Advanced Trading Bot on DYDX with Python and AWS Online Course

Advanced Trading Bot on DYDX with Python and AWS Online Course

In this course, you’ll learn to build a fully automated decentralized trading bot on DYDX using Python, with real-time Telegram notifications and 24/7 deployment on AWS. Starting with a roadmap of objectives, you’ll explore key trading concepts such as statistical arbitrage, cointegration, hedge ratio, half-life, and the Kelly Criterion for risk management. You’ll gain hands-on experience configuring MetaMask, Alchemy, DYDX credentials, and APIs for both data retrieval and order execution. Along the way, you’ll set up your environment in VS Code, manage version control with GitHub, and integrate environment variables for smooth operations.

Through structured bot-building stages, you’ll implement core functions, construct the BotAgent class, manage trades, and automate processes with CRON. By the end, you’ll have the knowledge and practical skills to design, deploy, and maintain a professional-grade trading bot in the cloud.

Who should take this?

This course is designed for traders, developers, and tech enthusiasts who want to advance their skills in algorithmic trading. It’s best suited for those with a basic understanding of Python, trading strategies, and cloud platforms who are looking to build, deploy, and scale automated trading bots. Whether you’re a trader aiming to automate strategies, a developer exploring fintech, or a professional interested in crypto trading with DYDX, this course will help you gain practical, real-world expertise.

What you will learn?

• Create a statistical arbitrage strategy based on cointegration
• Implement position sizing and risk management techniques for successful trading
• Learn how to connect and access DYDX API for trading
• Understand the concept of z-score and its application in trading spreads
• Explore Telegram messaging integration for real-time trade notifications
• Gain proficiency in deploying your bot on AWS for continuous trading

Course Outline

Strategy

• Statistical Arbitrage and Cointegration
• Trading the Spread Based on Z-Score
• About the Hedge Ratio
• About Half-Life
• Position Sizing and Risk Management

DYDX FastTrack

• MetaMask Setup
• Alchemy HTTP Provider Setup
• DYDX Credentials Access
• Connect to DYDX in Python with Colab
• Interpreting DYDX API Documentation
• Get Public Candlestick Price Data
• Place Orders on DYDX through Private API

Environment Setup

• VS Code and Python VENV Setup
• GitHub Repository Setup
• Adding Environment Variables

Bot Build - Stage 1

• Bot Constants Configuration Setup
• Stage 1 - Plan of Attack
• Connect_To_DYDX
• All Positions Function - Part 1
• All Positions Function - Part 2

Bot Build - Stage 2

• Stage 2 - Plan of Attack
• Get ISO Times
• Construct Market Prices - Preparation
• Construct Market Prices - Completion
• Construct Cointegration Functions
• Store Cointegrated Pairs Data

Bot Build - Stage 3

• Stage 3 - Plan of Attack
• t Class - Initialize
• t Class - Completion
• Open Trades - Initial Setup
• Open Trades - Trade Trigger Logic
• Open Trades - Engage t
• Manage Exits - Part 1
• Manage Exits - Part 2
• Build Test Run
• Git Deploy and Next Steps

Telegram Messaging Inclusion

• Telegram Bot Setup
• Sending First Message through URL
• Send Message through Python
• Message Placement and GitHub

AWS Cloud Deployment

• About AWS and Signup
• AWS EC2 - Plan of Attack
• Create Security Group
• Launch EC2 Instance
• Connect to EC2 and Install Python
• Download and Test Bot
• Making Code Updates
• Full Automation with CRON

Next Steps

• Bot Improvements and Next Steps