Stock trading bot based on historical data analysis

Stock trading bot based on historical data analysis

If there was a single scheme for trading on traditional or crypto exchanges in the world, then only the lazy would not be wealthy today. However, there is not just a single solution – here everyone invents their own unique schemes based on completely different signals and tests them in practice. Some are lucky, some are not. However, we at BeFund know that if you have an idea, it must be implemented in code, and maybe it will bring you the millions and billions you have been dreaming of.

The basis for the new scheme

As of today, there is a lot of data in the world that is collected, systematized and stored for further study and practical use. Among them, you can also find historical data on market conditions and transactions with securities and digital assets.

Don’t be surprised and don’t be scared: every transaction made by you or someone else is tracked, processed and stored by several programs at once. It is inappropriate to talk about data security or total control here: everything that is publicly available (and any blockchain works as an open book for its participants) is subject to processing. And this is quite normal, it is the basis of the publicity of the work of the decentralized network.

Thus, if the data is there and there is an enormous amount of it, it is simply a sin not to use it for the needs of analysis for business development. Let’s add that there is a statement that history is constantly repeating itself, that is, it develops cyclically. That is why, with competent and timely analysis, there is a considerable chance to track and recognize signals that once helped other people trade successfully on the stock exchange. And today it should help those who know about these events. BeFund’s clients also pursued such a goal.

Where to get the necessary information?

In the case we are talking about now, there is a clear answer and we will tell you about it soon. However, if your strategy is based on the analysis of any other data, finding the right source is also not a problem. Today there are many commercial services that offer a wide range of information services. All that users need to use the data is integration and compliance with the provision of the relevant services. For example, a data provider can guarantee free provision of a limited number of requests per day to their server or database, and for more, the user must take out a paid subscription.

You can learn more about integration in the article “ BeFund presents ready-made crypto APIs for a quick start of business on the blockchain – meet Y-API! ”, where we talk about our own interesting developments and their integration into the customers’ business. However, it should be remembered: integration is carried out due to the created APIs and our company can integrate almost anything with each other. The main condition: all software involved in the process must have open APIs. On the contrary, combining products is simply technically impossible.

In our specific case, the integration took place with the TradingView service . It is a powerful international platform that has been collecting and storing various information around the world for a long time, which can be of value to businesses. A feature of the platform is the broad involvement of the audience in joint work in the local social network. Here, interested people enter data, create various charts, share experiences and discuss cryptotrading. TradingView claims more than 60 million members from around the world, but even without a concrete number, the amount of historical data collected is simply astounding. That is why BeFund customers entrusted our team with the integration and creation of a trading bot.

How does the bot work?

BeFund’s solution is presented in the form of a backend of a trading bot designed for trading on the Kraken and Coinbase exchanges. The choice of the stock exchange is made at the owner’s request. The bot is configured according to the technical task from the client and checking historical data is not the only source for making a decision on issuing a buy or sell order. Although this is the main criterion.

So at work, the bot checks an array of data provided to TradingView via our APIs. The system looks for signals of favorable transactions in the past. Next, it checks the frequency of similar processes and makes a decision if the algorithm confirms a successful match with cases in the past.

We cannot tell all the details of the commercial project, although there is a really interesting and complex process going on there. In fact, every ordinary person can understand it, because technically a lot depends on the analysis of graphic information, i.e. charts of cryptocurrency rates. In theory, an experienced trader could perform the same task as a bot, given the charts at the right time. However, there is a nuance: in a living person, this process will take several hours of careful checking and comparison of data. And during this time, the cryptocurrency exchange rate will certainly change. The bot does not spend the entire analysis, including making a decision, in a fraction of a second. So the advantages of using this trading method and a custom solution for its automation are obvious.


“Historia est magistra vitae” – says the Latin proverb, which means “History teaches life”. Creating your own cryptocurrency trading strategy based on historical facts is an interesting and ambitious idea, but not the only one of its kind. If you know what data allows you to improve your financial situation through stock trading and are confident that you are right, the BeFund team will be happy to help you bring your project to life. We understand the integrations and development of trading bots and are ready to create a perfect solution for you that meets all your needs and beliefs.