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An automated trading bot for conducting Pairs Trading on DYDX.

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Automated Pair Trading on DYDX (V3)

Screenshot 2023-12-11 at 1 52 27 AM

Development Stage on Sepolia, ETH Testnet:

[Stage 1] ✅

  • Set up connections to DYDX
  • Place Market Order
  • Abort All Orders

[Stage 2] ✅

  • Construct Cointegrated Pairs
  • Store Cointegrated Pairs
  • Create Entry Conditions
  • Create Exit Conditions

[Stage 3] ✅

  • Manage Existing Trades
  • Open Positions
  • Test Operation

[Deployment] ✅

  • Telegram Messaging
  • AWS Cloud Deployment
  • To receive Bot Updates and view current status, please go to Telegram and visit @howard_dydx_bot

[Usage Improvements]

  • Consider migrating onto exchanges for better liquidity and stable developing environments
  • Adjust formula and constants to calculate more rigorous hedge ratio, half-life, and other parameters
  • Adjust capital allocation rules following the Kelly Criterion
  • Adjust exit rules
  • Build a UI (React, FastAPI, Telegram)
  • Add ML for position sizing (eg. XGBoost to define the confidence of the model given specific trades for determining the amount of capital that should be used)

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An automated trading bot for conducting Pairs Trading on DYDX.

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