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

Cryptocurrency trading is associated with many routine processes. To get the maximum profit, traders have to constantly monitor the market, open dozens of orders and follow the changes in quotes. And given the high volatility of the market, doing it manually is quite difficult, and sometimes even impossible.

Therefore, most private traders and companies use automation tools in their work – trading bots.

In simple words, such a bot connects to the terminal of a cryptocurrency exchange and, using intelligent systems, implements the trading strategy embedded in it. At the same time, the trader himself may practically not participate in this process. Its task is to correct and tune algorithms to increase profits.

In this article, we will look at how the use of a trading bot can change the work of a trader on the largest cryptocurrency exchange Binance, and how the development process of such software goes.

Using a trading bot provides a trader with many benefits. Here are the main ones:

• Automation – a trader will be able to devote more time to improving their strategies to increase profits, instead of solving routine tasks.
• Lack of emotions – unlike a human, a bot is not impulsive and does not give in to panic. He uses cold calculation to achieve the best financial results.

• Fast and accurate response to market conditions. Bot algorithms work instantly, thanks to which a trader can successfully earn on long and short positions.
• Risk Mitigation – Stop Loss, Trailing Stop Loss, and Stop Signals strategies can be incorporated into the bot to significantly mitigate risk.
• 24/7 trading — the bot works around the clock, without breaks and weekends, thanks to which the trader is guaranteed not to miss profitable deals.

Trading bots for Binance can be developed using different technologies, but our team prefers to use CCXT. Supporting over 120 different exchanges, it is a popular library that provides instant access to market data and allows traders to build more efficient and profitable trading strategies.

CCXT provides two types of APIs, private and public, and supports the most popular programming languages: Python, PHP, and JavaScript (Node.js). That is, the same technologies can be used to write the back-end part of a trading bot.

Standard JavaScript / HTML / CSS technologies are perfect for implementing the client side. However, to improve the performance of the bot, it is better to use the reactive frameworks Vue.js and React.js. They are able to process part of the data on their own, even before sending it to the server, due to which the responsiveness of the interface also increases significantly.

Also, our team can develop a mobile application that will allow the trader to manage the bot “on the go” and trade anywhere. Accordingly, native technologies will be used for the technical execution of such a product: Kotlin for Android and Swift for IOS, or the Flutter cross-platform framework and the Dart language.

The life cycle of a trading bot consists of six main stages, which are carried out according to the iterative Scrum methodology. Let us consider in more detail what kind of work is performed on each of them.

Stage 1. Gathering information

First of all, developers need to determine exactly what tasks the bot should perform and, accordingly, what functionality will be required for this. Therefore, software development always begins with a discussion of the details of the project.

Stage 2. Design

When all the necessary information is collected, the team starts designing the bot. At this stage, a carefully thought-out prototype is formed, which contains:

• The visual concept of the product.
• Description of all functionality to be implemented.
• Block diagrams of the main functions.
• Mathematics of the project, which contains the logic of all internal calculations.

Thanks to such a prototype, the client can understand how the trading bot will work and look even before the start of its technical implementation. And to make communication easier, our team also records short demo videos that explain the details of how the product works.

Stage 3. Design development

The graphical interface of the trading bot plays a very important role, since it is with it that the trader will interact most of the working time. Therefore, the GUI should be not only functional, but also attractive, convenient and comfortable for users. This task is handled by UI designers.

Stage 4. Programming

The technical development of a trading bot can be divided into two parts:

• Frontend is the implementation of the user side of the product, with which traders will work on the client side. The frontend includes layout, creation of animations and other interface components.
• Backend – this part of the bot is stored on the server, and its main task is to ensure reliable storage and fast data processing. When creating a backend, programmers write the functional code, design the database architecture, build the client-server architecture and implement the API.

Stage 5. Testing

After the development is completed, it is important to make sure that the bot works correctly and is ready for release. To do this, QA engineers conduct several levels of testing and, in case of problems, control the prompt fixing of bugs.

Stage 6. Technical support and development

After the launch, the bot will begin to bring the first profit, but this does not mean that you need to stop its development. The fact is that the cryptocurrency market is constantly changing, and so that the capabilities of the bot do not lose their relevance, they need to be constantly developed. To do this, we propose to connect the project to our qualified technical support.

The trading bot provides the trader with many new features – from analyzing the market situation to automatically opening and closing orders. This makes it an almost indispensable tool for professional digital asset trading.

AVADA MEDIA has extensive experience in developing solutions for trading automation. Through a deep understanding of the market, careful design and use of the latest technologies, our teams will help you create a truly effective trading bot that will significantly increase your performance.