Bots for trading on the Binance exchange

A trading bot for Binance is a special program that connects via an API to the exchange, monitors market conditions and automatically creates orders to buy or sell cryptocurrency on behalf of the user. Such systems have been used in traditional financial markets for several decades, and in the world of cryptocurrencies they have become even more popular, since due to the high volatility of digital coins, it is necessary to respond to market changes as quickly as is almost impossible for a person to do.

What are trading bots and how do they work?

Trading bots for Binance connect to a user’s account on a cryptocurrency exchange and make trades on his behalf. Various indicators and signals are used in the process. The main goal and idea of automation is to help the user earn money while spending a minimum amount of personal time. In addition, there is an opinion that computers trade better than people, since almost all trading consists of mathematics and probability. The program provides a level of speed and accuracy that is impossible for humans.

Strategies implemented by bots can be simple or complex, up to advanced real-time arbitrage across multiple exchanges. It depends on what algorithms the developers have installed.

To work, the user must provide public and private API keys, which are generated in the personal account of the Binance exchange. In this way, you inform the exchange that the bot has permission from you to access the account and perform transactions.

Created API key on the Binance exchange

APIs are used to allow external applications or access to data or functions within an exchange. Trading bots use the API to request market data, information about the amount of funds in the user’s account, and make transactions. At any time, the user can revoke access by deleting the keys on the exchange.

Ideally, trading bots should generate risk-adjusted returns, providing returns greater than if funds were simply sitting around waiting for prices to rise. The cryptocurrency market never closes, unlike classic stock exchanges, which is a very stressful situation for investors. Trading bots are gaining popularity in the crypto community due to increased market volatility. Today, dozens of different robots of different formats are available in the industry (paid with a license, paid with a percentage of profits, free with open source, etc.).

ALL!

I ran this bot for several days, I was not banned, I slightly increased the amount of USDT - so with peace of mind I give you the bot and its source code. You can modify it to suit your needs, or ask for modifications.

I wish you good earnings, if during operation any problems are identified or questions arise, feel free to write in the comments or to me personally, contacts are in the profile.

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Advantages and disadvantages of using bots

The main advantages of working with trading bots for Binance:

This is beneficial for the market as a whole. Experts recognize that automated systems make the market more efficient, inclusive and healthy. Thanks to the massive use of bots, price spreads on the exchange have decreased significantly in recent years.
The bot always works, even when the person is sleeping. This way, not a minute of time is lost for profitable trading.
Robots eliminate routine. No person can withstand the monotonous performance of the same type of actions for months.
High accuracy of entry and exit from positions.
The absence of emotions, which sometimes force a trader to commit rash actions.
The greater liquidity created by bot trading is attracting new faces and companies to the industry.

The disadvantages include the following:

The bot is not 100% independent, it still needs supervision and configuration. This requires certain technical and financial knowledge.
The quality of trading directly depends on the quality of the algorithms, that is, the professionalism of the robot’s development team.
Potential security weaknesses. If the blockchain is practically invulnerable to hackers, then bots and other software may be susceptible to hacking.

Now let's look at several trading bots that can work in conjunction with the Binance cryptocurrency exchange.

Introduction

This article presents a simple bot for trading on the Binance exchange.

The bot creates a buy order based on the average price of the specified number of buy offers and then tracks it. If the order is not executed within a certain amount of time, the order is cancelled. If the order is executed, a sell order is placed with the specified profit. After the sell order is executed, trading proceeds in a new circle.

Trading on several pairs is supported, by default the bot works with a BNB commission, but trading with a regular type of commission is also supported.

Tips for using trading bots

Some tips for safer and more efficient use of trading bots on Binance:

API keys should be stored just as carefully as private keys from crypto wallets, as they can be used to access and manage your exchange balance.
The bot usually only asks for permission to trade. You should not give permission to withdraw funds. An exception may be the situation when you use arbitrage bots trading on different exchanges.
Put two-factor authentication and strong passwords on everything you can.
Use backtexting. It allows you to run strategies on historical price data to test their effectiveness. However, you need to understand that this is just a test, and in reality everything may be different.
Experiment with strategies. Often one strategy works better with one coin and another with another. Or a strategy that works well in a bull market may not perform well in a bear market.
Set yourself up for some losses. Automation of trade is not yet a guarantee of profit. Use a stop loss to limit losses. And just start with small amounts that you don’t mind losing.
In some cases, you will have to make trades manually. A bot is more of an assistant than a complete replacement for a person.
Keep an eye on commissions. When you trade a lot, you will pay a lot of commissions. It is necessary that profits cover these costs.
Some bots (for example, HAAS) support such concepts as insurance and risk protection. The bottom line is that if the price changes too sharply, the bot stops trading. Don't neglect this feature.

Careful attention to every financial action will help you avoid many pitfalls.

Two Main Algorithmic Trading Strategies

While the instructions for implementing a dollar-cost averaging strategy may be fairly simple, algorithmic trading requires more advanced knowledge. If you are learning about algorithmic trading, you should start by learning the two trading strategies commonly used in algorithmic trading: moving averages and RSI (relative strength index) lines.

