crypto_bot_training/trading_bot

🤖 Binance Trading Bot

Advanced automated cryptocurrency trading bot for Binance exchange with real-time WebSocket connectivity, technical indicators, and comprehensive risk management.

🚀 Features

Core Trading Features

• Real-time Data: WebSocket connection to Binance for live market data
• Technical Indicators: Bollinger Bands, Moving Averages (SMA/EMA), RSI, MACD
• Multiple Strategies: Bollinger Bands + MA, Mean Reversion, MA Crossover
• Automated Execution: Buy/sell orders with configurable position sizing
• Paper Trading: Safe testing mode without real money

Risk Management

• Stop-Loss & Take-Profit: Configurable risk/reward ratios
• Position Sizing: Dynamic position sizing based on risk parameters
• Daily Loss Limits: Automatic trading halt on daily loss thresholds
• Maximum Drawdown Protection: Portfolio-level risk controls
• Emergency Stop: Manual and automatic trading halt capabilities

Monitoring & Analytics

• Performance Tracking: Comprehensive trade and portfolio analytics
• Real-time Logging: Structured logging with multiple log levels
• Health Monitoring: WebSocket connection health and reconnection logic
• Trade History: Persistent storage of all trading activities

Deployment & Operations

• Docker Support: Containerized deployment with docker-compose
• Environment Configuration: Flexible configuration via environment variables
• Database Integration: SQLite and PostgreSQL support
• Optional Monitoring: Prometheus and Grafana integration

📋 Prerequisites

• Docker and Docker Compose (recommended)
• OR Python 3.11+ with pip
• Binance account with API keys
• Basic understanding of cryptocurrency trading

🛠️ Quick Setup (Docker - Recommended)

1. Clone and Setup

git clone <repository-url>
cd trading_bot

# Copy and configure environment file
cp env_example .env
nano .env  # Edit with your configuration

2. Configure Environment

Edit .env file with your settings:

# Essential Settings
BINANCE_API_KEY=your_api_key_here
BINANCE_SECRET_KEY=your_secret_key_here
BINANCE_TESTNET=true  # Start with testnet!

# Trading Configuration
TRADING_SYMBOL=BTCUSDT
POSITION_SIZE=0.001
PAPER_TRADING=true  # Keep this true for testing!
ENABLE_TRADING=false  # Set to true only when ready

# Risk Management
STOP_LOSS_PERCENT=2.0
TAKE_PROFIT_PERCENT=3.0
MAX_DAILY_LOSS=5.0

3. Start the Bot

# Start in paper trading mode
docker-compose up -d

# View logs
docker-compose logs -f trading-bot

# Stop the bot
docker-compose down

🐍 Manual Setup (Python)

1. Setup Python Environment with pyenv

Install pyenv (if not already installed)

On Linux/macOS:

# Install pyenv
curl https://pyenv.run | bash

# Add to your shell profile (~/.bashrc, ~/.zshrc, etc.)
export PYENV_ROOT="$HOME/.pyenv"
export PATH="$PYENV_ROOT/bin:$PATH"
eval "$(pyenv init -)"
eval "$(pyenv virtualenv-init -)"

# Reload your shell
source ~/.bashrc  # or ~/.zshrc

On Windows:

# Install pyenv-win using git
git clone https://github.com/pyenv-win/pyenv-win.git %USERPROFILE%\.pyenv

# Add to your PATH (in PowerShell)
$env:PYENV = "$env:USERPROFILE\.pyenv\pyenv-win"
$env:PATH = "$env:PYENV\bin;$env:PYENV\shims;$env:PATH"

# Or set permanently in system environment variables

Install and Configure Python

# Install Python 3.11 (recommended)
pyenv install 3.11.0

# Create virtual environment for the trading bot
pyenv virtualenv 3.11.0 trading-bot-env

# Activate the environment
pyenv activate trading-bot-env

# OR set it as local environment for this directory
pyenv local trading-bot-env

2. Install Dependencies

# Make sure you're in the trading bot environment
pyenv activate trading-bot-env  # if not already activated

# Install required packages
pip install -r requirements.txt

3. Configure Environment

cp env_example .env
# Edit .env with your configuration

4. Run the Bot

# Ensure environment is activated
pyenv activate trading-bot-env

# Run the trading bot
python main.py

5. Deactivate Environment (when done)

pyenv deactivate

📊 Configuration Guide

Trading Strategies

1. Bollinger Bands + Moving Average (Default)

STRATEGY=BOLLINGER_MA
BOLLINGER_PERIOD=20
BOLLINGER_STD=2.0
MA_PERIOD=50

• Buys when price touches lower Bollinger Band and is above MA
• Sells when price touches upper Bollinger Band and is below MA

