Coinbase Trading Bot

This project implements a simple trading bot for Coinbase, using RSI (Relative Strength Index) and SMA (Simple Moving Average) indicators to make trading decisions.

Features

• Fetches market data for tradable currencies from Coinbase API
• Calculates RSI for each currency
• Identifies buy and sell opportunities based on RSI values
• Executes trades automatically
• Stores trade history and market data in a PostgreSQL database

Requirements

• Python 3.7+
• PostgreSQL database
• Coinbase API key and secret

Setup

1. Clone the repository:

   git clone https://github.com/verges-io/trading-bot.git
   cd trading-bot
   

2. Install the required Python packages:

   pip install -r requirements.txt
   

3. Set up your PostgreSQL database:

   • Install PostgreSQL if you haven't already
   • Create a new database for the trading bot:

     createdb coinbase_trading_bot
     

   • Connect to the database:

     psql coinbase_trading_bot
     

   • Create the necessary tables by running the following SQL commands:

     CREATE TABLE IF NOT EXISTS trades (
         id SERIAL PRIMARY KEY,
         timestamp TIMESTAMP DEFAULT CURRENT_TIMESTAMP,
         symbol VARCHAR(10) NOT NULL,
         type VARCHAR(4) NOT NULL CHECK (type IN ('BUY', 'SELL')),
         amount DECIMAL(18, 8) NOT NULL,
         price DECIMAL(18, 8) NOT NULL,
         total_value DECIMAL(18, 8) NOT NULL,
         transaction_id VARCHAR(100)
     );
     
     CREATE TABLE market_data (
         id SERIAL PRIMARY KEY,
         symbol VARCHAR(10),
         timestamp TIMESTAMPTZ,
         price DECIMAL,
         rsi DECIMAL(11, 8)
     );

   • Exit the PostgreSQL prompt:

     \q
     

4. Set up your Coinbase API credentials:

   • Log in to your Coinbase Pro account
   • Navigate to API settings
   • Create a new API key with the necessary permissions (view, trade)
   • Make note of the API key and API secret

5. Create a .env file in the project root directory and add your database and Coinbase API credentials:

   POSTGRES_DB=coinbase_trading_bot
   POSTGRES_USER=your_username
   POSTGRES_PASS=your_password
   
   COINBASE_API_KEY_NAME=your_api_key
   COINBASE_API_PRIVATE_KEY=your_api_secret
   

   Make sure to replace your_username, your_password, your_api_key, and your_api_secret with your actual credentials.

Usage

1. To run the trading bot:

   python trading-bot.py
   

2. To fetch and store current market data:

   python coinbase-load-data.py
   

It's recommended to set up a cron job or a scheduler to run trading-bot.py every 4 hours and coinbase-load-data.py more frequently (e.g., every 15 minutes) to keep the market data up-to-date.

Configuration

You can adjust the trading parameters in the trading-bot.py file:

• RSI overbought/oversold thresholds
• SMA period
• Minimum trade amounts

Logging

The bot logs its activities to /var/log/trading_bot.log. You can adjust the log level by passing the --log-level argument when running the script.

Testing Mode

To run the bot in testing mode without executing actual trades, use the --testing flag:

python trading-bot.py --testing

Disclaimer

This bot is for educational purposes only. Use it at your own risk. Always understand the code and strategies before running automated trading systems with real money.

License

This project is licensed under the MIT License - see the LICENSE file for details.