Automated BTC Trading Bot

This is a simple, open-source automated trading bot for Bitcoin (BTC), created as a project by a Computer Science major. The bot is designed to execute trades on the Binance exchange based on various technical analysis indicators.

Features

• Connects to Binance API for live trading or paper trading (testnet).
• Implements a configurable trading strategy using indicators such as SMA, RSI, MACD, and Bollinger Bands.
• Manages trades with risk control measures like stop-loss and trailing stop.
• Logs and displays trade execution details and profit tracking.

Installation

Prerequisites

• Python 3.8 or higher
• Binance account (for live trading)

Step-by-step installation

Windows

1. Download and install Python from the official Python website.
2. Clone the repository:

   git clone https://github.com/yourusername/trading-bot.git
   cd trading-bot

3. Install the required Python packages:

   pip install -r requirements.txt

macOS

1. Install Python using Homebrew:

   brew install python

2. Clone the repository:

   git clone https://github.com/yourusername/trading-bot.git
   cd trading-bot

3. Create a virtual environment and activate it:

   python3 -m venv venv
   source venv/bin/activate

4. Install the required Python packages:

   pip install -r requirements.txt

Linux (Debian/Ubuntu)

1. Install Python:

   sudo apt update
   sudo apt install python3 python3-venv python3-pip

2. Clone the repository:

   git clone https://github.com/yourusername/trading-bot.git
   cd trading-bot

3. Create a virtual environment and activate it:

   python3 -m venv venv
   source venv/bin/activate

4. Install the required Python packages:

   pip install -r requirements.txt

Configuration

.env File Setup

The bot requires a .env file for configuration, which includes API keys and trading settings. Here is an example of how to set up your .env file:

# Environment setting
ENVIRONMENT=paper

# Live environment API keys
LIVE_API_KEY=your_binance_api_key
LIVE_API_SECRET=your_binance_api_secret

# Paper environment API keys
PAPER_API_KEY=your_testnet_api_key
PAPER_API_SECRET=your_testnet_api_secret

# Trading symbol
TRADING_SYMBOL=BTCUSDT

• ENVIRONMENT: Set this to paper for testnet (paper trading) or live for real trading.
• LIVE_API_KEY / LIVE_API_SECRET: Your Binance API key and secret for live trading.
• PAPER_API_KEY / PAPER_API_SECRET: Your Binance API key and secret for paper trading (testnet).
• TRADING_SYMBOL: The trading pair symbol, e.g., BTCUSDT.

Setting Up Your Environment

1. Rename .env.example to .env.
2. Replace your_binance_api_key and your_binance_api_secret with your actual Binance API credentials.

Running the Bot

To start the trading bot, simply run the following command:

cd src/
python main.py

The bot will begin fetching market data, applying the trading strategy, and executing trades based on the signals generated.

Feedback and Contributions

This is an open-source project, and contributions are welcome! Please open issues or pull requests with any suggestions or improvements.

Feedback on Trading Strategy

The current trading strategy uses a combination of Simple Moving Averages (SMA), Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Bollinger Bands. We are particularly interested in feedback on the following:

1. Risk Management: Are there better ways to implement risk management to avoid significant losses?
2. Technical Indicators: Are there more effective indicators or configurations to improve trade accuracy?
3. Optimization: How can we optimize the execution of trades to reduce slippage and fees?

Feel free to reach out via GitHub issues or contribute directly through pull requests.