I am developing a personal-use algorithmic trading application that will run locally on my own computer and connect to my own Zerodha account using my own Kite Connect developer application and API credentials.
The application is intended solely for my personal trading and strategy testing. I will not redistribute market data or offer the application as a public service.
Before proceeding with implementation, I would appreciate clarification on the following points to ensure full compliance with Zerodha's Kite Connect API terms and applicable usage restrictions.
Local storage of historical market data I understand that Kite Connect provides historical candle data for backtesting trading strategies.
For repeated personal backtesting, I would prefer to download historical candles once and store them locally, rather than repeatedly fetching the same data through the API.
- Am I permitted to store historical candle data obtained through Kite Connect locally on my personal computer, exclusively for my own backtesting? - If local storage is permitted, are there any restrictions on the duration of storage, the amount of data retained, or the instruments and historical periods covered? - If permanent local storage is prohibited, is temporary storage or caching permitted? Alternatively, must I fetch the historical data again every time I run a backtest?
Paper trading using live market data I understand that Zerodha's API terms restrict the use of Kite Connect APIs and/or live market data for virtual or mock trading applications.
My intended use case is to run a trading strategy against live market prices, generate hypothetical buy and sell orders, and calculate simulated positions and profit or loss without placing any actual orders with Zerodha or the exchange.
- Could you please confirm whether this form of personal paper trading using live Kite Connect market data is prohibited? - Is there any approved exception or permitted approach for testing a strategy against live market prices without executing real orders?
Storage of backtesting results Regardless of whether raw historical candles can be retained, may I store the results of personal backtests locally, including simulated trade timestamps, entry and exit prices, signals, strategy parameters, and calculated profit or loss? These records would be used only to review and compare my own strategy tests and would not contain redistributed market-data feeds.
Personal-use application and future live execution The application will initially be used for historical backtesting. If I subsequently enable automated order placement for my own account, I will follow the applicable Kite Connect, exchange and regulatory requirements.
Please clarify whether any additional approvals, restrictions or requirements apply to this intended personal-use setup.
I would appreciate a written response addressing these specific scenarios so that I can design the application accordingly and avoid violating any terms or usage restrictions.
