A python trading bot could be just the thing you need to help to step your trading up a gear. Here’s how to create python trading bot and boost your profits.
- Get PyCharm
- Pick Up Python Exchange Library From Github
- Collect and Analyze Previous Data from Coinbase and Binance
- Tracking Profit and Loss
- Coming up with new strategies using historic data
When you want to create python trading bot, the first thing you need to do is get yourself PyCharm (from Czech company JetBrains) along with all its dependencies and libraries. It’s an IDE (Integrated Development Environment) that offers code analysis, graphical debugging, a unit tester, and more besides. If you’re new to this sort of project then you’ll appreciate its ease-of-use as you get to grips with building your python trading bot. PyCharm is a cross-platform solution that comes in “community edition” and “professional edition” flavors, (the difference is that the professional version includes more features) so whether you’re using Windows, Mac OS, or Linux there’s bound to be a version that can help you create python trading bot.
Those libraries and dependencies that we mentioned above mean you don’t have to write as much code because they offer functions and methods that let you perform various actions. You can get your hands on the majority of the libraries using PyPI and then use pip to install them. Doing this manually for every one of them could become very time-consuming, so you might want to handle such chores with a script instead.
Pick Up Python Exchange Library From Github
The source code is available to download and install, or you can use the PyPI repository. Both methods will install the Python exchange library. Your other option is to clone from the source, but either method will work just as well.
When you create your python trading bot you can add portfolio functionality on Binance. Because putting together a portfolio is not difficult, you can include a python project that’s already been completed and that has good functionality. A template design from ‘Tracking a Portfolio with Python’ will provide you with the ability to:
- handle crypto (expressed in Satoshis) deposits, withdrawals, buying and selling, plus daily profit and loss reports at various intervals.
- put together ‘play money’ portfolios (for example) and handle tasks like indexing a crypto profile (Hodl bot).
- Save all data in the .csv format, which is readily accessible using spreadsheet software.
- Incorporate with Matplotlib and Pandas Data Structure for Data Visualization and Data Analysis respectively.
Collect and Analyze Previous Data from Coinbase and Binance
This part shows you how to collect and make use of historical data from Coinbase and Binance. It describes how you can gather and save information for your strategy. It will give the trading bot a rundown of your trading strategy, informing it about things like which currencies to buy, when to buy them, and when to sell them.
Tracking Profit and Loss
There is code you can find on github labelled as ‘Portfolio Tracker’ and you can fork and modify this to do the same thing for a cryptocurrency portfolio on Binance. Cryptrack is another ideal candidate for your python trading bot, because it lets you grab data from Coinmarketcap to help you find gains and losses at whatever interval you choose. The code from this trading project relies on algorithms which you can use to add some great functionality first of all, then you can add more with the ‘Portfolio Tracker later on.
Coming up with new strategies using historic data
Historic data helps your own trading bot to make better trading decisions, like when you should buy or sell. The bot can use all the information that you give it to determine the best short- or long-term trends and thus help it choose the most appropriate strategies.