Index Trading Bot

Overview

Automated cryptocurrency index trading bot that runs on Netlify's serverless infrastructure. The bot monitors trading signals, automatically enters positions on strong buy signals, and takes profit at configurable targets while never selling at a loss.

Key Features

• Automated Signal Monitoring: Checks for buy signals every 5 minutes
• Position Management: Monitors positions for profit targets every 15 minutes
• Diamond Hands Strategy: Never sells at a loss, only takes profits
• Serverless Architecture: Runs entirely on Netlify functions
• Manual Override: API endpoints for manual trading control
• Multi-Index Support: Configurable for different index contracts

Architecture

┌─────────────────┐    ┌──────────────────┐    ┌─────────────────┐
│   Netlify       │    │  Base Network    │    │  Signals API    │
│   Functions     │◄──►│  Smart Contracts │    │                 │
│                 │    │                  │    │                 │
│ ┌─────────────┐ │    │ ┌──────────────┐ │    │ ┌─────────────┐ │
│ │check-signals│ │    │ │ Index        │ │    │ │   Market    │ │
│ │   (5min)    │ │    │ │ Contract     │ │    │ │  Analysis   │ │
│ └─────────────┘ │    │ └──────────────┘ │    │ └─────────────┘ │
│                 │    │                  │    │                 │
│ ┌─────────────┐ │    │ ┌──────────────┐ │    └─────────────────┘
│ │check-       │ │    │ │ Data         │ │
│ │positions    │ │    │ │ Contract     │ │
│ │   (15min)   │ │    │ └──────────────┘ │
│ └─────────────┘ │    │                  │
└─────────────────┘    └──────────────────┘

Tech Stack

• Runtime: Node.js 18+ with TypeScript
• Blockchain: Viem (v2.7.0) for Ethereum interactions
• Deployment: Netlify Functions
• Network: Base L2 (Chain ID: 8453)
• Scheduling: Netlify cron expressions

Prerequisites

1. Node.js 18+ with npm
2. Git for version control
3. Netlify account (free tier sufficient)
4. GitHub account for repository hosting
5. Base network wallet with ETH for gas and trading
6. Private key from wallet (MetaMask, etc.)

Project Structure

index-trading-bot/
├── netlify/
│   └── functions/
│       ├── bot-status.ts          # GET /api/bot-status
│       ├── check-positions.ts     # Cron: */15 * * * *
│       ├── check-signals.ts       # Cron: */5 * * * *
│       ├── sell-position.ts       # POST /api/sell-position
│       └── take-position.ts       # POST /api/take-position
├── src/
│   ├── config/
│   │   ├── abis.ts               # Index contract ABI
│   │   ├── constants.ts          # Environment configuration
│   │   └── dataAbi.ts           # Data contract ABI
│   └── services/
│       ├── blockchain.service.ts # Viem wallet/client setup
│       ├── position.service.ts   # Position tracking & P&L
│       ├── signal.service.ts     # Signal API integration
│       └── trade.service.ts      # ZapIn/ZapOut execution
├── netlify.toml                  # Netlify configuration
├── package.json                  # Dependencies & scripts
├── tsconfig.json                 # TypeScript configuration
└── .env.example                  # Environment template

Environment Configuration

Create .env file with the following variables:

Required Variables

# Wallet Configuration
PRIVATE_KEY=0x1234567890abcdef...  # Your wallet private key

# Network Configuration  
BASE_RPC_URL=https://base.llamarpc.com  # Base network RPC endpoint

# Smart Contract Addresses
INDEX_ADDRESS=0x1feb5976881a3cb7f55c7c87b52bda88c7a00a95  # Index contract
DATA_CONTRACT_ADDRESS=0x...  # Data contract for trade computation
AGGREGATOR_ADDRESS=0x...     # DEX aggregator contract

# API Configuration
SIGNALS_API_URL=https://your-signals-api.netlify.app  # Signal provider
SIGNALS_API_KEY=your_secret_key  # API authentication

# Trading Parameters
PROFIT_TARGET=5.0           # Profit percentage to trigger sell (5.0 = 5%)
GAS_BUFFER_ETH=0.005       # ETH to reserve for gas (0.005 = 5% of 0.1 ETH)
MAX_SLIPPAGE=200           # Maximum slippage (200 = 2%)
MIN_SIGNAL_STRENGTH=6      # Minimum signal strength (1-10 scale)

Environment Variable Details

Variable	Type	Description	Example
PRIVATE_KEY	string	Wallet private key (with 0x prefix)	0x1234...
BASE_RPC_URL	string	Base network RPC endpoint	https://base.llamarpc.com
INDEX_ADDRESS	address	Target index contract address	0x1feb...
DATA_CONTRACT_ADDRESS	address	Data contract for trade routing	0xabcd...
AGGREGATOR_ADDRESS	address	DEX aggregator for swaps	0xefgh...
SIGNALS_API_URL	string	Signal provider base URL	https://api.example.com
SIGNALS_API_KEY	string	API key for authentication	sk_live_...
PROFIT_TARGET	number	Profit % to trigger sell (5.0 = 5%)	5.0
GAS_BUFFER_ETH	number	ETH to reserve for gas	0.005
MAX_SLIPPAGE	number	Max slippage in basis points	200
MIN_SIGNAL_STRENGTH	number	Min signal strength (1-10)	6

Installation & Setup

1. Clone Repository

git clone https://github.com/yourusername/index-trading-bot.git
cd index-trading-bot
npm install

2. Configure Environment

cp .env.example .env
# Edit .env with your configuration

3. Deploy to Netlify

Option A: GitHub Integration

1. Push to GitHub:

git add .
git commit -m "Initial setup"
git push origin main

2. Connect to Netlify:

   • Go to netlify.com
   • "New site from Git" → Select repository
   • Build settings: npm run build / publish directory: .

