The project workflow can be outlined as follows:
- Setting Up API Access: Users will need to register and obtain API keys from their preferred cryptocurrency exchange platforms (e.g., Binance, Coinbase, Kraken). These API keys will be used to access real-time market data and place orders.
- Implementing Command Interface: The trading bot will have a user-friendly command-line interface (CLI) or a Telegram chatbot to accept commands from users. Users can input simple commands to execute trades, such as "buy BTC" or "sell ETH."
- Fetching Real-Time Market Data: The trading bot will periodically fetch real-time market data, including cryptocurrency prices, trading volumes, and other relevant indicators, from the exchange APIs.
- Implementing Trading Strategy: The project will include the implementation of a simple trading strategy, such as a moving average crossover or a relative strength index (RSI) strategy. Users can choose a preferred strategy or set their own parameters for the bot to follow.
- Placing Buy/Sell Orders: Based on the defined trading strategy and user commands, the trading bot will execute buy or sell orders in real-time using the API keys provided by the users.
- Risk Management: The trading bot may incorporate basic risk management features, such as setting stop-loss or take-profit levels to manage potential losses and secure profits.
- Monitoring and Reporting: The bot will continuously monitor the portfolio's performance, provide real-time updates on executed trades, and generate reports on trading activities.
- User Authentication and Security: To ensure security, the project will include user authentication mechanisms and encrypt sensitive data, such as API keys.
