Litecoin – Trading like a viking programmer

 

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:

  1. Write a script that will make trades on litecoin for my gdax account.
  2. Add social media to the mix with automated posts of my trades and results.
  3. Learn something about algorithmic trading.
  4. 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:

https://docs.gdax.com/?python#get-an-account

 

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.

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *