Building an Automated Crypto Trading Bot: My Week-long Experiment

TLDRIn this video, I challenge myself to create a crypto trading bot and see how much money I can make in a week. I explain the basic concept of trend following and show the progress of my bot over five days. Despite my limited knowledge, the bot performs surprisingly well, gaining 1.7% in five days. However, I caution viewers not to rely on my code or advice without further research.

Key insights

💰I challenge myself to build an automated crypto trading bot and document the results.

📈The basic concept behind my trading strategy is trend following, where I analyze average crypto prices to determine buying or selling opportunities.

👨‍💻Although I have a basic understanding of programming, I caution viewers that I am not an expert in trading or bot development.

⚠️While my bot performed well during this experiment, I acknowledge that it could have been influenced by market fluctuations or luck.

📊My bot gained 1.7% in five days, but I emphasize that this should not be seen as a guarantee of future success.

Q&A

Can I use your code to build my own trading bot?

—I would not recommend using my code if you are not experienced in trading or bot development. It is important to conduct thorough research and consult professionals before attempting to build your own trading bot.

What crypto exchange did you use for your bot?

—I used Kraken for this experiment, but there are many other crypto exchanges available. It is essential to choose a reputable exchange that offers the necessary API for trading.

Did you make any mistakes during the building process?

—Fortunately, I did not encounter any major mistakes during the development of my bot. However, I attribute this to luck and caution viewers that mistakes can easily occur when working with complex systems like trading bots.

Should I invest in cryptocurrencies based on your results?

—My results should not be considered as financial advice. Investing in cryptocurrencies carries risks, and it is crucial to conduct proper research and consult with experts before making any investment decisions.

Do you plan to continue testing and improving your bot?

—Yes, I am considering further testing and improvements to my bot. However, I will continue to approach this as an experiment and not rely solely on automated trading for financial gains.

Timestamped Summary

00:01Introduction to the challenge of building an automated crypto trading bot.

01:04Explanation of the basic concept of trend following in trading.

03:00Building the trading bot and connecting to the Kraken API.

04:49Initial test of the bot and the performance on the first day.

07:35Reviewing the overall performance of the bot over five days.

09:04Sharing the code for the bot and cautioning viewers about its use.

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