Welcome to Streak.tech, an extension to Kite – Zerodha’s exchange approved trading platform. Streak.tech is provided by Streak AI Technologies Pvt. Ltd, a web-based platform to create, backtest and deploy trading strategies.
Create is a process to input entry and exit conditions involving technical indicators, stop loss percentage, take profit percentage, instrument, quantity of stocks etc and form a trading strategy, hereafter referred to as “trading strategy” or “strategy” or “strategies”.
Backtesting is the process of testing a trading strategy on relevant historical data to ensure its viability before the trader risks any actual capital. A trader can simulate the trading of a strategy over an appropriate period of time and analyze the results for the levels of profitability and risk. Streak AI Technologies Pvt. Ltd. (Streak.tech) strives to give you accurate information on your trading strategies and your strategies, however methodology covers the PROCESS AND ASSUMPTIONS THAT ARE MADE DURING CALCULATING THE RESULTS OF THE STRATEGY(STRATEGY) DURING BACKTEST AND THE DATA SHOWN AFTER DEPLOYMENT.
In addition to the services that allow you to create and backtest a trading strategy (strategies), Streak.tech is an extension to Kite – Zerodha’s exchange approved trading platform that allows you to engage in live trading through deployment feature in the platform.
Using Streak AI Technologies Pvt. Ltd. (Streak.tech)’s Services, including its deploy services, presents several different types of risk. We have summarized these below. You should read and understand these risks before you use any of Streak AI Technologies Pvt. Ltd. (Streak.tech)’s services.
The risks that can arise from using Streak AI Technologies Pvt. Ltd. (Streak.tech)’s Site and Services fall into three broad categories:
1. Risks inherent generally in using Internet-based technology;
2. Risks inherent in creating, backtesting, and deploying trading strategies; and
3. Risks inherent in engaging in live strategyrithmic trading.
ANY PERMUTATION OR COMBINATION OF THE OCCURRENCE OF THE POTENTIAL EVENTS THAT DEFINE THE RISKS DESCRIBED IN THIS DISCLOSURE STATEMENTS CAN LEAD TO A TOTAL OR PARTIAL LOSS OF OPERABILITY, RESPONSIVENESS, FUNCTIONALITY, AND FEATURES THAT COULD MATERIALLY AND ADVERSELY AFFECT YOUR USE OF WWW.STREAK.TECH OR STREAK.ZERODHA.COM.
Risks of Using Internet-based Technology – Generally
The Internet-related technological risks arising from using Streak AI Technologies Pvt. Ltd. (Streak.tech)’s Site and Services to write, test, analyze, and run trading strategies and related trading strategies fall into three categories: (a) risks related to Streak AI Technologies Pvt. Ltd. (Streak.tech)’s software; (b) risks related to Streak AI Technologies Pvt. Ltd. (Streak.tech)’s computing and communications infrastructure; and (c) risks related to your software, hardware, and Internet connectivity. It is your obligation to thoroughly and appropriately test any trading strategyrithm before you deploy it and to continually monitor the operation of any deployed trading strategyrithm to ensure it is running properly and in compliance with any applicable rules.
a. Streak AI Technologies Pvt. Ltd. (Streak.tech)’s software/code might fail to work properly.
i. All software is subject to inadvertent programming errors and bugs embedded in the code comprising that software. Any of these errors and bugs can cause the software in which they are located to fail or not work properly. The applications software used to operate Streak AI Technologies Pvt. Ltd. (Streak.tech)’s Site and Services depends is subject to this risk. Despite testing and on-going monitoring and maintenance, inadvertent errors and bugs may still cause a failure inStreak AI Technologies Pvt. Ltd. (Streak.tech)’s applications software.
ii. We may update or revise our applications software in ways that cause some of its functionality or features to be lost or diminished. Any such loss or diminution could make Streak AI Technologies Pvt. Ltd. (Streak.tech) less valuable to you, cause certain functions and features in your strategies to fail, and require you to change your strategies and related trading strategies.
b.Streak AI Technologies Pvt. Ltd. (Streak.tech)’s computing and communications infrastructure may fail.
