Write Simple BTC Quantitative Trading System Using Python in One Hour

Let the program help you make money

Jason Zhang


Photo by André François McKenzie on Unsplash

Disclaimer: This article is for education purposes only. I am only sharing my opinions with no guarantee of gains or losses. Your investments are solely your own responsibility. It is very important for you to conduct your own research or consult a financial adviser before you make any investment decisions.

As of this writing, Bitcoin price has crossed $19,000 and is expected to hit $20,000 in its 12-year history high by the end of 2020.

BTC-USD From Coindesk

In recent years, some people have used quantitative trading strategies to exchange cryptocurrency, and they’ve been getting satisfactory profits.
As a programmer, I will work with you to build a simple quantitative Bitcoin trading system.

What is Quantitative Trading

Quantitative trading consists of trading strategies based on quantitative analysis, which rely on mathematical computations and number crunching to identify trading opportunities.

— Investopedia

A typical quantitative trading system has several modules: Market Data Handler, Strategy Module, Backtesting Module, Order Module, Storage, etc.

A Typical Quantitative Trading System
  • Market Data Handler: Get market data and account from the Exchange.
  • Strategy Module: Based on market data and the algorithm send buy and sell command to order module.
  • Backtesting Module: Test and optimize a strategy using historical data.
  • Order Module: Receive buy and sell orders from the strategy module, package, and forward them to the exchange.
  • Storage/Log: Save data in the database and records operation information in the logging system.

As a beginner in quantitative trading, we will focus on Market Data Handler, Strategy, and Backtesting modules in this…