Crypto Trading Bot Twitter – In this article, I will share how I built a Twitter trading bot to trade a cryptocurrency called DOGE every time Elon Musk tweeted something mentioning him. I will use NodeJS to query the Twitter API and then transact on FTX.
Everything Elon Musk touches turns to gold, including zombie coins. Within minutes every time he tweets about DOGE cryptocurrency, a massive upward movement starts.
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It’s up almost 100x this year on my entire portfolio and I had zero risk 😠I wanted a way to capture some of that potential without FOMO at the top.
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By following Elon’s Twitter account using the Twitter API and then buying a DOGE perpetual futures contract every time he tweets something. Of course, I’m not the first person to come up with this simple strategy.
The first step is to set up API keys for cryptocurrency exchanges and Twitter. I will be using FTX for this show.
If you already have a Twitter account, you can go to https://developer.twitter.com/en/portal/dashboard and create a developer account and register a new project/app. I had already installed the v1 API keys so I used those, but v2 should work as well.
I prefer doing this type of trade on FTX rather than Binance as the platform is more set up for active traders in my opinion.
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I created a sub-account to work with because I wanted to use relatively high margin and isolate the risk to a certain amount transferred to that sub-account.
I used the Twitter NPM module as a base to build. Before I start getting into the code, I just want to point out that everything is open source and all the code is available here: https://github.com//Twitter-Trading-Bot
The next step is to get the username of the person we want to follow, this is a numeric number that can be subtracted from the username ie @elonmusk > 44196397. There are also websites you can use to find this out manually, just Google “twitter user ID”.
Then I wanted to stream live data from its feed, as I think this would be faster than REST-based API requests (I haven’t tested this hypothesis).
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There are some quirks here that tweet.text actually contains a shortened version of the tweet and an error check has been included in the full version. This shows the basics of creating a stream that will run instantly when a new tweet is sent.
We can then search through the tweet text for relevant keywords, hash tags, and currency tokens that we want to trade.
I prefer not to use a library or wrapper for exchange integration and sign transactions manually. This adds a bit more complexity, but I think there is a security benefit to doing this.
I also wanted to execute a stop order that is very similar but uses the following endpoint and slightly different query parameters.
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I manually tested this on my own and lost a few bucks on the spread as both orders are market orders worth noting.
In my opinion, this is one of the rare trades where it makes sense to use high leverage. We will be in business for a relatively short time to really capture the initial interest and drop the first withdrawal.
I set up the account to use about 15x leverage, which puts the entire balance of each trade at risk. This combined with my lack of sentiment analysis means that if Elon tweets “Doge is over” I will almost certainly lose my entire sub account.
That being said from an EV perspective (how expected value is calculated) I think it’s a good bet, but… I want to control my risk as much as possible.
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The first step is to create a subaccount. This insulates the balance from deleting the entire account. It’s also very useful for testing because I can only deposit a small amount into the account and if there are bugs in my code, it can’t go wrong and I don’t waste all my funds on a huge DOGE position.
The second step was to create an exit plan. I decided to use a stop loss as it would limit the initial risk and then provide a dynamic level of profit when the price rises. I would expect a lot of volatility so some wiggle room is needed, but too much and the account will be bankrupt before the stop loss is triggered if things go south from the start.
I will probably over time add more sophisticated code to widen a position for a 60 second period and increase the size of the stop loss as the price rises so I can limit the downside risk but leave the profits to flow.
If you want to run this, you need to install nodeJS on your device or preferably on a server.
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There is an example configuration file that provides the basic configuration. Edit the fields and rename config-example.js to config.js
I strongly recommend that this code not be run for anything other than testing as it is not production ready. There will be bugs and weird and poorly handled exchange responses that can and will cost you money if you try to use this in production.
I made it available for educational purposes as an entry point for people to start using this type of script for social business.
If anyone wants to add to the code, improve it, test it, make it less like something that was created in an afternoon, feel free to submit a request.
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This twitter trading bot is for display only. It was put together in a few hours and is not fully tested or production ready code. Use it for educational purposes only and build something better if you want to use it for real money.
Do not use this script with your live trading account and if you ignore this and lose funds, don’t blame me
I ran the twitter trading bot from April 16th to April 19th while DOGE was the third most traded cryptocurrency on FTX and all the time Elon didn’t say a word about it. I’m an idiot that his lack of tweeting about it is a sign in itself and maybe he’s buying something.
I decided to let the test run and extend it to another side account to offer crypto tokens from popular crypto influencers. I started with a budget of $20 and ran it for 24 hours. The first night I had a problem because it was only following a few influencers. This was caused by a bug in the way the Twitter API uses a numeric ID followed by a user.id_str string, which is a completely different number. This morning I fired it up for a few hours while the bug was fixed before publishing this article.
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Executed a trade and manually closed it about half an hour later with a profit of $0.14. I would say that the influencer mention did not significantly affect the price of the property in this test.
There is a curve to the effectiveness of this strategy. The more engagement an influencer has, the better, and the lower the market value of the property, the better. A smaller influencer talking about Bitcoin will not move the price. For this reason, I will run this strategy in the future on special occasions where there is potentially significant market impact.
The code is not yet ready for production, but it is open source and can be used as a starting point if someone wants to use it for a more advanced social business application.
The next step will be to look at Uniswap’s new v3 code and prepare for the next big alt season, which I think will happen when Ethereum’s optimistic layer two solution is released and everyone starts looking again “Uniswap jams”. In such an environment, when altcoins are speculated with low cap and low liquidity, and influencers abandon this type of script could work very well.
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The newsletter appears several times a month when there is news or interesting news that needs to be discussed. All the content I produce is free, if you want to help please share this content on social media.
Disclaimer: Not a financial advisor, not a financial advisor. The content I create is to document my journey and for educational and entertainment purposes only. It is in no way investment advice. I’m not an investment or trading professional and I’m learning on my own while making a lot of mistakes along the way. Any code released is experimental and not production ready to be used for financial transactions. Do your own research and don’t gamble with money you don’t want to lose. Members of the crypto community have raised the issue of Twitter bots and urged the social platform to do something.
Twitter is a platform for community members to discuss different points of view on issues in the crypto space. On the other hand,
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Originally posted 2023-05-20 14:00:08.
