Development of a trading bot on the BitMEX crypto exchange

BitMEX is one of the most reputable cryptocurrency exchanges on the market today and has been operating since 2014. During its existence, it has managed to overcome many shocks in this industry, which has allowed it to gain the trust and loyalty of millions of users around the world.

This article is intended for traders who are already trading or planning to trade on BitMEX. In it, we will tell you what trading bots are, how they help you achieve better results on this exchange, and how they are developed from a technical point of view.

Cryptocurrency bot is a tool for automating trading on crypto exchanges. He is able to independently analyze the situation on the markets, monitor quotes, create orders to buy / sell assets, and even manage risks. And most importantly, all this happens without the direct participation of the trader.

Thus, the bot gives the user the opportunity to focus on improving their trading strategies and get rid of routine tasks. In addition, the use of bots on the BitMEX exchange provides a number of other important advantages:

• Fast reaction. Changes in the cryptocurrency market are often unpredictable and, unlike humans, a bot is able to respond to them instantly. Accordingly, this has a positive effect on the performance of the trader.

• Exclusion of emotions from the trading process. The bot is not affected by emotions. His work is based solely on algorithms and cold calculation, so he will never be led by a panic due to a sharp jump in quotes.
• Management of risks. To minimize the risks associated with volatility, the bot can use pre-set strategies: stop loss, trailing stop loss and stop signals.
• Multitasking. The bot is able to perform several tasks at the same time – open and close dozens of orders per second, monitor the market, and so on. Due to this, the profitability of a trader at a short distance increases significantly.

Next, we propose to move on to the technical side of the issue. Let’s take a closer look at what technology stack can be used when creating a crypto-bot for trading on the BitMEX exchange.

There can be quite a few options here, but our team prefers to use the CCXT library. It provides public and private APIs and is capable of working with dozens of the most popular crypto exchanges, including BitMEX. This means that in the future, a trader can use the bot on CCXT to trade on other platforms as well.

The CCXT library supports several modern programming languages – Python, PHP and JavaScript (Node.js), and any of them can be used to write the backend part. Accordingly, when selecting a stack for a particular project, developers have the opportunity to choose the most optimal technology.

If we talk about the frontend part, then it can be written using any technology: standard JavaScript / HTML / CSS or reactive frameworks such as Vue.js and React.js. In the second case, the bot gets a more responsive and productive interface, since the frameworks are able to process part of the data on the client side.

In order to provide the trader with the ability to manage the bot from mobile devices and even in conditions of poor network coverage, our team can also additionally develop applications for IOS and Android. For this, the following technologies can be used:

• Native – Kotlin/Java/Swift.
• Cross-platform – Flutter framework and Dart language.

Creating a cryptocurrency bot for the BitMEX exchange is a complex process that consists of six consecutive steps. We propose to consider what work is performed on each of them:

• Collection of information. First of all, the team studies the needs of the client, his tasks and priorities, and, based on the data obtained, compiles top-level documentation.
• Prototype. This is one of the main stages during which a carefully thought-out prototype of the future bot is created.

As a rule, it includes interface warframes, a table with a description of the functionality, block diagrams of the main modules, and project mathematics. To present such a mockup to a client, our team records demo videos that allow you to understand exactly how the bot will look and work after the release.

• Design development. UI designers form the visual concept of the trading bot. It is important that it be uniform, attractive and user-friendly for end users.

• Frontend. Based on the prepared and approved design mockups, front-end developers create the client side of the product, with which traders will interact on the side of the browser and mobile application. Frontend development includes layout, creation of animations, event handlers and other interface components.
• Backend. The backend is the server part of the trading bot. It is responsible for processing, storing and providing data to the client at the request of the user. When implementing it, developers write the functional code, form the database architecture and connect the cryptocurrency exchange API. To increase the efficiency of the trading bot, our team can also implement solutions based on neural network technology.

• Testing. When the technical development is completed, you need to make sure that the bot works correctly, and its functionality is fully consistent with the initial plans. To do this, QA engineers are connected to the project, who conduct in-depth testing of the product and control the fixing of bugs.
• Technical support and development. Since the cryptocurrency industry is constantly changing, after the release of a trading bot, it is important to focus on its continuous development and improvement. To do this, we offer to connect the product to our qualified technical support.

A trading bot is not only an automation tool. It also helps the trader manage orders more efficiently, reduces the risk of human error, helps optimize the portfolio, and performs many other important functions. Therefore, investing in the development of a BitMEX trading bot is a profitable investment that can pay off in the short term.

For the development of such projects, AVADA MEDIA is ready to provide already formed teams of specialists. Thanks to the experience and deep understanding of this industry, we help traders create the most effective tools for trading in the crypto markets.