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Connecting LumiBot to Interactive Brokers Through Trader Workstation

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Summary

This legacy LumiBot guide explains how to connect a trading strategy to Interactive Brokers through Trader Workstation (TWS). It identifies the API settings to enable, including ActiveX and socket clients, and says to turn off read-only access. It distinguishes the socket ports for live and paper trading and advises testing in paper mode first.

The guide also describes the configuration values needed for a connection, including the port, client ID, and local IP address, then outlines creating a broker instance and attaching a sample strangle strategy to LumiBot’s trader. It provides setup instructions and an integration example, but no evidence about trading performance or execution quality. The page explicitly labels this method deprecated and directs readers to another Interactive Brokers tutorial, so the details may no longer match current software or recommended practice.

Key ideas

  • TWS must allow API clients and permit orders through the API for this connection method.
  • The guide assigns separate socket ports to live and paper trading.
  • A client ID and local host address are among the required connection settings.
  • The example connects a LumiBot strategy to an Interactive Brokers broker instance.
  • The method is marked deprecated, and the document gives no performance evidence.

Tags

ExecutionOptions
Full text
# Import interactive brokers


Interactive Brokers Legacy
===================================

.. meta::
   :description: This method has been deprecated. Please use the other Interactive Brokers tutorial. LumiBot documentation.

.. note::
    This method has been deprecated. Please use the other Interactive Brokers tutorial.

Once installed, navigate in Trader Workstation to ``File -> Global Configuration -> API -> Settings`` The key settings required to trade using Lumibot are:

#. Enable ActiveX and Socket Clients
#. Disable Read-Only API
#. Socket port ``7496`` for live trading, ``7497`` for paper account trading.
    * NOTE: It is highly recommended to thoroughly test your algorithm in paper trading mode before trading live.
#. Master API Client ID: You can find in the Trader Workstation by going to ``File -> Global Configurations -> API -> Settings``, then looking for "Master API client ID". This can be any number you choose up to ``999``. You will use this in your configuration file to log in.

.. image:: interactive_brokers.png

Set up your credentials as follows in ``credentials.py``:

.. code-block:: python

    INTERACTIVE_BROKERS_CONFIG = {
        "SOCKET_PORT": 7497,
        "CLIENT_ID": "your Master API Client ID three digit number",
        "IP": "127.0.0.1",
    }

Set up your entry point file as above, except using Interactive Brokers. Here is an example of a completed file:

.. code-block:: python
    :emphasize-lines: 3,12

    from lumibot.traders import Trader
    # Import interactive brokers
    from lumibot.brokers import InteractiveBrokers
    from lumibot.strategies.examples import Strangle
    from credentials import INTERACTIVE_BROKERS_CONFIG


    trader = Trader()
    # Initialize interactive brokers
    interactive_brokers = InteractiveBrokers(INTERACTIVE_BROKERS_CONFIG)

    strategy = Strangle(broker=interactive_brokers)
    trader.add_strategy(strategy)
    trader.run_all()

You can also see the file simple_start_ib.py for a working bot here: https://github.com/Lumiwealth/lumibot/blob/master/getting_started/simple_start_ib.py

Shown in full with attribution under the source's licence. Licence: GPL-3.0

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.