A tutorial on how to do algorithmic trading of cryptocurrency

in ai •  2 years ago  (edited)

You will need:

  • Enigma Catalyst
  • Knowledge of Python
  • Understanding of data analysis
  • Ability to create trading algorithms

If you can get this right your trade bot can make money by automatic trading. This bot can do it's own technical analysis and profit for you. Of course this also has implications for Steem and Steemit as bots are also on Steem. Expect these Steemit bots to get smarter if people choose to refine and test the algorithms are the algorithms are the secret sauce of profit bots.

Python is very simple. A programmer coming from C or C++ can learn Python over a weekend. Writing bots is one of the most simple tasks in Python. Algorithmic trading code is usually very simple scripts but the quality of the algorithms are what make the difference and an algorithm is only as good as it's data sources and it's strategies.


Suhonen, A., Lennkh, M., & Perez, F. (2017). Quantifying Backtest Overfitting in Alternative Beta Strategies. The Journal of Portfolio Management, 43(2), 90-104.

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They allow signup for the alpha version which allows to install Catalyst on your computer. You don't need Enigma tokens.

I had access to community build scripts like trading inside the Bollinger Bands or doing some basic market analysis.

Right now it's an early stage and some of the community scripts didn't work because of the constant development of the project.

I can see the future of the project and where it can go but right now you can also buy a trading bot and run it locally.

I think it's a great project because it can grow bigger than just trading bots / AI. I'm also looking forward to the collaboration of iExec + Signals.

How hard would it be to learn python for algorithmic trading for somebody with analytic but not programming background?

Python isn't that hard. For true beginners, there's a course on Coursera from the University of Michigan that is so easy I call it "spoon feeding." The worst part of it is putting up with the professor's terrible attempts at humor. There must be hundreds of video tutorials on YouTube as well.

IMO, It's probably the easiest of the modern & most-used programming languages today.

Thanks for sharing! I hadn't heard of enigma catalyst before but I'll definitely check it out!

Do you have some experiance with this? Did you made money this way?

I think 80% of people can't lay on bot to trade - they don't have enough money to experiment.

I hold Enigma tokens and I do intend to make money off the Enigma Catalyst platform. In theory a smart contract could be set up to allow people to send money to it for a bot to trade. The writer of the bot could remain completely anonymous and on Enigma the secret algorithms could also remain proprietary because EnigmaMPC will be using somewhat homomorphic encryption to compute over encrypted data. So you would subscribe to the dataset.

  ·  2 years ago (edited)

This trading bot only for Enigma? Or Enigma it's platform of bots, and those bots will work insted you?

No, this trading bot will work with most exchanges. This is algorithmic trading for Poloniex or Bittrex or any exchange which has a suitable API. But if you mean can these bots only be built using Enigma Catalyst?

Only Enigma Catalyst has the tools you see but there are other platforms which offer similar technology.

Oh, interesting, but you ever read success or failure cases of using those bots? Does bots improve statisticly your success rate?

Super! I will probe and try to apply if I can. :)
Thank you very much!!!

Dana, why not offer a few examples of a trading strategy to give people an idea of what is involved?

If you checked my reference for "Quantifying Backtest Overfitting in Alternative Beta Strategies" you do find the examples.

I will say that trading crypto is not like trading stocks so the strategies will have to be adapted to the crypto space but a lot of strategies exist from Forex trading and stocks which can be adapted. I have not had the time to investigate this.

Hi Dana, I don't see any new blog post on Enigma's website but I noticed a 39% jump in 24 hours. Figured I would check with you. Any insight on what's driving this?