Trading and portfolio code

Developing a trading algorithm for cryptocurrency can be both enjoyable and informative. Unlike traditional finance, there is a sense of freedom in developing these codes, as you are not constrained by the formalities and bureaucracy of traditional financial institutions. Moreover, even non-finance professionals can learn how the trading process works.

Recently, I experimented with some automated tools that connect Binance with TradingView, during the steep increase of cryptocurrency values in 2021-2022. It was fascinating to see the results of different strategies, as we gained and lost profits. However, I now aim to develop my own code, possibly using Python due to its extensive libraries and integrated tools.

For the trading platform, I’m considering Derebit, as it allows for a more streamlined trading experience, without the need for traditional currency. Although its API seems well-developed, I’m still unsure if there are enough transactions on it to enable a smooth trading process.

Python’s flexibility allows for the creation of more customized solutions and a wider range of algorithmic strategies. With numerous libraries available and countless algorithms at your disposal, there is an abundance of tools to explore. Furthermore, I’m excited about integrating a portfolio and wallet management system, which can provide a more comprehensive trading experience.

In the development stage, testing the algorithm is crucial, and I plan to test it on a testnet before moving on to real-time trading. To enhance my algorithm’s efficacy, I’m considering using ChatGPT to propose some algorithms and for testing. Overall, creating a trading algorithm is both an exciting and informative process, especially when working with cryptocurrency.

Right now, we focus on Deribit because it is the lighter in terms of formal registration with lengthy video-validation of Binance and other similar platforms. Deribit seems well done with good background information. Of course, the limitation is that you work purely in cryptocurrencies (BTC or ETH). The approach is very instructive to learn options and futures in more detail. Of course, ChatGPT is already able to output a meaningful to quickly establish a trading code. Let’s how we can develop on that.