Project Description
This project involves building an automated trading bot that allows users to execute trades on various financial markets, including stocks, cryptocurrencies, and forex. The bot aims to provide users with a seamless trading experience through sophisticated algorithms and real-time market analysis.
The "Automated Trading Bot" project aims to develop a scalable and efficient API that enables users to configure trading strategies, manage portfolios, and execute trades automatically. This API will support various front-end applications, including web and mobile interfaces.
In today’s fast-paced financial landscape, automated trading has become essential for investors seeking to capitalize on market opportunities. This project will create an API that empowers users to trade effectively while minimizing manual intervention.
User Interaction Overview:
User Registration and Authentication:
Sign Up: New users can create an account by providing their email and password. A confirmation email will be sent for account verification.
Login: Registered users can log in using their email and password. The API will support multi-factor authentication (MFA) for enhanced security
Portfolio Management:
View Portfolio: Users can view their current portfolio holdings and performance metrics.
Add/Remove Assets: Users can add or remove assets from their portfolio.
Trading Strategies:
Create Strategy: Users can create and configure trading strategies based on predefined indicators and conditions.
Edit Strategy: Users can modify existing trading strategies to adapt to market changes.
Trade Execution:
Place Trade: Users can execute trades manually or allow the bot to trade automatically based on configured strategies.
View Trade History: Users can view their past trades, including details such as entry/exit points and performance.
Objectives
Allow users to sign up, log in, and manage their accounts securely.
Enable users to create and manage trading strategies.
Facilitate automatic trade execution based on user-defined parameters.
Provide robust portfolio management and performance tracking features.
Ensure secure data handling and compliance with financial regulations.
Functional Requirements
User Management
Sign Up: Users can create an account using their email and password.
Login: Users can authenticate using their email and password.
Profile Management: Users can update their profile information.
Portfolio Management
View Portfolio: Users can see their current holdings and performance metrics.
Add Asset: Users can add new assets to their portfolio.
Remove Asset: Users can remove assets from their portfolio.
Trading Strategy Management
Create Strategy: Users can define new trading strategies using various indicators.
Edit Strategy: Users can modify existing strategies.
Delete Strategy: Users can remove strategies they no longer wish to use.
Trade Execution
Place Trade: Users can execute trades either manually or via automated strategies.
View Trade History: Users can access records of past trades, including performance details
Non-Functional Requirements
Scalability: The API should handle a growing number of users and trading activities.
Performance: The API should have low latency to support real-time trading and data retrieval
Security: Implement robust authentication and data protection measures.
Reliability: The API should ensure high availability, especially during peak trading hours.
Usability: The API should be easy to use and well-documented for users and developers.
Use Cases
User Sign Up and Login: New users create an account, and existing users log in.
Manage Portfolio: Users view and modify their portfolio holdings.
Create and Manage Strategies: Users configure trading strategies.
Execute Trades: Users execute trades based on strategies or manually.
View Trade History: Users review their past trades for performance analysis.
User Stories
As a user, I want to sign up for an account so that I can access the trading platform.
As a user, I want to log in to my account to manage my trading strategies and portfolio.
As a user, I want to create trading strategies that fit my investment goals.
As a user, I want to automatically execute trades based on my strategies to save time.
As a user, I want to view my trade history to analyze my performance over time.
Technical Requirements
Programming Language: Choose an appropriate backend language (e.g., Node.js, Python).
Market Data API: Integrate with market data providers for real-time pricing and trade execution (e.g., Alpaca, Binance).
Database: Use a database to store user data, trading strategies, and trade history (e.g., PostgreSQL, MongoDB).
Authentication: Implement JWT for secure user authentication.
API Documentation: Use Swagger or similar tools for API documentation.
API Endpoints
User Management
POST /signup: Register a new user.
POST /login: Authenticate a user.
GET /profile: Retrieve user profile details.
PUT /profile: Update user profile.
Portfolio Management
GET /portfolio: Retrieve current portfolio holdings.
POST /portfolio/assets: Add an asset to the portfolio.
DELETE /portfolio/assets/{id}: Remove an asset from the portfolio.
Trading Strategy Management
POST /strategies: Create a new trading strategy.
GET /strategies: Retrieve all trading strategies.
PUT /strategies/{id}: Update a trading strategy.
DELETE /strategies/{id}: Delete a trading strategy.
Trade Execution
POST /trades: Place a new trade.
GET /trades/history: Retrieve past trades.
Security
Use HTTPS to encrypt data in transit.
Implement input validation and sanitization to prevent security vulnerabilities.
Use strong password hashing algorithms like bcrypt.
Performance
Implement caching strategies for frequently accessed data.
Optimize database queries for efficient retrieval of portfolio and trade data.
Documentation
Provide comprehensive API documentation using tools like Swagger. Create user guides and developer documentation to assist with integration and usage.
Glossary
API: Application Programming Interface.
MFA: Multi-Factor Authentication.
Portfolio: A collection of financial assets owned by an investor.
Trade: The act of buying or selling financial instruments.
Appendix
Include any relevant diagrams, data models, and additional references.
