TWS Pairs Trading Application

A sophisticated Python application for automated pairs trading using Interactive Brokers TWS (Trader Workstation) API. This application provides a user-friendly interface for analyzing and executing pairs trading strategies, with real-time market data monitoring and statistical analysis tools.

Screenshots

Main Application Interface

Help Section

Features

• Real-time market data streaming from TWS
• Statistical analysis of trading pairs (correlation, cointegration)
• Trading signals based on spread z-score
• Interactive charts and metrics dashboard
• Support for multiple trading pairs
• Real-time performance monitoring
• Customizable trading parameters
• Comprehensive error handling

Requirements

• Python 3.9+
• Interactive Brokers TWS/Gateway running locally
• TWS API configured for READ-ONLY mode on port 7497
• Required Python packages (see requirements.txt)

Installation

Method 1: Using pip

1. Create a virtual environment:

python -m venv venv

2. Activate the virtual environment:

source venv/bin/activate  # On Unix/macOS
venv\Scripts\activate     # On Windows

3. Install dependencies:

pip install -r requirements.txt

Method 2: Development Installation

For development purposes, you can install the package in editable mode:

pip install -e .

This will install the package in development mode using setup.py, allowing you to modify the code and see changes immediately.

Usage

1. Ensure TWS is running and configured:

   • TWS must be running in READ-ONLY mode
   • API port should be set to 7497
   • Enable API connections in TWS settings

2. Run the application:

python run.py

3. Open your browser and navigate to the displayed URL (typically http://localhost:8501)

4. Using the application:

   • Connect to TWS using the sidebar button
   • Select your trading pair (default: NVDA-TSM)
   • Monitor real-time price movements and spread
   • View key metrics like correlation and z-score
   • Watch for trading signals based on spread divergence

Configuration

The application settings can be configured in src/config/settings.py:

• TWS connection parameters
• Trading pairs configuration
• Strategy parameters (z-score threshold, lookback period)
• UI settings and theme colors

Project Structure

TWSPairsTradingApp/
├── src/
│   ├── config/
│   │   ├── __init__.py
│   │   └── settings.py
│   ├── core/
│   │   ├── __init__.py
│   │   ├── tws_connection.py
│   │   └── pair_analyzer.py
│   ├── ui/
│   │   ├── __init__.py
│   │   └── app.py
│   └── __init__.py
├── requirements.txt
├── setup.py
├── README.md
└── run.py

Development

Setting Up Development Environment

1. Clone the repository:

git clone https://github.com/yourusername/TWSPairsTradingApp.git
cd TWSPairsTradingApp

2. Create and activate a virtual environment:

python -m venv venv
source venv/bin/activate  # On Unix/macOS

3. Install in development mode:

pip install -e .

Running Tests

python -m pytest tests/

Error Handling

• The application includes comprehensive error handling for TWS connection issues
• Failed data fetches are logged and reported in the UI
• Connection status is always visible in the sidebar
• Automatic reconnection attempts on connection loss
• Detailed error logging for troubleshooting

Contributing

1. Fork the repository
2. Create a feature branch (git checkout -b feature/AmazingFeature)
3. Commit your changes (git commit -m 'Add some AmazingFeature')
4. Push to the branch (git push origin feature/AmazingFeature)
5. Create a Pull Request

License

MIT License

Acknowledgments

• Interactive Brokers TWS API
• Streamlit for the web interface
• Python data science community