So a month ago I started getting into the bitcoin craze. I found a very volatile market with chances to make some big money or lose some big money. I decided after a week that I was making too many mistakes trying to trade off emotion. I would see huge gains and freak out! then hit rock bottom a few minutes later. I managed to make my first thousand dollars trading litecoin in a couple of days. Truth be told I would have made twice that had I bought and held, but that is not fun. After all, this kind of trading really feels like gambling and I was feeling that sort of rush.
In the back of my mind, I’m thinking why don’t I leave emotion behind and start trading with a bot. I search online and couldn’t find any bots that worked with gdax.com my current trading platform. So I’m a programmer, I guess it’s time to make my own.
Just a little bit about me, I’m not a super programmer I’ve been in the industry for a few years. I have also taught python data analytics at the graduate level at a local university. I have a bachelor’s degree in business and mathematics, also master’s degree in inforamtion systems. Sounds like the perfect combo for this endevour.
So here are my goals for this blog:
- Write a script that will make trades on litecoin for my gdax account.
- Add social media to the mix with automated posts of my trades and results.
- Learn something about algorithmic trading.
- Maybe make some coin while I’m at it!
You can find everything you need to know about gdax and their api at the following url:
My language of choice will be python because I really like white space matters and the tools that come with it for data analytics and charting. Also, I will be trading litecoin exclusively because I like the volume and the volatility. Currently, Litecoin has a volume of around 5 million which dwarfs bitcion. That means more instant trading and more tokens are moving the market. Also, they are like the silver to bitcoins gold. I’m not a wealthy person when I program this I plan on throwing maybe 600 in there to test my metal.
Also, I’m not a professional trader by any means, you will probably get the satisfaction of watching me lose all of my money! So take everything with a grain of salt and don’t make trades base off of what I’m showing you here. Do your own thing! Lose your own money! I got this covered.
I’m going to take some time to look through the api docs and I’ll do a follow up with some code and what I have found. Setting up the api is as easy as setting up a gdax account and there is a tab where you can request an api key. I would recommend reading over their fees and don’t get caught off guard with those. You should include them in your trades when calculating margin.