Algo Trade MCX Strategies
You can automate your commodity strategies on AlgoTest and place real orders on MCX through your broker.
info
Live MCX execution is available on Zerodha only. More brokers are coming soon.
Before you go live​
- Buy the MCX add-on. See The MCX plan.
- Activate the commodity segment on Zerodha. MCX orders are rejected if the segment isn't active on your trading account.
- Connect Zerodha. Go to Broker Setup and connect your Zerodha account.
- Backtest and forward test first. Make sure the strategy has been backtested and forward tested, and that it fits your risk appetite.
Deploy the strategy​
Deploying an MCX strategy works the same way as for indices. For the full steps, see Algo Trade.
Check margin and quantity​
Review these before you deploy. Commodity contracts can need much more margin than you expect.
| Setting | Why it matters |
|---|---|
| Lot size | Each commodity has its own lot size. One lot of NATURALGAS moves ₹1,250 per point; one lot of GOLDPETAL moves ₹1. See MCX Instruments. |
| Big or mini contract | A big contract is 5 to 10 times the size of its mini. Switching from CRUDEOILM to CRUDEOIL multiplies your exposure by 10. |
| Available margin | Make sure your Zerodha account has enough free margin in the commodity segment for every leg, or orders are rejected. |
warning
AlgoTest's Margin Calculator doesn't support MCX. Check MCX margin requirements with Zerodha before you deploy.