The operation of Streak AI Technologies Pvt. Ltd. (Streak.tech)’s Site and Services depend heavily on our infrastructure of computing and communications systems. The operation of this infrastructure is subject to several risks:
i. Any or all of the systems comprising our infrastructure could entirely or partially fail, function erratically, or function very slowly (thereby leading to latency, i.e., delays in receipt of and response to user requests).
ii. We may inadvertently cause a systems failure during planned or unplanned system maintenance.
iii. We may undertake software upgrades, either planned or unplanned, that take longer to implement or that causes your computer system or Internet connectivity to fail.
iv. We may change or remove functions and features whose change or removal causes your system to fail, function erratically, or function very slowly.
c. Your computer system and your Internet connectivity may fail.
Any of the components of your computer system and/or your Internet connectivity could fail entirely, function erratically, or function very slowly. The result of any of these occurrences could make it difficult or impossible for you to access the Streak AI Technologies Pvt. Ltd. (Streak.tech) Site or use the Streak AI Technologies Pvt. Ltd. (Streak.tech) Services.
You may incur losses (or fail to gain profits) while trading securities. You should discuss the risks of trading with the broker-dealer where you maintain an account or other investment professional. Streak AI Technologies Pvt. Ltd. (Streak.tech) provides you only with trading technology and can provide no investment, financial, regulatory, tax or legal advice.
Risks in Create, Backtest, and Deploying Strategies (strategies)
Creating, backtesting, and deploying computer-based trading strategies is subject to several risks, any of which can cause your strategies to not function as you had intended or fail to achieve one or more of the objectives of your strategies. Strategyrithmic trading is rapidly changing as a practice and as an industry. Models of markets used to write and test trading strategies are inherently limited and often fail to perform as expected. In addition, trading strategies are implemented in software programming code, and no matter how well designed and thoroughly tested, any such code can have logical errors and bugs that cause the strategies to malfunction or suggest trades that, if executed, would result in losses. It is your obligation to thoroughly and appropriately test any trading strategyrithm before you deploy it and to continually monitor the operation of any deployed trading strategyrithm to ensure it is running properly and in compliance with any applicable rules
a. Your strategyrithm may be designed on the basis of an incorrect understanding of technical indicators which may not work as expected.
b. Your strategyrithm may contain logical errors in the way you understand the indicators and comparators.
c. Errors may exist in the data used for testing your strategyrithm or the applicable model of the market.
d. Your strategyrithm might appear to succeed in a backtesting environment using historical data, but fail when using live data.
e. Your strategyrithm might appear to succeed with some data sources, but fail when using other data sources in our system.
f. Your strategyrithm may not achieve the returns you anticipate. There are no guarantees, or even expectations, that can be made about the future behavior of an strategyrithm.
Risks of Engaging in Live Strategyrithmic Trading and Related Strategies
Streak AI Technologies Pvt. Ltd. (Streak.tech) and Zerodha allows you to engage in live trading. Engaging in live trading subjects you to (a) the risks associated with trading generally, and (b) the risks associated with live strategyrithmic trading using Streak AI Technologies Pvt. Ltd. (Streak.tech).
