CoinbaseBot

Summary

CoinbaseBot is a project which autonomously trades Crypto currency on Coinbase. It uses the Coinbase Advanced API.

Functionality

The bot uses a simple strategy to buy when the market is down, holds the coins, and sells when a certain profit level is reached or when the coin is held longer than a week, accepting losses but freeing liquidity.

The following rules apply:

• A coin is bought when the current market price is down for a configurable percentage (purchaseDropPercent e.g. 3.0 %) compared to 24 hours before
• A configurable portion of the cash currency USDC is being used per initial purchase (useFundsPortionPerTrade e.g. 0.045 meaning 4.5%)
• The bot buys as many different currency as defined in the configuration (maxHeldCoins e.g. 4)
• The current market price for every coin is checked every 15 seconds
• If the market price falls below the purchase price the bot tries to average down the purchase price by buying the same amount of the held coin at a lower price. Multiple levels of averaging down stages can be configured (averageDownSteps)
• The bot records reached profit levels per held coin. These levels are configurable (profitLevels)
• If the market price of a held coin drops below the previous profit level and if this level is equal or higher than the configurable minimum profit level (minimumProfitLevelForRegularSale), the bot sells the coin, cashing in the profit.
• If a coin is held longer than a week and the current price is below the average purchase price, the bot sells the coin accepting the following losses:
  • after 1 week with 0% profit/loss
  • after 2 weeks with 1% loss
  • after 3 weeks with 2% loss
  • and so on. This can be configured with negativeProfitLevels.
• The bot always uses the average purchase price for a coin, when comparing against market prices. For example
  • A coin was bought for 100 UDSC
  • The market price falls to 97 USDC (3% to the initial purchase price) triggering a second purchase of the same coin (averaging down). The average purchase price is now 98 USDC.
  • The market price falls to 95 USDC (5% to the initial purchase price, but but less than 5% to the average purchase price) NOT triggering a third purchase of the same coin.
  • The market price falls to 92,15 USDC (5% to the average purchase price) triggering a third purchase of the same coin (averaging down). The average purchase price is now 95,075 USDC.
  • The market price rises to 96,03 USDC (more than 1% above the average purchase price), not triggering a sale, because this coin was averaged down 2 times but not 3 times.
  • The market price rises to 98,878 USDC (4% above the average purchase price). This profit level is recorded.
  • The market price falls to 97,356 UDSC (less thank 2,5% above the average purchase price). The bit sells the coin, because the market price dropped below a previously reached profit level, and this level is the minimum level for regular sale.

Configuration

you need a config.json file. I am using these values. Play with them and find the values that fit best for your trading expectations:

{
  "apiKey": "organizations/xxx/apiKeys/yyy",
  "apiSecret": "-----BEGIN EC PRIVATE KEY-----\nxxxyyyzzz\n",
  "portfolioId": "123-456-789",
  "coins": ["BTC", "SOL", "ETH", "XRP", "DOGE", "HBAR", "SUI", "XLM", "ADA", "AVAX", "LINK", "DOT", "BCH", "UNI", "LTC", "NEAR"],
  "purchaseDropPercent": 3.5,
  "maxHeldCoins": 4,
  "useFundsPortionPerTrade": 0.04,
  "profitLevels": [0.0, 1.5, 3.0, 4.0, 5.0, 6.0, 7.0, 8.0, 9.0, 10.0, 11.0, 12.0, 13.0, 14.0, 15.0, 16.0, 17.0, 18.0, 19.0, 20.0],
  "negativeProfitLevels": [1.0, 2.0, 3.0, 4.0, 5.0],
  "averageDownSteps": [0.0, 4.0, 6.0, 8.0],
  "minimumProfitLevelForRegularSale": 2,
  "takerFeePercentage": 0.4,
  "logLevel": "INFO",
  "timeZone": "Europe/Berlin"
}

Logging and persistence

The bot logs everything matching the configured log level into a file called trading.log. Log output below the configured log level it displayed on the comman line when starting the bot. The currently held assets are stored in a file called currentAssets.json.

Building and starting

Switch to the CoinbaseBot repository and build the main project with

mvn clean install

You can start it with

java -jar target/CoinbaseBot-1.0-SNAPSHOT-jar-with-dependencies.jar

It is recommended to use a tool to put the process into the background such as screen in order to leave the shell without stopping the bot.

Contributions

You are welcome to report issues or submit PR.