Technical Trader

An automated trading bot that uses technical analysis to execute trades on the NEAR blockchain using the Ref Finance DEX.

Overview

The bot combines several components to make trading decisions:

• Cloudflare D1 (SQLite) for storing historical market data
• Technical indicators from TAAPI
• REF Finance DEX for executing trades
• Cloudflare Workers for serverless deployment
• Cloudflare KV for state management

How it Works

1. Data Collection (Every 5 minutes)

   • Gets technical indicators from TAAPI (VWAP, ATR, Bollinger Bands, RSI, OBV)
   • Stores everything in Cloudflare D1

2. Trading Strategy The bot uses a comprehensive technical analysis approach:

   Technical Analysis Signal:

   • Calculates a score based on multiple indicators:
     • VWAP crossovers and divergence
     • Bollinger Bands breakouts
     • RSI oversold/overbought levels
     • OBV momentum and divergence
   • Uses dynamic scoring based on market conditions
   • Implements partial position sizing based on signal strength

   Position Management:

   • Uses multiple entry and exit points based on signal strength
   • Implements stop loss and take profit thresholds
   • Uses REF Finance Smart Router API for best swap prices
   • Supports partial positions with independent tracking
   • Time decay to gradually reduce position scores
   • Profit-taking score to encourage closing profitable trades

3. Position Tracking

   • Paper trading with simulated USDC balance
   • Tracks PnL, win rate, and other statistics
   • Uses actual DEX prices for realistic simulation
   • State stored in Cloudflare KV

Configuration

The main configuration is in config.ts:

// Trading configuration
export const TRADING_CONFIG = {
    // Position thresholds
    STOP_LOSS_THRESHOLD: -0.02,     // -2% stop loss
    TAKE_PROFIT_THRESHOLD: 0.03,    // +3% take profit
    INITIAL_BALANCE: 1000,          // Starting USDC balance

    // Technical Analysis Multipliers
    VWAP_MULTIPLIER: 0.4,          // Base VWAP signal weight
    VWAP_EXTRA_MULTIPLIER: 0.6,    // Additional VWAP signal weight
    BBANDS_MULTIPLIER: 1.5,        // Bollinger Bands weight
    RSI_MULTIPLIER: 2.0,           // RSI weight
    OBV_DIVERGENCE_MULTIPLIER: 0.8, // OBV divergence weight
    PROFIT_SCORE_MULTIPLIER: 0.75,  // Profit-taking weight
    TIME_DECAY_MULTIPLIER: 0.0001,  // Time decay weight per minute

    // Technical Analysis Parameters
    VWAP_THRESHOLD: 0.01,          // 1% threshold for VWAP signals
    OBV_WINDOW_SIZE: 12,           // 1 hour window for OBV analysis
    SLOPE_THRESHOLD: 0.0001,       // Minimum slope for divergence detection

    // Partial Position Thresholds
    PARTIAL_POSITION_THRESHOLDS: [
        { buy: 2, sell: -0.5 },    // First partial
        { buy: 4, sell: 0.5 },     // Second partial
        { buy: 6, sell: 1.5 }      // Third partial
    ]
}

Setup

1. Environment Variables:

NODE_URL=<NEAR RPC URL>
TAAPI_SECRET=<TAAPI API Key>

2. Database:

• Uses Cloudflare D1 (SQLite) for market data
• Uses Cloudflare KV for positions and state
• Schema includes tables for market data and indicators

3. Deploy:

yarn install
wrangler d1 create ai-trader-db
wrangler kv:namespace create ai-trader-kv
wrangler deploy

API Endpoints

• /history/:symbol - Get historical market data
• /latest/:symbol - Get latest market data
• /position/:symbol - Get current position
• /stats/:symbol - Get trading statistics
• /portfolio - Get overall portfolio status

Monitoring

The bot logs detailed information about:

• Data collection status
• Technical analysis scores
• Trade decisions and reasoning
• Position updates and PnL
• Error conditions and recovery

Supported Markets

Currently supports multiple trading pairs on REF Finance:

• NEAR/USDT
• SOL/USDT
• BTC/USDT
• ETH/USDT

Features:

• Real-time price data via TAAPI
• Smart Router API for best swap prices
• Position tracking with partial positions
• PnL and statistics tracking

Development

To run locally:

1. Clone the repository
2. Install dependencies: yarn install
3. Set up environment variables
4. Create local D1 database: wrangler d1 create ai-trader-db --local
5. Start local development: yarn dev

Architecture Notes

• Uses TAAPI for reliable technical indicators
• Trading decisions use current market price for signals but actual DEX prices for execution
• All state is maintained in Cloudflare KV for serverless operation
• Uses REF Finance Smart Router API for best prices
• Supports multiple partial positions with independent tracking
• Implements time decay and profit-taking mechanics

Contributing

Feel free to submit issues and pull requests for:

• New trading strategies
• Additional technical indicators
• Market support
• Performance improvements
• Documentation updates