Using Moving Averages in Algorithmic Trading

Moving averages are an indicator often used in the golden cross or death cross trading strategy. This pattern uses two moving averages (MA). MAs are lines on a chart that show the average price of an asset over a certain period. The strategy consists of observing the intersection of the 50 MA (average price over the last 50 days) and 200 MA (average price over the last 200 days) lines on long-term timeframes, such as daily or weekly. When two moving averages cross, a golden cross/convergence is formed (when the 50 MA crosses the 200 MA from bottom to top) and a death cross/divergence (when the 50 MA crosses from the 200 MA from top to bottom). Convergence signals short-term momentum prevailing over long-term momentum. Some traders interpret this as a signal to buy. Conversely, divergence signals the predominance of long-term momentum over short-term momentum, which is interpreted as a signal to sell.

Using RSI in Algorithmic Trading

Relative Strength Index (RSI) is a line graph indicator that determines the strength of a trend by calculating the average number of gains and losses over a 14-day period. RSI can be used to determine whether an asset is overbought or oversold. When an asset is overbought, it is expected that the market will undergo a correction and a price pullback in the opposite direction, i.e. trend reversal.

Experienced traders use RSI to determine trend reversal points. The RSI line usually moves with the price. A divergence between the price direction and the RSI line signals an impending price reversal.

The RSI line moves from 0 to 100. The range from 30 to 70 is most often used as a base. When the indicator line rises above 70, the asset is considered overbought. When the RSI value is below 30, the asset is considered oversold. The best time frame to look for divergence is usually the four-hour or daily window, as these periods tend to show stronger shifts in the medium to long term.

Setting up moving averages and RSI on Binance

To configure MA, follow the step-by-step instructions:

Step 1: Go to the trading page on Binance (for example, BNB/BTC pair).

Step 2: Click the Settings icon next to MA as shown below.

Step 3: Set up MA and click Save.

To set up RSI, follow the instructions below:

Step 1: Go to the trading page on Binance (for example, BNB/BTC pair).

Step 2: Click the Settings icon next to MA.

Step 3: Scroll down and check the box next to RSI. Select the desired number of days for the RSI and click Save.

After you complete the steps above, your graph will look like this:

Summary

To summarize the review, we can say that each of the terminals reviewed has its own pros and cons and is suitable for different types of traders:

Terminal from Binance - For intraday traders who don’t want to bother with settings;
The TigerTrade platform is free and includes several cryptocurrency exchanges;
ATAS Terminal – Suitable for more professional traders;

It is only clear that by using the terminal, bypassing the web versions of exchanges, a trader increases his efficiency in the market due to quick response and live charts.

TigerTrade - Terminal for scalping cryptocurrencies

Software logo

Demo access: Yes (14 days)
Russian language: Yes
Cryptocurrency trading: Yes - Free
Official site

TigerTrade - Free trading terminal for trading cryptocurrencies from Russian developers. The paid version is saved for the stock market. The software has a free 2-week version, after which you will be asked to purchase a tariff. Payment is made in subscription format. The starting price for 1 month of access starts from 2900 rubles.

Subscription cost

Over the past two years, the developer has added the ability to scalp cryptocurrencies to the terminal, which has led to a new wave of clients. Today, the following exchanges are available for connection to trade Bitcoin and its futures:

BitMEX;
Bitfinex;
Binance;
Bybit;
Deribit;
hitBTC

To work with the stock market, you will need to connect to one of the trading drives: QUIK, MetaTrader 5, SmartCOM, Transaq, Plaza2. To work on the crypto market, let’s consider connecting using the example of the popular Binance exchange.

How to connect TigerTrade to Binance

To start trading cryptocurrencies using TigerTrade, you need to register on the official website.

Then, on the tariffs page, select a free subscription format with cryptocurrency trading, click “Free”

After this, you will receive a login and password to log into the terminal. Download it from this page, install it, log in using your login and password.

Connecting the exchange

Go to File > Connections > Configure

Connect to Binance

Next, click on the green plus and select Binance.

Choosing an exchange

In the next window, in the “Account” line, select the markets on which we are going to trade. If we want to connect both the spot and futures markets together, we repeat the connection procedure for each individual market with the same API Key and Secret. We enter the familiar Secret and Key.

Connection setup

Binance appears in the line of exchanges - Click “connect”. If everything is entered correctly, the button will switch to the “Disable” state. In the screenshot below, only the spot market is connected; in order to connect futures, you need to repeat the connection procedure.

Exchange connected

TigerTrade is ready for scalping with cryptocurrencies, all that remains is to configure the chart itself. Videos from the creators themselves, or our instructions, which will soon appear on our platform, will help with this.

Features of TigerTrade

TigerTrade is perfectly adapted for both beginners and experienced active day traders. Features of the project include the ability to use the division of graphs on different monitors, hot keys and much more.

TigerTrade functionality