Advanced Trading Bot on DYDX with Python and AWS Online Course
Advanced Trading Bot on DYDX with Python and AWS Online Course
In this online course, you will learn how to build a fully automated decentralized trading bot on DYDX using Python and AWS. The course covers essential concepts like statistical arbitrage, cointegration, Z-score trading strategies, and optimal position sizing with the Kelly Criterion. You will also gain hands-on experience configuring MetaMask, setting up the Alchemy HTTP provider, and accessing DYDX API for real-time data and order placement. The course walks you through environment setup, creating a GitHub repository, and integrating the bot with AWS for 24/7 operation. You will implement the BotAgent class, manage trades, and set up Telegram notifications for real-time updates. By the end, you'll have the skills to deploy and manage a high-performance trading bot with Python, DYDX, and AWS.
Key Benefits
- Gain hands-on experience in developing a complete decentralized trading bot using Python, enabling you to automate trading strategies efficiently.
- Learn how to integrate automated Telegram notifications within your bot for real-time updates and alerts, enhancing your trading operations.
- Master the techniques of statistical arbitrage on the DYDX decentralized exchange, equipping you with the skills to capitalize on cryptocurrency market inefficiencies.
Target Audience
This course is designed for intermediate to advanced Python developers and cryptocurrency enthusiasts who seek to enhance their trading skills on the DYDX platform. A foundational understanding of Python is essential for coding and bot development. Although prior knowledge of cryptocurrency trading strategies is helpful, it is not a prerequisite. To fully engage with the course, participants should have access to a computer with internet connectivity for setting up the development environment and interacting with DYDX. A basic understanding of blockchain technology and decentralized exchanges will aid in better grasping the course content.
Learning Objectives
- Develop a statistical arbitrage strategy utilizing cointegration to identify profitable trading opportunities.
- Implement effective position sizing and risk management strategies to ensure long-term trading success.
- Learn how to connect to and interact with the DYDX API for seamless trade execution.
- Understand the concept of Z-score and apply it to trading spreads for optimized market entry and exit points.
- Integrate Telegram messaging for real-time notifications, keeping you updated on trade activities.
- Master the process of deploying your trading bot on AWS, ensuring 24/7 operation and continuous trading.
Course Outline
The Advanced Trading Bot on DYDX with Python and AWS Exam covers the following topics -
Module 1 - Introduction
- What to Expect and What NOT
- Overview
- Accessing Discord and Resources
- Manual Trading on DYDX
Module 2 - Strategy
- Undersand Statistical Arbitrage and Cointegration
- Trading the Spread Using Z-Score
- Understanding the Hedge Ratio
- An Introduction to Half-Life
- Position Sizing and Risk Management
Module 3 - DYDX FastTrack
- Steps for Setting Up MetaMask
- Configuring Alchemy HTTP Provider
- Learn Accessing DYDX Credentials
- Connecting to DYDX in Python with Colab
- Understanding DYDX API Documentation
- Retrieving Public Candlestick Price Data
- Placing Orders on DYDX via Private API
Module 4 - Environment Setup
- Setting Up VS Code and Python VENV
- Steps for Configuring GitHub Repository
- Adding Environment Variables
Module 5 - Bot Build - Stage 1
- Configuring Bot Constants
- Stage 1 Overview
- Connecting to DYDX
- All Positions Function - Part 1 and 2
Module 6 - Bot Build - Stage 2
- Stage 2 Overview
- Retrieving ISO Times
- Preparing Market Prices
- Completing Market Prices
- Process of Developing Cointegration Functions
- Storing Cointegrated Pairs Data
Module 7 - Bot Build - Stage 3
- Stage 3 Overview
- Initializing BotAgent Class
- Finalizing BotAgent Class
- Setting Up Open Trades
- Triggering Trade Logic for Open Trades
- Engaging BotAgent for Open Trades
- Managing Exits - Part 1 and 2
- Building and Running Tests
- Deploying with Git and Planning Next Steps
Module 8 - Telegram Messaging Integration
- Setting Up Telegram Bot
- Sending Initial Message via URL
- Sending Message Using Python
- Placing Messages in GitHub
Module 9 - AWS Cloud Deployment
- Introduction to AWS and Signup
- AWS EC2 - Overview and Plan
- Creating Security Group
- Launching EC2 Instance
- Connecting to EC2 and Installing Python
- Downloading and Testing the Bot
- Updating the Code
- Automating with CRON