THE OCCURRENCE OF ANY OF THE EVENTS ASSOCIATED WITH THESE RISKS, ALONE OR IN COMBINATION WITH ANY OF THE OTHER RISKS DESCRIBED IN THIS DISCLOSURE STATEMENT, COULD RESULT IN THE LOSS OF ALL OF THE MONEY YOU HAVE DEPOSITED IN THE BROKERAGE ACCOUNT YOU USE FOR LIVE TRADING BASED ON THE strategies YOU WRITE, TEST, AND RUN ON Streak AI Technologies Pvt. Ltd. (Streak.tech). LOSSES CAN HAPPEN MORE QUICKLY WHEN USING STRATEGYIC TRADING THAN OTHER FORMS OF TRADING. YOU SHOULD DISCUSS WITH AN INVESTMENT PROFESSIONAL THE RISKS OF TRADING IN GENERAL AND STRATEGYIC TRADING IN PARTICULAR. YOU USE ANY STRATEGY IN LIVE TRADING AT YOUR OWN RISK AND IT IS YOUR OBLIGATION TO THOROUGHLY AND APPROPRIATELY TEST ANY TRADING STRATEGY BEFORE YOU DEPLOY IT AND TO CONTINUALLY MONITOR THE OPERATION OF ANY DEPLOYED TRADING STRATEGY TO ENSURE IT IS RUNNING PROPERLY AND IN COMPLIANCE WITH ANY APPLICABLE RULES.
Certain Risks of Live Strategyrithmic Trading
In addition to all of the risks described above, live strategyrithmic trading is subject to the following types of types of risk:
i. Backtesting Cannot Assure Actual Results.
It is not possible for a computer model to truly predict what might have happened if an strategyrithm-based trading strategy was in play in a live trading environment. For example, the implementation of such a strategy can itself have an impact on the market, and the model may fail to account for real-life factors that impact the model. Moreover, the model may fail to account for execution costs including broker commissions, fees, and trading slippage.
A promising model result does not necessarily predict a successful strategy. Execution of the strategyrithm and the performance of that code may prove to be impossible in a live trading environment. Changes in various market factors not foreseen in a model can change, causing a strategy to fail. A backtest might be over-fitted to past data, and fail when the strategy is applied to new, live data. Orders that were executed correctly in the backtesting environment may be disallowed or rejected because of various reasons eg: margin requirement , illiquid stocks etc causing the strategyrithm to fail or otherwise not perform as expected. Attempts to create, exit, or cancel orders might fail, or might result in unexpected outcomes. Moreover, your strategyrithm might not handle market conditions that cannot be reasonably anticipated, i.e., a “flash crash” or an exchange outage. These market conditions, by definition, will not have been tested.
ii. The relevant market might fail or behave unexpectedly.
Market centers in which you seeking to implement your trading strategy may fail or behave incorrectly because of technical reasons relating to infrastructure, connectivity, and similar factors.
Your strategyrithm might suffer from adverse market conditions. Those conditions can include lack of liquidity, and abrupt and unwarranted price swings. Also possible are late market openings, early market closings, market chaos, and mid-day trading pauses, and other such disruptive events.
iii. Your broker may experience failures in its infrastructure, fail to execute your orders in a correct or timely fashion or reject your orders.
Streak.tech infrastructure on which you are running your strategyrithm might fail. In addition, even if Streak.tech infrastructure or your broker’s infrastructure and API are working correctly, the orders may get rejected in error or by design, incorrectly execute orders, or induce errors through unexpected behavior (such as returning messages out of sequence, incorrectly acknowledging orders, or posting incorrect execution reports). If at all, any losses arise from these risks, Streak AI Technologies Pvt. Ltd. (Streak.tech) bears no responsibility for this.
iv. The system you use for generating trading orders, communicating those orders to your broker, and receiving queries and trading results from your broker may fail or not function in a correct or timely manner.
Latency (i.e., delays) within and between your system, as well as those of your broker and the market in which you seeking to affect trades, might cause orders, corrections, and cancels to be placed or not placed in ways that are not desired. You may receive incorrect information, or be unable to get information, about your orders, your positions, or market conditions. Incorrect actions may be taken, or correct actions may not be taken, because of inaccurate or missing information. In addition, you may be unable to terminate or edit your strategyrithm.
v. Time lag at various point in live trading might cause unexpected behavior.
The time lag between the actionable alert generation time, the time at which you receive the actionable alert, and the time at which you take action on the alert, can cause a delayed order placement in the market, lead to cancellations, and cause you loss (or fail to gain profits) and may deliver unanticipated results vastly different from the backtest results.
vi. The systems of third parties in addition to those of the provider from which we obtain various services, your broker, and the applicable securities market may fail or malfunction.
