How do build a crypto trading bot and types of trading bot strategies? - PowerPoint PPT Presentation

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How do build a crypto trading bot and types of trading bot strategies?


Crypto trading bots evaluate market data and carry out trades using algorithms and pre-established regulations. Bot regularly scans the market for certain trends, signs, or signals that line up with their pre-programmed tactics. A bot can conduct transactions automatically without the need for human intervention if it recognizes a potential trading opportunity. – PowerPoint PPT presentation

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Date added: 21 July 2023
Updated: 21 July 2023
Slides: 9
Provided by: norawilsonjohn


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Title: How do build a crypto trading bot and types of trading bot strategies?


How do build a crypto trading bot and types of
trading bot strategies?
  • Introduction
  • Build a secure crypto trading bot
  • Feature of crypto trading bot
  • Crypto Trading bot strategy
  • Conclusion

  • A crypto trading bot is a program that follows a
    specified algorithm and executes transactions
    automatically. The majority of trading bots
    outperform human traders in terms of accuracy,
    speed, and complexity. Because crypto trading is
    so competitive, it pays to automate trades. Bots
    are computer programs that automate the
    completion of repetitive activities. They are
    programmed with algorithms that allow them to
    execute and fulfill orders depending on
    predefined parameters. This is also true for the
    cryptocurrency trading bot.

Build a secure crypto trading bot
Read on for a step-by-step explanation of how to
plan everything out and create your own
cryptocurrency trading bot.
Pick a Programming Language
  • When creating a crypto trading bot, developers
    use C, Javascript, and, most significantly,
    Python. Choose the programming language with
    which you are most comfortable. If none of them
    are on your list, choose the closest one to your
    preference. Python is my personal favorite
    because there are so many open-source libraries
    and scripts for trading bots available online.

Establish a Desired Bot Architecture
  • The next stage is to figure out your bot's
    architecture and trading model. You must create a
    strong mathematical model from which your bot
    will get its efficacy. You'll also need to
    program the bot so that it uses the correct data.
    Some bots may require the capacity to assess
    market inefficiencies, several data sets, and a
    few years' worth of historical pricing data.

Backtest the Bot
You must test the bot when it has been created.
The bot may not function properly or may require
optimization, which is why you should deploy it
in a test environment. You may also need to
replace your current data collection with a
better one or evaluate the performance of trading
on multiple exchanges. It's time to backtest
again when you've fixed all of the bugs. You want
to optimize your bots so that it works as well as
possible. Trading is all about lowering risk,
therefore plan on backtesting and fine-adjusting
your bots for several days before releasing them.
Collect Exchange API Keys
  • After backtesting and comparing your bot's
    performance on several exchanges, you must
    acquire API keys. Choose the best-performing
    exchange, log into your account, and locate the
    API keys to connect your bot to your trading

Feature of crypto trading bot
  • The secure features of using crypto trading bots
  • User-Friendly Interface
  • Security Measures
  • Multi-Exchange Support
  • Real-Time Data
  • Trading Strategies
  • Customizable Parameters
  • Backtesting and Optimization
  • Risk Management

Crypto Trading bot strategy
  • A cryptocurrency trading bot can do anything you
    want. You can use refined technical analysis
    tactics, force the bot to follow indicators, or
    just instruct it to buy specific assets on a
    regular basis. Investors, on the other hand,
    often employ three prominent strategies
  • Arbitrage
  • Portfolio rebalancing
  • Market making

Bots use numerous exchanges to buy and sell
crypto to find price disparities, the method can
be repeated for a long period before the
arbitrage opportunity disappears. For example,
the bot can purchase Ethereum on FTX at a price
that is 0.5 lower than the market average and
then sell it on Binance.
Portfolio rebalancing
  • Bots alter the asset allocations of a portfolio
    on a regular basis. When the value of an asset
    rises sufficiently, it becomes dominating in
    terms of dollars. This devastates your original
    allocations, which should have been balanced.
    Bots will rebalance your portfolio by selling the
    asset with the highest return.

Market Making
Bots profit from order book discrepancies. They
trade the spread and supply liquidity to both
market sides. Market making is similar to
arbitrage trading on a smaller scale. However,
this method remains popular since it delivers
substantial gains when traded in large volumes.
  • Crypto trading bots can be a valuable tool for
    cryptocurrency traders looking to automate and
    improve their trading performance. These bots can
    assess market trends and execute trades swiftly,
    potentially resulting in huge gains, by employing
    powerful algorithms and machine learning. Fire
    Bee Techno Services is a worldwide Crypto Trading
    Bot Development Company. We offer the best
    high-rich crypto trading bot services. If you are
    interested in creating your own crypto bot
    contact us.
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