crypto-trader

A Python trading bot for Kraken that identifies momentum opportunities and manages positions with automated risk controls.

Strategy

Each run the bot:

1. Checks open positions — evaluates every held asset against the exit rules below and sells if triggered.
2. Scans the market — fetches all USD-quoted pairs on Kraken and filters to assets with:
   • 24h traded volume ≥ $1,000,000 (confirms the asset is liquid and active)
   • 24h price change between +5% and +10% (momentum window — enough movement, not yet overextended)
3. Buys qualifying assets — splits available USD balance equally across the top results (sorted by volume), up to max_positions concurrent holdings.
4. Re-scans if a position closed — freed capital is immediately put to work in the same run.

Risk management

Exit rules are checked in priority order on every run:

Rule	Default	Behaviour
Hard stop-loss	−12% from entry	Absolute floor. Protects against a gap-down before the trailing stop can react.
Trailing stop	−8% from peak	Follows the price upward. If an asset goes $100 → $130, the stop sits at $119.60. A reversal to $119.60 triggers a sell.
Take profit	+25% from entry	Locks in gains when the target is reached.
Time limit	72 hours	Exits stagnant positions so capital isn't tied up indefinitely.

All thresholds are in config.py and can be tuned without touching any other file.

Requirements

• Python 3.8 or newer
• A Kraken account with an API key that has Query Funds, Query Open Orders & Trades, and Create & Modify Orders permissions

Setup

Local / manual use

# Clone and enter the directory
git clone <your-repo-url> crypto-trader
cd crypto-trader

# Create virtual environment and install dependencies
bash setup.sh

# Add your Kraken API keys
nano .env

Ubuntu server (systemd — runs automatically on schedule)

sudo bash install.sh
sudo nano /opt/crypto-trader/.env    # add API keys

The installer copies the project to /opt/crypto-trader, creates a dedicated crypto-trader system user, and registers a systemd timer that runs at 09:00, 13:00, and 17:00 UTC daily.

Running

# Paper trading (no real orders — safe to run any time)
./venv/bin/python bot.py

# Live trading (real orders placed on Kraken)
./venv/bin/python bot.py --live

Always verify paper trading behaviour for at least one full cycle before switching to live mode.

Configuration

All settings live in config.py. The most commonly tuned values:

Setting	Default	Description
min_volume_usd	500,000	Minimum 24h USD volume to consider an asset
min_price_change_pct	3.0	Lower bound of the momentum window (%)
max_price_change_pct	15.0	Upper bound of the momentum window (%)
max_positions	5	Maximum concurrent holdings
trailing_stop_pct	8.0	Sell if price drops this % below its peak
hard_stop_pct	12.0	Sell if price drops this % below entry
take_profit_pct	25.0	Sell when this % profit is reached
max_hold_hours	72	Exit after this many hours regardless
paper_trading	True	Set to False for live orders

Scheduling

Systemd (Ubuntu server):

sudo systemctl start crypto-trader.timer       # enable schedule
systemctl list-timers crypto-trader.timer      # show next run time
journalctl -u crypto-trader.service -f         # stream logs
sudo systemctl start crypto-trader.service     # trigger a manual run

To change the schedule, edit systemd/crypto-trader.timer then:

sudo systemctl daemon-reload
sudo systemctl restart crypto-trader.timer

Cron (alternative):

crontab -e
# Add one or more lines, e.g. run at 09:00, 13:00, 17:00 UTC:
0 9,13,17 * * * /opt/crypto-trader/venv/bin/python /opt/crypto-trader/bot.py >> /opt/crypto-trader/bot.log 2>&1

Project structure

crypto-trader/
├── bot.py              # Entry point — orchestrates each trading cycle
├── config.py           # All tunable parameters
├── kraken_client.py    # Kraken REST API client (auth, tickers, orders)
├── scanner.py          # Scans market, filters by volume and price change
├── portfolio.py        # Tracks open positions, persists to positions.json
├── risk_manager.py     # Trailing stop, hard stop, take profit, time limit
├── setup.sh            # One-time local setup (venv + deps)
├── install.sh          # Full Ubuntu server install with systemd
├── systemd/
│   ├── crypto-trader.service   # Systemd service unit
│   └── crypto-trader.timer     # Systemd timer unit
├── requirements.txt
└── .env.example

State and logs

• positions.json — open positions, updated after every buy or sell. Safe to inspect at any time.
• bot.log — full run history including every scan result, order placed, and exit reason.
• On Ubuntu with systemd: journalctl -u crypto-trader.service also captures all output.

Disclaimer

This software is provided for educational purposes. Cryptocurrency trading carries significant financial risk. Always test thoroughly in paper trading mode before risking real funds. You are solely responsible for any trading decisions made by this bot.