Strategyrithmic trading depends on the availability of various services from third parties in addition to your service provider and your broker. These, for example, include providers of data services, computational services, and network connectivity. The operations of these third parties are beyond all of our reasonable control. Regardless of the reason for any failure by your broker, the market in which you seek to have trades executed, or these other third parties, we will not have any liability for any such failure.
Accurate and complete real-time price data is critical for the success of strategyrithmic trading. The systems of these data providers could experience failures, errors, and latency, which could result in missing, incorrect, or stale market data.
vii. Malicious and criminal activities might cause your strategies and strategy to fail or your brokerage account to be compromised.
All computers and networks are subject to malicious “hacking” attacks and criminal activities designed to misappropriate intellectual property, compromise personally identifiable information, steal funds, or any combination of such purposes. These attacks might be attacks on a target of opportunity or specifically targeted. Each of the various systems described above that are necessary for you to engage in live strategyrithmic trading is subject to such attack. Any such attack could cause the system so attacked to function improperly or not at all and could result in the misappropriation of your intellectual property, the compromise of your personally identifiable information and personal financial information, the theft of your funds and can cause your strategy be misbehave, malfunction or behave erratically.
The first time you login to Streak website, the web browser asks your permission to allow browser notification. Please allow the notification, else you won’t be getting any alerts on your system when the strategy condition is met.
Users can check the sample strategies provided on the dashboard to understand the working of indicators and how to use them. Streak is not responsible for any profits/losses occurred after deploying sample strategies in the market.
Once the strategy is live and an alert is generated based on the conditions in the strategy, our systems attempt to deliver the alert to the user over the internet. By using this service, the user acknowledges they understand that the alerts’ delivery is dependent on many factors such as the internet connection of the user, location, time of the day, server load, data availability etc.
We recommend users to be logged in to streak.tech, keep it open in their browser and maintain a fast uninterrupted internet connection to their devices to see the best alerts delivery.
Streak relies on third party services for market data eg. Kite (Zerodha Trading Platform) for ticks, OHLCV etc.If these services are down due to unforeseen circumstances or experience a down time due to various technical / non technical issues, Streak might not be able to generate and deliver the actionable alerts on time or at all.
Once a signal is generated, we try to send this signal to the user’s device over the internet. The delivery of these alerts are subject to network conditions of the user, internet services and technical issues.
Accurate and complete real-time price data is critical for the success of strategyrithmic trading. Our service providers or systems that provide data could experience failures, errors, lag, and latency which could result in missing, incorrect, or stale market data leading to no/wrong signals(alert) while triggering an alert.
All actionable order alerts are read-only market order alerts, where with a single click the user can send the order to the exchange. The actionable order alerts are made read-only in order to obtain consistency in the deployed and backtest results and to avoid any drastic increase in risk. If on any scrip / instruments such as Stock, Futures, Currency Futures etc., there is high volatility due to news based or non news based or any speculative events / positions, Streak is not responsible for higher slippages. You understand that volatility is the nature of the market.
Upon clicking on buy/sell on the order window, based on users network speed, a network latency can be experienced and any rapid clicks on the buy/sell button through same or different windows can lead to multiple order placements. Users take full responsibility on making sure the actions on the notifications are their own actions and are fully aware of their positions and strategy status when clicking on the buy/sell button.
Strategy deployment cycle / Strategy Cycle
The strategy cycle Entry and respective exit of an strategy is defined as an strategy cycle.
Once an strategy is deployed, the stocks are periodically tracked based on the conditions in the strategy. The periodicity with which the market is tracked is the same as the candle interval selected by the user while backtesting the strategy and shown in the strategy summary before deployment. An strategy’s ideal life cycle and the tree of events that can occur during an strategy’s life cycle, called an “strategy cycle”, has been explained below:
1. Waits for the first entry event as per the entry condition in the deployed section.
2. Once the entry event occurs, a entry signal (buy/sell) is triggered and an actionable alert is sent to the user.
3. The user can choose to act on the alert by clicking buy/sell or choose to ignore the alert and cancel it (cancelling from the notification window will terminate the strategy).
