Creating a Crypto Trading Bot with Deepsik

Complete guide to building an automated trading system in Python using cryptocurrency exchange APIs

Important Security and Risk Warning

Automated trading involves significant risks:

Step-by-Step Guide

1 Preparation and Learning Basics

Required Knowledge:

  • Python: Basic syntax, variables, functions, loops
  • REST API and WebSockets: Basics of exchange communication
  • Cryptocurrency Exchanges: Registration, order types, fees

Development Environment Setup:

  1. Install Python (latest stable version)
  2. Install a development environment (VS Code recommended)
  3. Create a project folder

Installing Required Libraries:

# Open terminal/command prompt and run:
pip install python-binance
pip install pandas
pip install numpy
pip install ta

2 Getting API Keys from Exchange

Using Binance as an example:

  1. Log into your Binance account
  2. Navigate to API Management section
  3. Create a new API key
  4. IMPORTANT: Uncheck "Enable Withdrawals" permission
  5. Keep only "Enable Reading" and "Enable Spot & Margin Trading"
  6. Save API Key and Secret Key in a secure location
# Create config.py file for secure key storage:
# config.py
API_KEY = 'YOUR_API_KEY_HERE'
API_SECRET = 'YOUR_API_SECRET_HERE'

3 Writing Bot Code

Create crypto_bot.py file and add the following code:

# Import libraries and API client setup
import pandas as pd
from binance.client import Client
from binance.enums import *
import time
import config

# Initialize Binance API client
client = Client(config.API_KEY, config.API_SECRET)

# Trading parameters
TRADE_SYMBOL = 'BTCUSDT'
TRADE_QUANTITY = 0.001
PROFIT_TARGET = 1.0
STOP_LOSS = 2.0

# Position tracking variables
in_position = False
buy_price = 0.0

# Function to get current price
def get_price(symbol):
    try:
        ticker = client.get_symbol_ticker(symbol=symbol)
        return float(ticker['price'])
    except Exception as e:
        print(f"Error getting price: {e}")
        return None

# Function to place orders
def create_order(symbol, side, quantity):
    try:
        current_price = get_price(symbol)
        if not current_price:
            return None

        if side == SIDE_BUY:
            price = round(current_price * 0.995, 2)
        elif side == SIDE_SELL:
            price = round(current_price * 1.005, 2)
        else:
            return None

        order = client.create_order(
            symbol=symbol,
            side=side,
            type=ORDER_TYPE_LIMIT,
            timeInForce=TIME_IN_FORCE_GTC,
            quantity=quantity,
            price=str(price)
        )
        print(f"Order placed: {side} {quantity} {symbol} at price {price}")
        return order
    except Exception as e:
        print(f"Error placing order: {e}")
        return None

This is the basic bot structure. The complete code with trading strategy and main loop is available in the full guide.

4 Testing and Launch

Paper Trading Testing:

  1. Run the bot with: python crypto_bot.py
  2. Monitor the console logic - the bot will show what actions it would take
  3. Ensure its decisions match your expectations

Real API Testing (without real trades):

  1. Use Binance Testnet
  2. Register at testnet.binance.vision
  3. Get test API keys and add them to config.py
  4. Test all functions without risk of losing funds

Launching with Real Money:

  1. Only after successful testing!
  2. Replace test keys with real ones
  3. Start with a very small amount
  4. Constantly monitor the bot's performance, especially during high volatility

How to Use Deepsik in This Process

Deepsik (or any AI assistant) can help at different stages:

Conclusion

Creating an automated trading bot is a complex but fascinating process that requires knowledge in programming, finance, and risk management. Start small, test extensively, and never invest more in automation than you're willing to lose.

Remember that successful automated trading requires continuous learning, adaptation, and monitoring.