2. Bollinger Bands Only

STRATEGY=BOLLINGER_ONLY

• Pure mean reversion strategy
• Buys at lower band, sells at upper band

3. Moving Average Crossover

STRATEGY=MA_CROSSOVER

• Buys on golden cross (fast MA crosses above slow MA)
• Sells on death cross (fast MA crosses below slow MA)

4. Mean Reversion

STRATEGY=MEAN_REVERSION

• Combines MA, RSI, and price distance from mean
• Buys oversold conditions, sells overbought conditions

Risk Management Configuration

# Position Sizing
POSITION_SIZE=0.001          # Size per trade
MAX_POSITIONS=1              # Maximum concurrent positions

# Risk Limits
STOP_LOSS_PERCENT=2.0        # 2% stop loss
TAKE_PROFIT_PERCENT=3.0      # 3% take profit
MAX_DAILY_LOSS=5.0           # 5% daily loss limit
MAX_PORTFOLIO_RISK=10.0      # 10% max portfolio exposure

🔧 Advanced Configuration

WebSocket Settings

WS_RECONNECT_DELAY=5         # Reconnection delay in seconds
WS_PING_INTERVAL=20          # Ping interval for connection health
WS_TIMEOUT=30                # WebSocket timeout

Logging Configuration

LOG_LEVEL=INFO               # DEBUG, INFO, WARNING, ERROR, CRITICAL
LOG_FILE=logs/trading_bot.log
LOG_MAX_SIZE=10485760        # 10MB log rotation
LOG_BACKUP_COUNT=5           # Keep 5 backup files

Database Options

# SQLite (default)
DATABASE_URL=sqlite:///data/trading_bot.db

# PostgreSQL (advanced)
DATABASE_URL=postgresql://user:password@localhost:5432/trading_bot

📈 Monitoring

Health Checks

• WebSocket connection status
• Order execution monitoring
• Risk limit monitoring
• Performance tracking

Log Analysis

# View real-time logs
docker-compose logs -f trading-bot

# Search for specific events
docker-compose logs trading-bot | grep "SIGNAL"
docker-compose logs trading-bot | grep "TRADE"
docker-compose logs trading-bot | grep "ERROR"

Performance Metrics

The bot tracks:

• Total trades and win rate
• PnL and portfolio value
• Risk metrics and drawdown
• Trade execution statistics

🚨 Safety Guidelines

Before Live Trading

1. Test Extensively: Use paper trading for weeks/months
2. Verify Strategy: Backtest your strategy on historical data
3. Start Small: Begin with minimal position sizes
4. Monitor Closely: Watch the bot's behavior carefully
5. Have Exit Plan: Know how to stop the bot quickly

API Key Security

1. Read-Only Testing: Start with read-only API keys
2. IP Restrictions: Restrict API keys to your IP address
3. No Withdrawals: Never enable withdrawal permissions
4. Regular Rotation: Rotate API keys regularly

Risk Management

1. Daily Limits: Set and respect daily loss limits
2. Position Sizing: Never risk more than you can afford to lose
3. Stop Losses: Always use stop-loss orders
4. Diversification: Don't put all funds in one strategy

🐛 Troubleshooting

Common Issues

WebSocket Connection Problems

# Check network connectivity
docker-compose logs trading-bot | grep "WebSocket"

# Restart WebSocket connection
docker-compose restart trading-bot

API Permission Errors

# Verify API key permissions
# Ensure API key has spot trading enabled (if not paper trading)
# Check IP restrictions

High Memory Usage

# Check container resources
docker stats trading-bot

# Adjust log levels
LOG_LEVEL=WARNING  # In .env file

Log Levels

• DEBUG: Detailed technical information
• INFO: General operational information
• WARNING: Important warnings and issues
• ERROR: Error conditions that need attention
• CRITICAL: Critical errors requiring immediate action

📝 Contributing

1. Fork the repository
2. Create a feature branch
3. Make your changes
4. Add tests if applicable
5. Submit a pull request

🔗 Related Projects

• CCXT - Cryptocurrency trading library
• pandas-ta - Technical analysis indicators
• Binance API - Official Binance API documentation

📄 License

This project is for educational purposes only. Use at your own risk.

🆘 Support

For questions and support:

1. Check the troubleshooting section
2. Review the logs for error messages
3. Ensure your configuration is correct
4. Test with paper trading first

⚠️ Final Warning

Cryptocurrency trading is extremely risky. This bot is provided as-is for educational purposes. The developers are not responsible for any financial losses. Always trade responsibly and never invest more than you can afford to lose.