28 July 2013

So I have been working on this awesome new project of mine called bitmarket. It's a cool library that lets you automate bitcoin trading (and perhaps other currencies if I've modularized it right..) But at any rate the idea is that you can setup a couple algorithms of your own and then let this library handle all the rest. For example, I might think that if I buy bitcoins when the price is 4% below the 2 day moving average and its a Monday but sell when its 10% above the moving average and its Friday that I would strike it rich. Well this library allows you to test your hypothesis and possibly make (or break) your day!

Here is an example 'algorithm'/demo program that I made the other day. The API is still a little off from being finalized as there are some tweaks I would like to do.

#! /usr/bin/env ruby
# Copyright © 2013 Andrew DeMaria (muff1nman) <ademaria@mines.edu>
# All Rights Reserved.

require_relative 'bitmarket'

DATABASE_URL = "sqlite:////home/andrew/bitbite.db"
Bitmarket::History.setup DATABASE_URL
Bitmarket::Trader.setup DATABASE_URL

class SmartTrigger < Bitmarket::Trigger

	def trigger
		if b_meter > 1
			Bitmarket::MarketStrategy.new( :sell, BigDecimal.new("0.2"), :btc, get_current_value, :usd)
		elsif b_meter < 0 
			Bitmarket::MarketStrategy.new( :buy, BigDecimal.new("0.2"), :btc, get_current_value, :usd)
			Bitmarket::MarketStrategy.new( :nothing, nil, nil, nil, nil )

	def get_current_value

# build strategy
strategy = Bitmarket::Strategy.new
strategy.add( SmartTrigger.new, :smart_trigger )

# build analyzer
analyzer = Bitmarket::Analyzer.new( strategy )

# create bank
bank = Bitmarket::Bank.new( {usd: 100, btc: 2} )

# build trader
trader = Bitmarket::LoggerTrader.new( bank )

# final step
bit = Bitmarket::Bitmarket.new

bit.start_analyzing( analyzer, 60)
bit.start_trading( trader )



Eventually I would like to make a DSL (Domain Specific Language) for it so that it takes care of the setup and tear down process and so that the language for the triggers is simple and straight forward, but for now this will have to suffice.

Although its close to being able to sync up with the MtGox bitcoin exchange, I am testing it extensively and trying to create my own good algorithms :) As you can see, right now it will only log trades and use a top level bank class that is not hooked up with the MtGox API, but again this is in the tubes!

The only remaining question becomes… do I go open source? On one hand it would be nice to get some more contributors on board to expand and test it. Yet what if it becomes popular enough that it stablizes the bitcoin currency and I can no longer make a profit off its volatility? Or maybe this could expand to be compatible with other currencies and become popular with more serious currency traders? You never know…

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