1. System Overview¶
TradingBot is a python script with the goal to automate the trading of stocks in the London Stock Exchange market. It is designed around the idea that to trade in the stock market you need a strategy: a strategy is a set of rules that define the conditions where to buy, sell or hold a certain market. TradingBot design lets the user implement a custom strategy without the trouble of developing all the boring stuff to make it work.
The following sections give an overview of the main components that compose TradingBot.
1.1. TradingBot¶
TradingBot is the main entiy used to initialised all the components that will be used during the main routine. It reads the configuration file and the credentials file, it creates the configured strategy instance, the broker interface and it handle the processing of the markets with the active strategy.
1.2. Broker interface¶
TradingBot requires an interface with an executive broker in order to open
and close trades in the market.
The broker interface is initialised in the TradingBot
module and
it should be independent from its underlying implementation.
At the current status, the only supported broker is IGIndex. This broker provides a very good set of API to analyse the market and manage the account. TradingBot makes also use of other 3rd party services to fetch market data such as price snapshot or technical indicators.
1.3. Strategy¶
The Strategy
is the core of the TradingBot system.
It is a generic template class that can be extended with custom functions to
execute trades according to the personalised strategy.
1.3.1. How to use your own strategy¶
Anyone can create a new strategy from scratch in a few simple steps. With your own strategy you can define your own set of rules to decide whether to buy, sell or hold a specific market.
Create a new python module inside the Strategy folder :
cd Strategies touch my_strategy.py
Edit the file and add a basic strategy template like the following:
import os import inspect import sys import logging # Required for correct import path currentdir = os.path.dirname(os.path.abspath(inspect.getfile(inspect.currentframe()))) parentdir = os.path.dirname(currentdir) sys.path.insert(0,parentdir) from .Strategy import Strategy from Utils import Utils, TradeDirection # Import any other required module class my_strategy(Strategy): # Extends Strategy module def __init__(self, config, broker): # Call parent constructor super().__init__(config, broker) def read_configuration(self, config): # Read from the config json and store config parameters def find_trade_signal(self, epic_id): # Given an IG epic decide the trade direction # Here is where you want to implement your own code! # return TradeDirection.XXX, stop_level, limit_level def get_seconds_to_next_spin(self): # Return the amount of seconds between each spin of the strategy # Each spin analyses all the markets in a list/watchlist
Add the implementation for these functions:
read_configuration:
config
is the json object loaded from theconfig.json
filefind_trade_signal: it is the core of your custom strategy, here you can use the broker interface to decide if trade the given epic
get_seconds_to_next_spin: the find_trade_signal is called for every epic requested. After that TradingBot will wait for the amount of seconds defined in this function
Strategy
parent class provides aBroker
type internal member that can be accessed withself.broker
. This member is the TradingBot broker interface and provide functions to fetch market data, historic prices and technical indicators. See the Modules section for more details.Edit the
StrategyFactory
module inporting the new strategy and adding its name to theStrategyNames
enum. Then add it to the make function28 29 30 31 32 33 34 35 36
def make_strategy(self, strategy_name): if strategy_name == StrategyNames.SIMPLE_MACD.value: return SimpleMACD(self.config, self.broker) elif strategy_name == StrategyNames.FAIG.value: return FAIG_iqr(self.config, self.broker) elif strategy.name == StrateyNames.MY_STRATEGY.value: return MY_STRATEGY(self.config, self.broker) else: logging.error('Impossible to create strategy {}. It does not exist'.format(strategy_name))
Edit the
config.json
adding a new section for your strategy parametersCreate a unit test for your strategy
Share your strategy creating a Pull Request in GitHub :)