Trading Bot For Volatile Crypto Coins On Centralized Exchanges

There are numerous trading bots available on the internet, but they all do the same thing: sell high and buy cheap. This draws a lot of traders, but what the majority of new traders don't realise is that if crypto assets never return to their buying price after falling from their entry price, they a

Project Title

Trading Bot For Volatile Crypto Coins On Centralized Exchanges

Project Area of Specialization

Artificial Intelligence

Project Summary

There are numerous trading bots available on the internet, but they all do the same thing: sell high and buy cheap. This draws a lot of traders, but what the majority of new traders don't realise is that if crypto assets never return to their buying price after falling from their entry price, they are out of money and could lose thousands of dollars. Many new traders are unaware of the need of risk management, which supplies exchanges with a significant amount of money from inexperienced traders.

We want to create a bot that will look for coins that have increased in value over time and deposit money into them.We want the bot to choose coin based on its price movement in percentage in certain timeframe. We are creating it mainly to Trade in P&D (pump and dump) situations. We are also adding Trailing stop-losses after the coin is bought.

Project Objectives

Aims and Objectives

The objectives of the thesis are shown as following:

1. Choosing coin based on its price movement in percentage in  certain timeframe
2. Trading Bot for P&D (pump and dump) situations
3. Trailing stop-losses

Automatically selecting coin

we have to select coins ourselves in other bots .But our Bot will select coins automatically.

Trailing stop losses

A trailing stop-loss is not the same as a standard stop-loss. If you use a standard stop-loss and set the percentage to 6%, the currency will be sold at a loss if it falls more than 6%. When using trailing stop-loss, it will maintain track of the price and adjust the stop-loss rate upwards as the currency price rises. So, if you set the trailing stop-loss percentage to 1%, your stop-loss will be minus 1% of the highest rate it achieved. So, if the currency rises 10%, the stop loss (sell) will be at a profit of 9%. When you use a trailing stop, you don't lose money if your profit percentage rises faster than you predicted.A trailing stop loss order (also known as a trailing-stop order) is a form of trading stop order that minimises risk and protects profits. This exit method lowers a stock's or stocks' stop price by a percentage below the market price.

For example, you can set a trailing stop of 10% on your investment, which means that if the stock price falls 10%, your stock will be instantly sold. As a result, it provides you with profit protection, ensuring that you do not lose more than 10% of your investment. expected.

Project Implementation Method

There are five steps we will follow to complete this project

1. API Generation.
2. Reading of API Documentation. 
3. Designing of Bot
4. Testing and optimization. 
5. Running Bot in Real time.

API Generation

API is used to link our bot to exchanges, so we need to generate API’s to link our Bot. Steps to follow to generate API.

The first step is to create an account with Binance. You only need to enter your email and create a password.

After logging in to your Binance account, click on the profile icon on the top right-hand side of the screen. From there, select API Management.

Next, you will be asked to create a label for the API key. If you plan to create multiple keys, it’s a good idea to use a descriptive name here so that you can easily distinguish it later on.

If you have two-factor authentication enabled, you will be asked to authenticate once again at this point.

Your API key should be created at this point. Note that this is the only time your API secret will be revealed. If you navigate away from this screen, you will not be able to see it again. In such a scenario, you will need to delete your API key and start over again by creating a new one.

Reading of API Documentation

 We'll need to examine exchange API documentation to figure out how to link our Bot to them.

Designing of Bot

First we need to discuss how our Bot is different from other Bots running in the market. Using some parameters.

Parameters

• If some coin goes up in some time frame, it will put our money in that coin   with ”Take profit” and “stop loss”.
• If the price of trading coins goes up to a certain extent in a certain time frame then we will move our stop loss to break even and the take profit will move up.
• Bot will move our stop losses and take profit on the base of profit-to-loss ratio.

 

Testing and optimization

We will test our bot using different scenarios.

 If there are some errors we will optimize it, so our bot can work properly.

Benefits of the Project

Given the current market trend of bitcoin, when we introduce this application after optimization, it will be more advantageous for traders as well as professional businessmen. After optimization, we will be able to market this bot to both novice and professional traders. This will also assist us in identifying difficulties, and once we have received feedback from the public, we will be able to integrate our system and attempt to enhance it.When people notice the difference between this application and the rest of the application being used, they will prefer it because of its new automatic module .One of the benefits of this for many people is that the people who used to go and select the coin manually  they will now automatically selected through this .It can be more beneficial for people and people may prefer it more.When people prefer it and start buying it, its market demand will increase which will benefit our product.

Technical Details of Final Deliverable

We are using ATOM Environment to design our bot. We are using Python (version 3.10.1) to design our bot, and using Mainnet and testnet account of Binance. Testnet account so we can test our bot working. And Mainnet account to connect the bot to use in real life. We need API from both these accounts so we can connect to the bot. After making this bot we will upload the file to github repository so the user should have a github account to download it.

Final Deliverable of the Project

Software System

Core Industry

IT

Other Industries

Core Technology

Artificial Intelligence(AI)

Other Technologies

Sustainable Development Goals

Required Resources

If you need this project, please contact me on contact@adikhanofficial.com