-exchange?category=research
Getting Started with Delta REST Client
Installation: To begin, install the Delta REST Client using the following command:pip install delta-rest-client
Implementing a Simple Trading Strategy
Automating Limit Orders
Let's implement a basic strategy: We will place a limit order at the mark price of an option contract and continuously update it to match the current mark price. Here's a simple outline to get you started:
- Initialize the Delta REST Client.
- Fetch the current mark price of your chosen contract.
- Place a limit order at that price.
- Use a loop to constantly check and update the order price to the current mark price.
- Break when the order is filled.
This strategy exemplifies how you can use Python to make dynamic trading decisions, adapting to real-time market changes. You can copy the Python script from here
from delta_rest_client import DeltaRestClient
import pandas as pd
import time
delta_client = DeltaRestClient(
base_url='https://api.delta.exchange',
api_key='your_api_key',
api_secret='your_api_secret'
)
symbol = 'P-BTC-46400-110124'
ticker = delta_client.get_ticker(symbol)
mark_price = ticker['mark_price']
product_id = ticker['product_id']
print(mark_price)
qty = 1
while True:
# Place Limit Order at Mark Price
order_response = delta_client.place_order(
product_id=product_id,
size=qty,
side='buy',
limit_price=mark_price
)
print(order_response)
print('Order Placed for 0.001 BTC at Mark Price of ', mark_price,' Contract Symbol: ', symbol)
break
time.sleep(5)
# check if the order is unfilled
open_orders = delta_client.get_live_orders(product_id=product_id)
if len(open_orders) > 0:
for order in open_orders:
if order['id'] == order_response['id']:
print('Order is still open')
qty = order['unfilled_size']
# Cancel the Order and wait for loop to replace it with a new order
delta_client.cancel_order(
order_id=order_response['id'],
product_id=product_id,
)
break
else:
# Order is filled
print('Order is filled')
break
To have your questions about Algo Trading answered, you can schedule a call with us by clicking here
Frequently Asked Questions (FAQs)
Q1. What is algorithmic trading and how does it work using APIs like the Delta Exchange REST Client?
Answer: Algorithmic trading uses pre-programmed rules to fire orders automatically based on price, volume, or custom signals. The Delta Exchange REST Client gives developers endpoints to fetch live market data, place orders, and manage positions, so strategies run without any manual intervention.
Q2. How can Python be used for automated crypto trading on platforms like Delta Exchange?
Answer: Python connects to the Delta REST API through the delta-rest-client library, available on PyPI. Traders write scripts that pull market data, check entry and exit conditions, and submit orders to Delta Exchange automatically, covering anything from simple bots to multi-leg options strategies.
Q3. What is the Delta REST Client and how does it help in executing automated trading strategies?
Answer: The Delta REST Client is Delta Exchange's official Python library that wraps the platform's HTTP endpoints for order placement, position management, and market data. It handles request signing and error management, cutting out the boilerplate code developers would otherwise have to write from scratch.
Q4. How do traders create and use API keys for algorithmic trading on Delta Exchange?
Answer: API keys are generated inside your Delta Exchange account under the "Create A New API Key" section. Keys can be scoped to trading permissions only. All authenticated requests are signed using a sha256 HMAC. Restricting key permissions to the minimum needed is good security practice.
Q5. What is a limit order strategy and how can it be automated using Python in crypto trading?
Answer: A limit order places a buy or sell at a specific price rather than accepting the current market price. In Python, traders call the Delta Exchange order endpoint with order_type=limit_order and the target price and size. Loops can then adjust those prices dynamically as market conditions change.
Q6. What are the benefits of using automated trading strategies on Delta Exchange?
Answer: Automation removes emotional decision-making, keeps strategies running around the clock, and lets backtested logic execute at scale. Delta Exchange's REST and WebSocket APIs support systematic trading across BTC, ETH, and altcoin futures, perpetuals, and options, with INR settlement for India-based algo desks. The API is free to use.