Zerodha Trading Agent (MCP x Bun.js) MCP Server: Intelligent Stock Trading Integration

Overview: What is Zerodha Trading Agent (MCP x Bun.js) MCP Server?

The Zerodha Trading Agent (MCP x Bun.js) is an advanced, intelligent stock trading agent built using Bun.js (a fast JavaScript runtime), Zerodha Kite Connect API, and Claude Model Context Protocol (MCP). This server automates the process of placing trades by leveraging triggers for auto-buy/sell stocks based on user-defined conditions, with long-term plans to introduce stock future prediction using historical data and live news. The agent ensures secure authentication, periodic token refreshes, and is fully integrated into the Claude Toolchain.

🔧 Core Features & MCP Capabilities

The Zerodha Trading Agent (MCP x Bun.js) server offers a suite of robust features that enhance the capabilities of AI applications through Model Context Protocol (MCP). These include:

• Secure Authentication: The server uses a secure authentication protocol to ensure that all interactions are protected and compliant with Kite Connect API requirements.
• Periodic Token Refresh: Automatic access token refreshes every 24 hours, ensuring continuous availability without manual intervention.
• Smart GTT-like Watchlist: Future roadmap improvements will introduce a smart GTT-like watchlist system for automated buying/selling based on predefined rules and triggers.
• Stock Future Prediction: Using historical data and live news analysis to predict stock trends in the future.
• Superfast Runtime with Bun.js: Built using Bun.js, this server provides unparalleled speed and efficiency for trading operations.

Data Flow & Protocol Implementation

The MCP protocol flow diagram illustrates how AI applications can interact seamlessly with Zerodha Trading Agent (MCP x Bun.js):

graph TD
    A[AI Application] -->|MCP Client| B[MCP Protocol]
    B --> C[Zerodha Trading Agent (MCP x Bun.js)]
    C --> D[Data Source/Tool]
    style A fill:#e1f5fe
    style C fill:#f3e5f5
    style D fill:#e8f5e8

This diagram shows how the MCP Client acts as a bridge between the AI application and Zerodha Trading Agent, ensuring smooth data flow and efficient protocol interactions.

⚙️ MCP Architecture & Protocol Implementation

The Zerodha Trading Agent (MCP x Bun.js) employs a unique architecture that integrates various components to form a cohesive system. Key elements include:

• Bun.js Runtime Environment: This runtime framework provides high-performance execution for the agent's functionalities.
• Zerodha Kite Connect API: Enables secure and seamless communication with Zerodha’s trading platform, allowing for real-time order placement and updating.

Code Sample: MCP Configuration

The following code snippet demonstrates how to configure an MCP server in a JSON format:

{
  "mcpServers": {
    "zerodha-trade": {
      "command": "/Users/vamsi/.bun/bin/bun",
      "args": [
        "--directory",
        "/Users/vamsi/Projects/zerodha-trade",
        "index.ts"
      ],
      "env": {
        "API_KEY": "YOUR_KITE_API_KEY"
      }
    }
  }
}

This configuration ensures that the AI application can interact with the Zerodha Trading Agent through its MCP endpoint, accessing and executing trading functions.

🚀 Getting Started with Installation

To set up and run the Zerodha Trading Agent (MCP x Bun.js) server, follow these steps:

1. Install Dependencies: Ensure you have Bun.js installed by running:

   curl -fsSL https://bun.sh/install | bash
   

2. Configure API Credentials: Update the tokenStore.json with your API credentials.

3. Run the Server: Execute the server using:

   bun index.ts
   

💡 Key Use Cases in AI Workflows

The Zerodha Trading Agent (MCP x Bun.js) can be integrated into various AI workflows, such as:

• Real-Time Portfolio Management: Automate stock buying and selling based on real-time market conditions.
• Trade Execution Automation: Integrate with AI models to predict optimal trading times and quantities.

Use Case 1: Real-Time Portfolio Management

A financial analyst uses the Zerodha Trading Agent (MCP x Bun.js) by integrating it into a predictive model. The model analyzes stock trends and market signals in real-time, triggering buy/sell orders via MCP endpoints every minute. This integration ensures dynamic portfolio management.

Use Case 2: Trade Execution Automation

An AI-driven trading bot uses the Zerodha Trading Agent to automate trade execution based on predefined criteria. When an optimal entry or exit point is identified by the machine learning model, it triggers a trade through the MCP protocol, ensuring quick and accurate execution without human intervention.

🔌 Integration with MCP Clients

This server supports integration with various AI applications:

• Claude Desktop: Full support, allowing seamless interaction between the agent and AI application.
• Continue: Full support for all core functionalities.
• Cursor: Limited tools integration but no full client compatibility yet.

Compatibility Matrix

MCP Client	Resources	Tools	Prompts
Claude Desktop	✅	✅	✅
Continue	✅	✅	✅
Cursor	❌	✅	❌

This matrix highlights the supported functionalities, providing clarity on client compatibility.

📊 Performance & Compatibility Matrix

The Zerodha Trading Agent performs well in both transactional and analytical roles:

• High Speed with Bun.js: Provides quick execution times for frequent trading operations.
• Secure Token Management: Ensures continuous access without manual intervention.
• Real-Time Data Handling: Capable of processing real-time market data efficiently.

🛠️ Advanced Configuration & Security

To enhance security and performance, consider implementing the following configurations:

• Secure Environment Variables: Store sensitive data like API keys securely in environment variables instead of configuration files.
• HTTPS Tunneling with ngrok: Use ngrok to tunnel local server traffic securely over HTTPS as required by Kite Connect.

❓ Frequently Asked Questions (FAQ)

1. How do I set up the Zerodha Trading Agent?

   • Follow the steps outlined in the installation guide: Install dependencies, configure API keys, and run the server using the provided commands.

2. Can this agent integrate with other financial tools besides Kite Connect?

   • The MCP protocol allows for flexibility, but initial integration is focused on Zerodha Kite Connect due to its extensive features and widespread use in trading environments.

3. How often are access tokens refreshed automatically?

   • Access tokens are automatically refreshed every 24 hours to ensure uninterrupted service.

4. Is there a web UI or GUI for this agent's control panel?

   • Currently, the Zerodha Trading Agent (MCP x Bun.js) runs as a command-line tool with no built-in web UI. However, a GUI can be developed separately to serve this purpose if needed.

5. Can this server predict stock trends using machine learning models?

   • Yes, future updates will include features for predicting stock trends by analyzing historical data and live news events.

👨‍💻 Development & Contribution Guidelines

Contributions are welcome! Developers can contribute by:

• Improving the existing functionality
• Adding new AI integrations and workflows
• Enhancing documentation to make it more user-friendly

Follow these steps to get started:

1. Fork the Repository: Clone or fork the repository from GitHub.
2. Clone Locally: Use git clone to download a local copy of the project.
3. Setup Development Environment: Set up the development environment by installing necessary dependencies and running tests.
4. Contribute Code: Push your changes to a branch in your forked repository.

🌐 MCP Ecosystem & Resources

For more information on Model Context Protocol (MCP) and its ecosystem, refer to these resources:

• Model Context Protocol Documentation
• Zerodha Kite Connect API
• Bun.js Official Website

By leveraging the Zerodoha Trading Agent (MCP x Bun.js), developers can build powerful AI applications that integrate seamlessly with financial tools and protocols.