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.