cnoveron/bollingerbandstrading

Binance Crypto Trading bot using Bollinger Bands Strategy

Project

Binance Crypto Trading Bot - Bollinger Bands Strategy

Main Goal

The main goal of this project was to develop a back test enviroment in python to deploy a crypto trading bot using the Binance API. The API was used to gather crypto's historical data and the trading strategy of choice was the Bollinger Bounce Strategy. The created environment allows simultaneous analysis of different digital assests traded on Binance, testing of different trading strategies, and visualizing the trade's data on graphs. The results of this project provided a rough estimate of weather using this bot for live trading on the selected cryptocurrencies would have been profitable over the month of February, 2022.

Data

The historical data was gathered using the BackTest_GatherData.py file and then saved to a .csv file.

• Digital Assets Traded: Bitcoin, DogeCoin, Cardano, Luna, SandBox, Ethereum, Polygon, Avalanche and SuperFarm
• Data Time Frame: 1h chart from 01.02.22 - 01.03.22

Bollinger Bounce Strategy

The Boolinger Bands are a technical indicator developed by John Bollinger and are used to measure volatility and to indentify "overbought" and "oversold conditions. Most Bollinger applications use a 20-period moving average and the upper and lower bands are then calculated as two standard deviations from the middle band.

Bollinger Bands Calculation:

• Upper Band = Middle band + 2 standard deviations
• Middle Band = 20-period moving average (most charting packages use the simple moving average)
• Lower Band = Middle band – 2 standard deviations

Strategy Implementation:

• If market price below lower band, buy asset.
• If market price above upper band, sell asset.

Results

Results of Bollinger Bounce Strategy over Feb,22:

Example Graph: BTC buys and sells over the traded period

Comparison between Bollinger Stratgy and holding the asset over Feb,22: