Crypto trading is both enormously profitable and terribly risky. The market is characterized by wild volatility, leading to 10-50% swings in just a matter of days. Thus, traders need to constantly stay alert about these sudden fluctuations to spot the right trading opportunity for higher profits. But, the crypto market operates 24/7 and it is not humanly possible to monitor a trading market round-the-clock. However, crypto trading systems or bots offer the needed support here. A crypto trading system is a bot-based algorithm-driven system that studies the market trends and signals to simplify the crypto trading process for traders. Mex group
It’s self-explanatory why an increasing number of traders today are signing up with crypto trading systems. In other words, these trading systems are commanding a surging demand in the contemporary crypto trading zone. If you are looking for an avenue to make a handy income in the crypto trading scene other than through trading, you could develop a professional crypto trading system.
The post below offers a simple guide on developing a full-fledged trading system for crypto traders.
Step 1: Programming language
First, you need to zero in on your preferred programming language for trading systems. Choose a one that you are already acquainted with. The most common languages implemented for crypto trading systems are Python, Perl, Javascript, and C. Among these, Python is a top favorite among developers when it comes to crypto trading systems.
Step 2: Integration with crypto exchanges
The trading system should be backed by APIs that will permit the bot to execute trade on specific crypto exchanges. In that case, you will need APIs from all those particular exchanges where you want the bot to conduct trading activities. Good thing is, all the leading exchanges today offer the needed APIs for trading systems. Make sure to settle for the highly reputed and credible crypto exchanges. Talk to their support team and they will help you with the APIs.
After you receive the needed APIs, you will have to register your account at all these platforms. Based on the exchange, you might be asked to submit your identity proof for vetting procedures. So, keep the documents handy when you set up your account.
Step 3: Choose trading model
Then, you will need to select a particular trading model for your independent trading system.
The most common one is the Technical Charting system. These bots are designed to study the chart metrics on behalf of the trader and execute trades immediately if the market seems to be in favor.
Another option is the Arbitrage trading model. Well, arbitrage trading is all about profiting from variations in price of your chosen crypto through comparative study on multiple trading platforms. If you choose an arbitrage model for your trading system, the system would take care of all the legwork involved in the comparative study of various platforms to find the most profitable rate.
Step 4: Finalize the algorithm
The overall experience of your trading system would be determined largely by the algorithm you incorporate into the trading system. Go for a cutting-edge algorithmic design, backed by solid mathematics. You must get a clear understanding on the sort of data that the algorithm has to interpret. This is important to ensure the most compatible algorithm for your trading system.
Step 5: Creating the system
You have finally reached the step where you would code the bot. If needed, seek help from fellow software developers who hold experience in developing trading systems for crypto traders.
Final words
Always make sure to go through a demo testing for the trading system.
Your trading system must allow easy big fixing and scalability as per the needs of the changing market in future.