Backtesting Strategies on Zerodha

Zerodha for automated trading

India's largest discount broker. Kite Connect is the most mature retail trading API in India and is widely supported by automated platforms. On the backtesting guide side specifically, Zerodha's Kite Connect exposes the endpoints retail Indian traders actually need: order placement, positions, margins, and historical candles. Zerodha has 1.5 crore+ active clients, which means the API has been stress-tested across a wide variety of strategies. API cost: ₹2,000/mo.

Backtesting on Zerodha relies on historical candles from the API plus your own assumptions about slippage, brokerage, and STT. The most common mistake is to assume your live fills will match your backtest fills exactly — they will not. Apply a slippage haircut of 5-10 bps for liquid NIFTY 50 names and 20-40 bps for less liquid F&O strikes.

Pros of using Zerodha for automation: Largest user base, Mature Kite Connect API, Excellent documentation, Reliable order routing. Tradeoffs: ₹2,000/mo API fee, Strict order rate limits during high volatility. Sleeping Trade supports Zerodha alongside four other Indian brokers — your funds stay in your Zerodha account, and we connect via trade-only API keys that cannot withdraw money. You can revoke our access from your broker dashboard at any time.

Indian retail traders moving from manual to automated execution typically see the biggest gains not from a smarter strategy, but from better execution discipline — the same trade plan, executed mechanically every session, with stop losses honored without hesitation. That is what API-based automation delivers, and the broker you choose is just the rails the strategy runs on. Three things matter when picking a broker for algo trading: API stability under load, margin treatment for hedged positions, and brokerage costs at scale. All five major Indian brokers — Zerodha, Upstox, Angel One, HDFC Securities, and ICICI Direct — clear the bar; the rest is operational fit. Sleeping Trade is broker-agnostic, so you can switch later without re-learning the platform.