Creating my own Crypto trading bot
In the past few months, I started interested in Crypto. I finish some courses from Coursera as well. I try to explore a bit more detail on Crypto and start buying a few popular ones like Bitcoin and Etherium. Next month, it goes to bear market (My first impression is not about making money but losing it).
I was really impressed with blockchain and decentralize finance. I lived in Myanmar, so I know how it feels like to get banned. I know very little about inflation in the past and I started asking how does money printing works. I know why it’s important to learn economics and finance. In short, I was really surprised by the Crypto and I am thinking to invest in the long run.
A few months passed by and the market changed to a bull market. At that stage, I was wondering what if I can create a bot? Since I don’t know about the training it’s pretty hard at the beginning. I read and watch about the candles, then RSI, then moving average, etc…
I know I want to create a bot. But I don’t know where to start. So, I start exploring the repos on Github. And figure out what they try to do. Read quite a lot of Python code. Saw lots of people using Python’s scientific libraries such as Numpy. I watch a few YouTube tutorials and I was finally able to make a bot. I even write scripts to backtest. It was quite fun and I learn python’s string, list, and a little bit of NumPy.
Here is my bot flow.
If 1 min RSI is under 30 and if I am at the buy position. Then buy $ amount that I provided. When the purchase is successful, switch to the sell position.
When at the sell position, check for the current crypto amount + my min profit + commission that I have to pay for the trade. If the requirement is fit, then the bot will sell the crypto. Then, I got profit.
It was quite fun and work in the bullish market. When it’s at a bear market. My crypto will be less valuable in the US dollar. But, it’s still the same amount as in Crypto. I will never lose the money until I sell. I was testing out with my favorite crypto. So, it’s not a big issue.
If you want to know what’s RSI and how does it work. You might interest to take a check on the following video.
But it’s taking so much time to become a trade. I start thinking how about if I can detect it’s bull or bear market. I was exploring and can’t make it. I have to learn more detail on Python scientific computing libraries.
I stopped trading bot at this stage. I did not lose the money. I was testing the bot at the bullish market.
In trading, there are patterns. Like 1-hour graph of particular crypto going under RSI 30 is cheap. In my case, I updated my crypto bot to notify me at Telegram. I also created crypto price prediction with scipy as well (Not very useful with my case. But, it’s fun to learn. Since you can know the price later the next day.)
That’s my experience of creating my own crypto trading bot and experience. It’s so much fun. While I was creating and running this bot, I am wondering how many institutional companies are using algorithms to trade. It’s amazing and I feel powerful since I can code.
After exploring this bot, I am really interested in Python’s scientific libraries. They are so powerful. I started attending Applied Data Science with Python Specialization on Coursera as well. If you have data, you can make things to understand and predict. I gonna learn more about Data Engineering, Data Analytics, and Data Science in the future. When I feel confident with my skill, I will update this bot and will update you all about how it goes and what did I learn.