3. Add environment variables in Netlify dashboard

Option B: Netlify CLI

npm install -g netlify-cli
netlify login
netlify deploy --prod
netlify env:set PRIVATE_KEY "0x..."
netlify env:set BASE_RPC_URL "https://base.llamarpc.com"
# ... set all environment variables

4. Verify Deployment

Check function endpoints:

• GET /api/bot-status - Bot status and configuration
• Function logs in Netlify dashboard
• Cron functions executing every 5/15 minutes

API Endpoints

GET /api/bot-status

Returns current bot status, balance, and position information.

Response:

{
  "bot": {
    "wallet": "0x...",
    "balance": "1000000000000000000",
    "indexAddress": "0x...",
    "profitTarget": 5.0
  },
  "position": "No position" | {...},
  "signal": "No signal" | {...},
  "timestamp": "2025-01-18T10:30:00.000Z"
}

POST /api/take-position

Manually enter a position with available balance.

Headers:

x-api-key: YOUR_SIGNALS_API_KEY

Response:

{
  "status": "position_taken",
  "txHash": "0x...",
  "amount": "950000000000000000",
  "indexAddress": "0x...",
  "timestamp": "2025-01-18T10:30:00.000Z"
}

POST /api/sell-position

Manually exit current position.

Headers:

x-api-key: YOUR_SIGNALS_API_KEY

Response:

{
  "status": "position_sold",
  "txHash": "0x...",
  "profitLoss": {
    "percentage": 7.5,
    "usd": "125.50",
    "eth": "0.045"
  },
  "soldValue": {...},
  "timestamp": "2025-01-18T10:30:00.000Z"
}

Trading Logic

Signal Processing (check-signals)

1. Position Check: Exit early if position exists
2. Signal Fetch: Get current signal from API
3. Buy Decision: Evaluate signal strength and type
4. Balance Check: Ensure sufficient ETH (minus gas buffer)
5. Trade Execution: Execute zapIn if all conditions met

Position Management (check-positions)

1. Position Fetch: Get current position with P&L
2. Profit Check: Sell if profit >= target percentage
3. Loss Handling: Hold position if in loss (never sell at loss)
4. Trade Execution: Execute zapOut for profit taking

Trade Execution

• Entry: Uses zapIn with ETH → index tokens via DEX aggregation
• Exit: Uses zapOut with index tokens → ETH via DEX aggregation
• Slippage: Configurable maximum slippage protection
• Gas: 12M gas limit with buffer for complex swaps

Monitoring & Debugging

Function Logs

netlify functions:log
# Or via Netlify dashboard → Functions → View logs

Common Log Patterns

=== CHECK SIGNALS FUNCTION START ===
Step 1: Checking for existing position...
Step 2: Fetching signals...
Step 3: Evaluating buy decision...
Step 4: Checking available balance...
Step 5: Entering position with X wei

Error Handling

• All functions include comprehensive error logging
• Failed trades return detailed error messages
• Network issues are retried automatically by Netlify

Security Considerations

Private Key Protection

• Never commit .env files to version control
• Use Netlify environment variables for production
• Consider using a dedicated trading wallet
• Rotate keys if compromised

API Security

• Protect SIGNALS_API_KEY as environment variable
• Use HTTPS-only endpoints
• Implement rate limiting if needed

Smart Contract Risks

• Audit contract addresses before deployment
• Start with small amounts for testing
• Monitor for unusual gas consumption
• Have emergency stop procedures

Troubleshooting

Common Issues

"Insufficient balance"

# Check wallet balance
curl https://YOUR_SITE.netlify.app/api/bot-status

# Verify GAS_BUFFER_ETH setting
netlify env:get GAS_BUFFER_ETH

"No signal" / "No buy signal"

# Test signal API directly
curl "https://YOUR_SIGNALS_API.netlify.app/api/signals?index=0x...&key=..."

# Check MIN_SIGNAL_STRENGTH setting
netlify env:get MIN_SIGNAL_STRENGTH

"Internal server error"

# Check function logs
netlify functions:log

# Verify environment variables
netlify env:list

Functions not executing

• Check netlify.toml cron expressions
• Verify successful deployment
• Check Netlify function dashboard

Development Mode

# Run locally
netlify dev

# Test individual functions
netlify functions:serve

Contributing

1. Fork the repository
2. Create feature branch (git checkout -b feature/amazing-feature)
3. Commit changes (git commit -m 'Add amazing feature')
4. Push to branch (git push origin feature/amazing-feature)
5. Open Pull Request

Risk Disclaimer

⚠️ AUTOMATED TRADING INVOLVES SIGNIFICANT RISK

• Smart Contract Risk: Bugs could cause loss of funds
• Market Risk: Volatile markets can cause substantial losses
• Technical Risk: Network issues, API failures, configuration errors
• Regulatory Risk: Trading regulations vary by jurisdiction

Recommendations:

• Start with small amounts
• Understand all code before deployment
• Monitor bot performance regularly
• Have emergency procedures ready
• Never risk more than you can afford to lose

License

MIT License - see LICENSE file for details.

Support

• Issues: Use GitHub Issues for bug reports
• Discussions: Use GitHub Discussions for questions
• Security: Report security issues privately

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