Automated cryptocurrency trading bot
This project was inspired by the observation that all cryptocurrencies pretty much behave in the same way. When one spikes, they all spike, and when one takes a dive, they all do. Pretty much. Moreover, all coins follow Bitcoin's lead; the difference is their phase offset.
So, if coins are basically oscillating with respect to each other, it seems smart to trade the rising coin for the falling coin, and then trade back when the ratio is reversed.
The trading is done in the Binance market platform, which of course, does not have markets for every altcoin pair. The workaround for this is to use a bridge currency that will complement missing pairs. The default bridge currency is Tether (USDT), which is stable by design and compatible with nearly every coin on the platform.
Coin A → USDT → Coin B
The way the bot takes advantage of the observed behaviour is to always downgrade from the "strong" coin to the "weak" coin, under the assumption that at some point the tables will turn. It will then return to the original coin, ultimately holding more of it than it did originally. This is done while taking into consideration the trading fees.
Coin A → USDT → Coin B
Coin B → USDT → Coin C
...
Coin C → USDT → Coin A
The bot jumps between a configured set of coins on the condition that it does not return to a coin unless it is profitable in respect to the amount held last. This means that we will never end up having less of a certain coin. The risk is that one of the coins may freefall relative to the others all of a sudden, attracting our reverse greedy algorithm.
- Create a Binance account (Includes my referral link, I'll be super grateful if you use it).
- Enable Two-factor Authentication.
- Create a new API key and whitelist your IP for it.
- Get a cryptocurrency. If its symbol is not in the default list, add it.
Currently Python 3.7 is the minimum required version.
Run the following line in the terminal: pip install -r requirements.txt.
Create a .cfg file named user.cfg based off .user.cfg.example, then add your API keys and current coin.
The configuration file consists of the following fields:
- api_key - Binance API key generated in the Binance account setup stage.
- api_secret_key - Binance secret key generated in the Binance account setup stage.
- current_coin - This is your starting coin of choice. This should be one of the coins from your supported coin list. If you want to start from your bridge currency, leave this field empty - the bot will select a random coin from your supported coin list and buy it.
- bridge - Your bridge currency of choice. Notice that different bridges will allow different sets of supported coins. For example, there may be a Binance particular-coin/USDT pair but no particular-coin/BUSD pair.
- tld - 'com' or 'us', depending on your region. Default is 'com'.
- hourToKeepScoutHistory - Controls how many hours of scouting values are kept in the database. After the amount of time specified has passed, the information will be deleted.
- use_margin - 'yes' to use scout_margin. 'no' to use scout_multiplier.
- scout_multiplier - Controls the value by which the difference between the current state of coin ratios and previous state of ratios is multiplied. For bigger values, the bot will wait for bigger margins to arrive before making a trade.
- scout_margin - Minimum percentage coin gain per trade. 0.8 translates to a scout multiplier of 5 at 0.1% fee.
- trade_fee - Controls trade fee for calculating profitable jumps. By default it doesn't have value: gets values through the binance api calls. Otherwise use float values for the fee. Binance fee table for reference
- strategy - The trading strategy to use. See
binance_trade_bot/strategiesfor more information - enable_paper_trading - (
TrueorFalsedefaultFalse) run bot with virtual wallet to check its performance without risking any money. - buy_timeout/sell_timeout - Controls how many minutes to wait before cancelling a limit order (buy/sell) and returning to "scout" mode. 0 means that the order will never be cancelled prematurely.
- scout_sleep_time - Controls how many seconds bot should wait between analysis of current prices. Since the bot now operates on websockets this value should be set to something low (like 1), the reasons to set it above 1 are when you observe high CPU usage by bot or you got api errors about requests weight limit.
- buy_order_type - Controls the type of placed buy orders, types available: market, limit (default=limit)
- sell_order_type - Controls the type of placed sell orders, types available: market, limit (default=market)
- buy_max_price_change/sell_max_price_change - Controls how much price change in decimal percentage is accepted between calculation of ratios and trading.
- price_type - Controls the type of prices used by the bot, types available: orderbook, ticker (default=orderbook). Please note that using the orderbook prices increase the CPU usage.
- accept_losses - Needs to be set to true for highly risky and gamling strategies. Otherwise the bot wont start.
- auto_adjust_bnb_balance - Controls the bot to auto buy BNB while there is no enough BNB balance in your account, to get the benifits of using BNB to pay the commisions. Default is false. Effective if you have enabled to use BNB to pay for any fees on the Binance platform, reade more information here.
- auto_adjust_bnb_balance_rate - The multiplying power of buying quantity of BNB compares to evaluated comission of the coming order, effective only if auto_adjust_bnb_balance is true. Default value is 3.
