Code a simple trading bot

Creating a simple Python trading bot involves several steps. Below is a basic example of a bot that uses the ccxt library to trade on cryptocurrency exchanges. This bot will place a market buy order if the current price is lower than a predefined threshold.

Prerequisites:

  1. Install ccxt pip install ccxt
  2. Obtain API keys from the exchange you wish to trade on (e.g., Binance, Coinbase, etc.).

Simple Trading Bot Example

import ccxt
import time

# Exchange and API key setup
exchange = ccxt.binance({
    'apiKey': 'YOUR_API_KEY',
    'secret': 'YOUR_API_SECRET',
    'enableRateLimit': True
})

# Trading parameters
symbol = 'BTC/USDT'  # Trading pair
threshold_price = 30000  # Buy if the price is below this value
amount = 0.001  # Amount of BTC to buy

def get_current_price():
    ticker = exchange.fetch_ticker(symbol)
    return ticker['last']

def place_buy_order():
    order = exchange.create_market_buy_order(symbol, amount)
    return order

def run_bot():
    while True:
        try:
            current_price = get_current_price()
            print(f"Current price: {current_price}")

            if current_price < threshold_price:
                print(f"Price is below threshold. Placing a buy order for {amount} {symbol}.")
                order = place_buy_order()
                print(f"Order placed: {order}")
            else:
                print(f"Price is above threshold. No action taken.")

            time.sleep(60)  # Wait 1 minute before checking again
        except Exception as e:
            print(f"An error occurred: {e}")
            time.sleep(60)  # Wait 1 minute before retrying

if __name__ == "__main__":
    run_bot()

How It Works:

  1. Setup: The bot connects to the Binance exchange using the ccxt library with your API key and secret.
  2. Trading Parameters:
    • symbol: The trading pair (e.g., BTC/USDT).
    • threshold_price: The price below which the bot will place a buy order.
    • amount: The amount of the asset to buy.
  3. Main Loop:
    • The bot fetches the current price of the asset.
    • If the price is below the threshold, it places a market buy order.
    • The bot then waits for a minute before checking the price again.

Important Notes:

  • API Keys: Never share your API keys publicly. Ensure that your keys have the correct permissions (e.g., trading, but not withdrawal).
  • Error Handling: This example includes basic error handling, but more robust handling may be needed for production.
  • Risk Management: This bot is extremely simple and doesn’t include any risk management strategies. In a real-world scenario, you should implement more sophisticated logic.

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