4. If the user has clicked on buy/sell in the alert, a market order is sent to the exchange (NSE).
5. The order will either be successfully placed by the exchange or it might get rejected due to reasons such as insufficient capital, etc. If the order gets rejected by the exchange, the strategy gets terminated. Streak does not verify the margin requirement, Kite determines the margin requirement as all orders are placed on Kite.
6. After the successful placement of an order, the strategy immediately triggers an SL-M order. This is a STOP LOSS order which the user can place or cancel. Canceling this order will NOT terminate the strategy and your positions will be open and if your Stop Loss is triggered later , then a notification is sent again to the user. (If you have already placed the SL-M order then if the SL hits first then this order will get executed and position is closed).
7. The strategy continues to track the stock waiting for the exit signal (SL or TP) or exit condition. Based on the entry price and the SL and TP percentages entered by the user, the SL and TP prices are calculated which are displayed to the user in the Deployed Page Subsection ENTERED.
8. When the SL/TP price occurs or if the exit condition is met, whichever occurs first, an actionable notification is sent to the user again. The user can then chose to act on it by clicking buy/sell or choose to ignore the alert and cancel it (cancel will terminate the strategy).Note: If you cancel the SL or TP alert from the notification/alerts page the strategy gets terminated. However, if you cancel the notification or alert from the order log in deployed page, the strategy is not terminated.
9. If the user has clicked on buy/sell in the alert, a market order is sent to the exchange (NSE) and the strategy’s life cycle is now complete.
10. The “strategy cycle” sequence defined above is an ideal sequence and is subject to market conditions and user behaviour. Based on the user’s action or market conditions, the sequence might not completely occur in the same way as it is intended to, since this sequence may have been interrupted due to various reasons such as, the user stopping the strategy, order rejection by the exchange, network lag, network error etc.
11. For both intraday and overnight strategies, the strategy cycle has to be defined by the user during deployment. Depending on the number of strategy cycles, the strategy moves to a ‘complete’ state and is stopped.
12. Margins are not blocked till the user acts on the actionable alerts (buy/sell) and the order is sent to the exchange.
13.The strategy can be stopped by the user at any time in the life cycle of the strategy by clicking on the “Stop” button. If the strategy has not entered a position, it will be directly stopped otherwise the user will be presented with an option to either stop the strategy by keeping the positions open or to exit positions at market and stop the strategy. The strategy will no longer be tracked and no further alerts will be sent to the user for the respective strategy.
14. In cases where the user stops the strategy and chooses to keep positions open, the responsibility of closing any and all positions is solely on the user, and user will get no alerts for that deployed instrument once the strategy is stopped.
15. For order type MIS, all strategies will be stopped at 3:20 PM (4:30 PM for currency futures) and the open positions, if any, will be squared off by the respective broker (example, Zerodha) before market close and charges for closure by kite is applied
16. All actionable order alerts sent to the user can be used only once and will be active for only 5 minutes after which the alert expires in the notification/ alerts section. However, these alerts are actionable in the order log section of the Deployed Page.
17. All actionable alert orders are market orders and users can expect price variation from the price at which the alert was triggered to the price at which the the order is placed. Slippages are expected to occur.
18. If the user’s order is rejected due to various reasons such as shortage of funds, circuit limit hit, no liquidity in market, etc, the strategy will be stopped and no further alerts will be sent for that strategy. This is done in order to avoid unnecessary tracking of instruments where the order placement failed. However, the user can deploy the strategy again and take action on any new alerts that get generated.
Currency futures You can create, backtest and deploy currency futures in Streak. Each quantity corresponds to 1 lot size i.e, 1000. MIS strategies will be stopped at 4:30 PM and open positions, if any will be squared off.