There are a lot of components to think about, data to collect, exchanges to integrate, and complex order management.
This guide will provide a detailed step-by-step break down on the different components you need in order to build a complete crypto trading bot. Think of these as the building blocks to your trading bot.
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Reminder: This is an educational experience. The code examples are not designed to be production ready. They are designed to help provide a base understanding of how to build a trading bot. Getting them production ready is your responsibility. Why Trading Bots? Unlike humans, trading bots can consistently execute strategies that are precise. An example of a precise strategy that is difficult for humans to implement is arbitrage.
Arbitrage trading is a strategy that is almost exclusively executed by trading bots in the world today. Trading bots can execute orders within milliseconds of an event occurring.
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More generally than simply what is possible, traders want something that is reliable and deterministic. That way there is no opportunity for error. When the strategy is set, the strategy will be executed based on the parameters of the algorithm. Setup Before we can begin, we must set up our environment. Sign up for an account. If you have not yet enabled 2FA for your account, you will first need to go through the process of setting up 2FA.
Enter your 6-digit verification code and account password. Once you have verified your account, Shrimpy will send you an email that will require you to confirm the creation of the API key. Confirm your email by clicking on the link in the verification email. After confirming the creation of the API key in your email, you can then see a card that represents your developer API key.
The public key will be displayed by default. This can only be done one time, so securely store the secret key once it has been shown. The private key will not be shown by default and can only be viewed ONE time. That means after you view your private key, Shrimpy will never show you the key again. Copy both the public and private secret keys to secure locations.
Do not ever share this API key with anyone. We will use all of the settings for this tutorial guide, however, you can reconfigure your setup once you are ready to deploy your production version of your trading bot. Note: You can create multiple API keys. We don't need to buy any credits to test Shrimpy, but you can purchase credits at any time on the "Payment" tab.
How to create and test a crypto trading bot - walk-through | themainebarkery.com Help Center
This will look something like the screenshot below. Purchase credits when ready. Before credits can be purchased, we first require you to link a payment method. After linking a payment method, you can enter the value of the credits you wish to purchase. Setting Up Our Python Environment There are a few things we will need to set up for our Python environment before we can start coding.
First, start by installing the Shrimpy Python Library. These libraries are Pandas and Plotly.
If you are using Python2, please update your version of Python. That is the exchange API keys. These API keys are retrieved from the exchange that you want to use for trading. With the Shrimpy personal plan, you can connect to 20 different exchange accounts at one time, but for these examples, we will only connect to one.
Log into your exchange account and follow the appropriate tutorial in our list of exchange specific articles here.
These articles will help you get how to set up a trading bot to your API key and copy them into a secure location. Once the API keys have been copied, you can close out of the article. You do not need to paste them into the Shrimpy portfolio management application since we will only use them for our scripts throughout these example tutorials. The following examples will include blanks where you will need to input your public and secret API keys for both Shrimpy and the exchange.
When you see: Input the exchange specific API keys you generated in previous steps. Collecting Pricing Data One of the most important pieces of information for a bot to decide when to execute a trade is pricing data.
Exchange specific pricing data should be used to calculate the optimal trade times, as well as the exact placement of the orders. Generally, order book data is used to make the specific decisions on where to place an order and trade data can be used to determine when an order should be executed. Simple Price Ticker The simple price ticker is a way to access the latest prices for each asset on an exchange.
This value is updated on a 1-minute interval. The purpose of this endpoint is for display purposes only.
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This endpoint is not designed for order execution or arbitrage. We provide other endpoints for those purposes. That means there is no delay between the time the trade is executed on the exchange and this price ticker updates. This endpoint is more complex, however, as it will require a websocket connection.
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As the order book is updated live, you can access a snapshot of this live data to either execute trades, provide information for decision making, or even just analyze the market. That way your local copy of the order book is never outdated. We only need to connect an exchange account one time. Without this information, we would be guessing at the quantity of funds we have available for each asset.
Use this script to access the balances for any exchange account that has been linked to your Shrimpy Developer APIs. It is important to remember that trading is complex. The examples provided here will be a great starting point, but they are not the finish line.
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Developing a complete trade placement and execution algorithm will take time. Simple Trade Create a trade by first how to set up a trading bot the available balances on the exchange you have connected to Shrimpy.
In this example, we will execute trades in order to consolidate all of our funds into BTC. Running this script will execute live trades on your real exchange account. That means you should only run this script if you are intending to move all of your asset holdings into BTC.
The quote currencies will be determined based on the paths that will result in the best order execution. This is typically done through candlesticks.
In this example, we will show you how to generate candlesticks for viewing or strategy integration. None of the examples provided are suitable for production. They are for educational purposes only to provide a way to get familiar with the concepts to build a trading bot.
How to Make a Crypto Trading Bot Using Python - A Developer's Guide
There are some trading bots currently available in the market that you can use. They are ready to onboard new users and start automating your portfolio without any development. At Shrimpywe have taken this idea to heart.
As a result, we have created the most sophisticated trading services that are extremely easy to use.