- allow_coin_merge - Allow multiple_coins strategy to merge coins into one. It turned out that its more profitable if the strategy can merge the held coins into one. If you dont want this you may be safer for one falling coin but you also pay with potential gains. Default is true to ensure the behavior is like in the origin repo.
All of the options provided in user.cfg can also be configured using environment variables.
CURRENT_COIN_SYMBOL:
SUPPORTED_COIN_LIST: "XLM TRX ICX EOS IOTA ONT QTUM ETC ADA XMR DASH NEO ATOM DOGE VET BAT OMG BTT"
BRIDGE_SYMBOL: USDT
API_KEY: vmPUZE6mv9SD5VNHk4HlWFsOr6aKE2zvsw0MuIgwCIPy6utIco14y7Ju91duEh8A
API_SECRET_KEY: NhqPtmdSJYdKjVHjA7PZj4Mge3R5YNiP1e3UZjInClVN65XAbvqqM6A7H5fATj0j
SCOUT_MULTIPLIER: 5
USE_MARGIN : no
SCOUT_MARGIN : 0.8
SCOUT_SLEEP_TIME: 1
TLD: com
STRATEGY: default
BUY_TIMEOUT: 0
SELL_TIMEOUT: 0
BUY_ORDER_TYPE: limit
SELL_ORDER_TYPE: market
AUTO_ADJUST_BNB_BALANCE: false
AUTO_ADJUST_BNB_BALANCE_RATE: 3
ALLOW_COIN_MERGE: true
You can use BNB to pay for any fees on the Binance platform, which will reduce all fees by 25%. In order to support this benefit, the bot will always perform the following operations:
- Automatically detect that you have BNB fee payment enabled.
- Make sure that you have enough BNB in your account to pay the fee of the inspected trade.
- Take into consideration the discount when calculating the trade threshold.
Apprise allows the bot to send notifications to all of the most popular notification services available such as: Telegram, Discord, Slack, Amazon SNS, Gotify, etc.
To set this up you need to create a apprise.yml file in the config directory.
There is an example version of this file to get you started.
If you are interested in running a Telegram bot, more information can be found at Telegram's official documentation.
python -m binance_trade_botPlease remember that this is a fork. To maintain the security of your API key it relies on local builds.
- Clone this git to a location of your choice:
git clone https://github.com/tntwist/binance-trade-bot tntwist-binance-trade-bot - Change to the directory:
cd tntwist-binance-trade-bot - Build the container locally (this may take a few minutes depending on your hardware):
docker build . -t tntwist-binance-trade-bot - Follow the steps in Create user configuration to ensure you have created a
user.cfgfile in the directory created in step 2. If you have already done this, continue to step 5. - Run docker-compose up
docker-compose up
To update, repeat steps 1 through 5. These commands can also be added to a shell script to automate the process.
docker-compose up -d sqlitebrowserYou can test the bot on historic data to see how it performs.
python backtest.pyFeel free to modify that file to test and compare different settings and time periods
You can warmup your database with coins wich you might want to add later to your supported coin list. This should prevent uncontrolled jumps when you add a new coin to your supported coin list.
After the execution you should wait one or two trades of the bot before adding any new coin to your list.
By running the script without parameters, it will warm up the bots default database with all available coins for the bridge.
python3 database_warmup.pyIf you want to specify a separate db file you can use the -d or --dbfile parameter. If not provided, the script will use the bots default db file.
python3 database_warmup.py -d data/warmup.dbYou can also specify the coins you want to warmup with the -c or --coinlist parameter. If not provided the script will warmup all coins available for the bridge.
python3 database_warmup.py -c 'ADA BTC ETH LTC'To make sure your code is properly formatted before making a pull request, remember to install pre-commit:
pip install pre-commit
pre-commit installThe scouting algorithm is unlikely to be changed. If you'd like to contribute an alternative method, add a new strategy.
Thanks to a group of talented developers, there is now a Telegram bot for remotely managing this project.
Fist of all, support the originator of this bot and buy him a coffee. ☕
If you like my adjustments and you want to support me I would appreciate to get a coffee too. 😜
- Discord: Invite Link
A list of answers to what seem to be the most frequently asked questions can be found in our discord server, in the corresponding channel.
This project is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained here constitutes a solicitation, recommendation, endorsement, or offer by me or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.
If you plan to use real money, USE AT YOUR OWN RISK.
Under no circumstances will I be held responsible or liable in any way for any claims, damages, losses, expenses, costs, or liabilities whatsoever, including, without limitation, any direct or indirect damages for loss of profits.