Pairs Trading Strategy for NSE Stocks

A Python implementation of the pairs trading strategy inspired by Mark Whistler, featuring backtesting capabilities and automated daily triggers for identifying profitable trading opportunities.

🚀 Features

• ✅ Supports all NSE stocks
• ✅ Automated stock data fetching (no manual uploads required)
• ✅ Backtesting system to evaluate strategy performance
• ✅ Daily tracking of trade signals
• ✅ Database management to prevent redundant downloads
• ✅ Customizable parameters for backtesting

🛠️ Installation

Prerequisites

1. Ensure you have Python installed. Install required dependencies using:

pip install -r requirements.txt

2. Set up MongoDB Connection

Update the CONNECTION_STRING variable in database.py with your MongoDB connection string. For example:

CONNECTION_STRING = "mongodb://localhost:27017/"  # Replace with your connection string

📊 Usage

1️⃣ Download Data & Update Database

1. Define stock symbols in stock_symbol.txt (one symbol per line, in NSE format).
2. Run the script to fetch or update stock data:

   python database.py

   • If stock data does not exist, it will be downloaded automatically.
   • If stock data already exists, it will be updated to the latest date.

2️⃣ Run Backtesting

1. Modify backtesting.py to adjust strategy parameters (e.g., entry/exit conditions).
2. Run the backtesting script:

   python backtesting.py

   • This simulates trades based on historical data and provides performance metrics.

📈 Example Output & Trade Visualization

Below is an example of the expected console output:

100%|████████████████████████████████████████| 803/803 [02:50<00:00,  4.72it/s]
Total Trades: 27
Number stock Sells:  27
Number stock Target Sells:  25
Number stock Stoploss Sells:  2

📊 Trade Signal Chart

After running backtesting.py, a chart will be generated displaying buy and sell signals on the stock price movements. This visualization helps traders analyze entry and exit points effectively.

Example Chart:

📅 Future Enhancements

• 🔹 Automated trade execution for live trading
• 🔹 Enhanced visualization (performance graphs, trade signals)
• 🔹 Support for additional stock exchanges
• 🔹 Deploy as a Web App for better accessibility and user experience

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📩 Contact: Have questions? Reach out via Email!