Advanced Trading Bot on DYDX with Python and AWS Practice Exam
Advanced Trading Bot on DYDX with Python and AWS Practice Exam
About Advanced Trading Bot on DYDX with Python and AWS Exam
The Advanced Trading Bot on DYDX with Python and AWS exam is designed to assess your ability to develop, deploy, and manage a sophisticated trading bot for the DYDX platform. DYDX is a decentralized exchange for cryptocurrency derivatives, and this exam requires candidates to demonstrate advanced skills in integrating DYDX’s API with Python for building algorithmic trading strategies. Throughout the exam, you will be tasked with creating an automated trading system capable of executing buy and sell orders, monitoring market data in real time, and adapting strategies based on changing market conditions. In addition to Python programming, the exam emphasizes cloud infrastructure, specifically AWS, where you will deploy the bot using AWS services such as EC2, Lambda, and S3 to ensure the bot operates efficiently, securely, and at scale. Candidates will also need to understand risk management principles to safely execute trades, as well as how to implement robust security measures to protect API keys and user data.
Skills Required
- Strong knowledge of Python is required, including experience with libraries like Pandas, NumPy, and others used for data analysis, API integration, and automation.
- Understanding of trading strategies, order types, risk management, and market analysis is essential for building effective trading bots.
- Familiarity with the DYDX API, including authentication, order placement, and retrieving market data, to interface the bot with the exchange platform.
- Experience with AWS services such as EC2, S3, Lambda, and RDS for hosting, storage, and automation to deploy the bot and ensure its scalability and reliability.
- Ability to work with real-time market data, handle streaming data, and make quick trading decisions based on live market conditions.
- Knowledge of implementing secure API connections, managing API keys, and ensuring data privacy and bot safety.
- Skills in deploying bots on AWS, ensuring uptime, monitoring performance, and debugging issues as they arise.
Who should take the Exam?
This exam is intended for individuals with a background in software development, quantitative finance, or algorithmic trading who are interested in developing and deploying advanced trading bots. It is ideal for:
- Professionals looking to automate their trading strategies on DYDX using Python and AWS.
- Software Developers
- Individuals with experience in market analysis and statistical modeling who wish to automate their analysis and trading decisions.
- FinTech Enthusiasts
- Cloud Engineers
Course Outline
The Advanced Trading Bot on DYDX with Python and AWS Exam covers the following topics -
Domain 1 - Introduction
- What to Expect and What NOT
- Overview
- Accessing Discord and Resources
- Manual Trading on DYDX
Domain 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
Domain 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
Domain 4 - Environment Setup
- Setting Up VS Code and Python VENV
- Steps for Configuring GitHub Repository
- Adding Environment Variables
Domain 5 - Bot Build - Stage 1
- Configuring Bot Constants
- Stage 1 Overview
- Connecting to DYDX
- All Positions Function - Part 1 and 2
Domain 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
Domain 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
Domain 8 - Telegram Messaging Integration
- Setting Up Telegram Bot
- Sending Initial Message via URL
- Sending Message Using Python
- Placing Messages in GitHub
Domain 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
