Building a Profitable Trading Strategy with an Intelligent Price Action Bot

C. Hema and Fausto Pedro García Márquez ()
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C. Hema: Department of Computer Science and Engineering, B.S. Abdur Rahman Crescent Institute of Science and Technology
Fausto Pedro García Márquez: Ingenium Research Group, Universidad Castilla-La ManchaCiudad Real

A chapter in Outsourcing, 2025, pp 205-219 from Springer

Abstract: Abstract Crypto trading has become increasingly popular in recent years, as cryptocurrencies have gained wider acceptance and mainstream attention. Many traders are drawn to the potential for high profits, as the value of some cryptocurrencies has risen dramatically in a short period of time. Crypto trading can be risky and volatile, as the value of cryptocurrencies can fluctuate rapidly and unpredictably. Traders should carefully research and understand the risks involved, and only invest what they can afford to lose. The traditional way of investing in financial assets like Stocks, Commodities, and Real Estate has proven to be a good source of passive income. Although we know that the markets tend to recover after every downfall, holding the assets through a financial crisis prevents the investor from the potential buying opportunities they had before the crash. Although cryptocurrency may yield astronomically huge gains overnight, there is also a huge downside. Monitoring of cryptocurrency trading is crucial for several reasons. It helps prevent fraud and scams, ensures compliance with regulations, reduces market manipulation, and protects investors from losses. Due to the lack of regulation in the cryptocurrency market, monitoring is essential for maintaining the integrity of the market and safeguarding investors. To overcome this, you can employ automated forms of trading that can generate revenue. Bots are given a set of trading guidelines defined based on timing, value, amount, or mathematical models. In addition to offering profitable trading opportunities, algorithmic trading increases market liquidity and improves trade execution by minimizing the impact of human emotions. This proposed model uses Docker Compose with Python to automatetrading and connect to various exchanges (Binance). Telegram is used here as an interface to manage transactions across various devices that support it. The benefits of automated trading go beyond the elimination of human emotions in trading. It can analyze large volumes of data faster than humans can, allowing for more efficient trades. Automated trading can also minimize the risk of losses, as bots can be programmed to sell when prices fall below a certain threshold.

Date: 2025
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DOI: 10.1007/978-3-031-95393-4_11

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