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The first go at a stock trading bot using Alpaca API

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stonkBot

The first go at a stock trading bot using Alpaca API

This is also my first proper software project, so the code is by no means pretty, organized well, optimized, etc. because I'm still learning a bunch of stuff (and git too)

This is meant for relatively low speed, non-day trading with stocks (i.e. having less than $25k to throw around). No options, mutual funds or anything more complicated than individual companies using this algorithm.

If you've got some misgivings about throwing real money into it, there's a paper trading option in Alpaca where you can pretend you're rich and try it out anyways (maybe you don't have to pretend. Idk, I'm not here to judge) - this option can be set in the settings.config file.

Don't be afraid to change things around (especially in the settings file): nothing you do can break it so bad that a new pull can't fix it.

How To Run

System Requirements

*may potentially be issues with the time.sleep() function operating off the system clock which may change depending if the computer is active or not

Setup

I use a raspberry pi connected directly to the router via ethernet cable, but any system will do provided that it runs nearly 24/7 (Windows seems to have issues, see above)

  1. Download the repo
  2. Move the stockStuff folder outside the repo to create the folder structure as seen below
  3. Create Alpaca account, populate keys in apikeys.txt, and set the desired isPaper value in alpacafxns.py (isPaper=0 is live trading, isPaper=1 is paper trading)
  4. Run and install any missing python modules (suggest also installing "screen" or "tmux" package if running on raspberry pi)
  5. Run continuously and wait (it works best if left alone other than to check for errors and provide some masochism)
  6. ???
  7. Profit

API Keys and Folder Structure

The apikeys file has the actual keys removed for the REST APIs - if you want to try it out, you will need to get your own Alpaca keys and populate the key file - The alphaVantage keys are no longer necessary due to updates to use the nasdaq api (however, if you decide to poke through the Depreciated Functions, you will need it there).

The overall folder structure should look something like this*:

./
|
+-stockStuff/
| |
| +-stockData/
| +-apikeys.txt
| +-latestTrades.json
|
+-stonkBot/ (this repo)
  |
  +-etc...

*The root folder name does not matter. The stockStuff folder needs to be moved from the repo to the location shown above

File Description

stonkBot.py - The main file to run - this was more useful when testing a number of functions all located in alpacaalgos.py, however it now serevrs as a clean/simple file to run everything

alpacaalgos.py - Contains the logic and error checking for actually buying and selling stocks

alpacafxns.py - Functions that require an Alpaca API query

otherfxns.py - Other functions that do not require an Alpaca API query (i.e. functions that query the NASDAQ API, or provide the logic to determine which stocks to buy)

stonkBot.config - config file for settings in the files listed above. Formatted as json, double spaces indicate which file it's mostly used in in the heirarchy (order specific to the files listed above)

stockStuff/ - contains data that won't be synced with the repo (api keys, latest trades, and stock histories (these are cleared every Friday evening)) - the folder and its contents needs to be moved to the location shown above for the program to work

apikeys.txt - Contains the API keys used for Alpaca and AlphaVantage - the file in the repo should be filled in with your information

latestTrades.json - Contains the stock name and the latest trade date and type for the stock

Depreciated Functions, etc/ - Contains old functions and ideas for algorithms that are no longer in use (either tested to be not profitable, or determined to be too simplistic - in my opinion, good for research and ideas, and that's about it)

Running and Output Interpretation

Depending on how you have your file permissions set, this may need to run as sudo in order to read/write the stockStuff files

The output should look something akin to this:

Sample Output

On the first day, there will be no tradable stocks, 20 minutes before market close, a thread to start getting stocks to buy will run (if you have sufficient buying power), then 10 minutes before market close, it will start to buy stocks - the times can be changed in the settings file, but the time to check for stocks should be at least 10-15 minutes more than when to buy the stocks

After the first day, assuming you have stocks held, it will show something similar to above, and will check to sell the listed stocks throughout the day if they reach one of the trigger points.

Generally it seems that it takes about 5 weeks (+/- 3 weeks) after the initial jump to jump a second time.

From testing between 2020-07-14 to 2020-11-23, I have gotten an average growth rate of 0.65%/day with a standard deviation of 3.48%

Daily Returns

External Resources

Alpaca

MarketWatch Stock Screener

Stocks Under $1

AlphaVantage

NASDAQ API Documentation

Issues & Enhancements

If you are encountering issues, make sure to pull the latest version, it is under active delopment, so things change quickly (especially over the weekends).

if the power goes out for a while while using this (like mine did), I'd suggest finding a way to sell everything before the portfolio value starts dropping (like mine did)

Shortterm resolutions:

  • Scrape web for other likely gainers, and add to gainers list (see stonk2 repo)
  • Add timer or other ability to check how close a jump is from the target sell point (if it starts to fall, sell before falling too far)

Midterm resolutions:

  • Add master/slave relationship to allow it to run on multiple computers in the event of the primary program going down (add redundancy)
  • Make config file more readable (not json)
  • Allow for use with multiple algorithms on a single account

Longterm resolutions:

  • Record trade history and give performance analytics
  • Add some basic machine learning to improve trades over time

Disclaimer

I do not claim to be a financial expert and cannot be held accountable for any losses you may incur as a result of using this software

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