Development of a trading bot for trading on the EXMO crypto exchange

The EXMO cryptocurrency exchange was founded in 2014 and is primarily focused on the Eastern European market. Today, it provides traders with more than 150 trading pairs and the ability to work with fiat currencies, and the average daily trading volume on the platform reaches $100 million.

In this article, we will tell you how to increase the profitability and efficiency of trading on EXMO using trading bots, tell you about the advantages of such a tool and how to implement it in your work.

A trading bot is a special software that connects to the terminal of the cryptocurrency platform and independently performs the tasks necessary for the trader. It can monitor the market and quotes, predict the profitability of investments, open and close deals, and much more.

In fact, such a bot is a digital copy of the logic of the trader himself and is used to automate the work with the markets.

There are two main types of bots:

• Signal bots. Their task is to continuously monitor the market and give the trader recommendations on opening and closing orders. They can also calculate risks, the optimal lot size and other nuances.
• Automatic bots. As the name suggests, these bots work completely autonomously. They analyze the market in the same way, perform calculations on their own, and also open and close transactions without the participation of a trader. In this case, the user can only manage the algorithms and improve their strategies.

The main advantage of using bots is automation. A trader cannot trade manually for a long time due to physical and emotional fatigue. At the same time, the bot is able to work around the clock with the same efficiency. What’s more, that’s what it’s made for.

Other benefits of trading bots include:

• Speed ​​reaction. When trading crypto, it is very important to quickly respond to changes in the market situation, especially when it comes to scalping and day trading. A bot is a software script, so the speed of its reaction is incomparable with a human one. Accordingly, with proper settings, it will be able to close much more profitable trades.

• Multitasking. The bot can perform multiple tasks at the same time and work with multiple assets at once.
• Lack of emotion. The influence of emotions often becomes the main reason for the loss of a deposit. Fear of mistakes, the desire to recoup or collect more profit after previous successes – all this is characteristic of a person, but not a bot, which is guided by strictly verified algorithms and cold calculation.
• Management of risks. The bot can be embedded with risk management strategies, thanks to which the chance of losing a deposit is reduced to almost zero.

Now we propose to move on to the technical part, and first of all, let’s talk about the technologies that are used to develop trading bots.

Our team uses the CCXT library as the basis of the stack. This is a tool designed specifically for the development of crypto bots. It supports work with dozens of different exchanges, including EXMO, provides a public and private API, and also makes it possible to use different programming languages.

In addition to the CCXT library, the following can be involved in the development of a crypto bot:

• Backend: programming languages PHP/Python/JavaScript (Node.js).

• Frontend: Standard JavaScript/HTML/CSS technologies or Vue.js/React.js reactive frameworks.
• Mobile development: Kotlin/Java/Swift for native IOS and Android development, or Flutter/Dart for cross-platform development.

The choice of stack affects the performance, security, compatibility, and development speed of a trading bot. Therefore, when choosing technologies, our team takes into account the technical features of the project and the priorities of the customer.

The development of a cryptocurrency bot consists of six consecutive stages, which are performed according to the iterative Scrum methodology. Let’s consider them in more detail:

• Collection of information. When starting work on a project, our team studies the requirements, wishes and vision of the client, and on the basis of these data draws up top-level documentation.
• Prototype. The task of this stage is to create a prototype of a trading bot that will allow you to understand how the product will look and work even before the start of its technical implementation.

As a rule, such a mockup includes: rough sketches of the interface, block diagrams of the main modules, a table describing the functionality and project mathematics.

• Design development. Designers select the UI concept of a cryptocurrency bot and draw its visual environment. The main priority of this stage is to create an attractive and convenient interface for traders.

• Frontend. When the design is ready, front-end developers create the client side of the trading bot, with which users will interact on the browser side. Frontend development includes layout, creation of animations, graphs, tables and other interface components.
• Backend. In fact, the backend is the processing center of the trading bot responsible for storing, processing and providing data to the client. During its development, specialists design the database structure, connect the API, build the client-server architecture and write the functional code. This is the most time-consuming and time-consuming part of the bot production.

• Testing. When the development is completed, QA engineers join the project and conduct several levels of testing the bot. This allows you to make sure that it works correctly and does not contain errors.
• Technical support and development. The cryptocurrency industry is developing very rapidly, and in order for the trading bot to always meet the current market requirements, after the release, it is important for developers to focus on its continuous development. To do this, we propose to connect the project to our professional technical support.

Today on the market there are quite a few options for ready-made bots that are distributed according to the SaaS model. On the one hand, they are more accessible, but on the other hand, they do not guarantee a positive result and profit. Therefore, developing your own bot with qualified specialists is always preferable.

For the implementation of such projects, AVADA MEDIA is ready to provide already formed teams of developers with relevant experience and expertise. They will help you create a bot with the most detailed and customizable algorithms that will really increase your performance.