Building a Gate.io Trading Bot with Hyperforge - A Walkthrough in Pseudo Code
- aphexiontech
- Sep 7, 2024
- 4 min read
Updated: Sep 15, 2024
In this tutorial, we’ll walk through the core concepts behind building a trading bot using Hyperforge - Trading Bot Development Kit, a custom solution for integrating with the Gate.io exchange. This bot is designed to handle key tasks such as order management, slippage protection, and profit-taking. The tutorial will break down the workflow of the bot and explain the mechanisms with easy-to-follow pseudo code.
Table of Contents
Overview of the Hyperforge Trading Bot
Periodic Adjustment and Exchange Configuration
Handling Buy and Sell Signals
Managing Orders and Adaptive Slippage Protection
Taking Profits When Targets Are Reached
Price and Balance Calculations
1. Overview of the Hyperforge Trading Bot
Hyperforge acts as the backbone of the trading bot, connecting to the Gate.io exchange using the CCXT library. It listens for trading signals, places buy/sell orders based on market conditions, and implements mechanisms to manage risk and take profits.
This bot can be integrated with Sentrix Webhooks to automate trading actions based on alerts from TradingView. The Sentrix system dynamically scans thousands of strategies and always looks for the most optimal one, making it a powerful ally in triggering precise buy/sell orders.
The bot has the following responsibilities:
Placing and managing buy/sell orders based on signals from Sentrix Webhooks
Tracking trades and calculating average prices for precision in trading
Managing slippage and preventing unnecessary losses due to unfavorable market movement
Taking profit when a set target balance is reached
2. Periodic Adjustment and Exchange Configuration
At the beginning, key parameters are set for the bot. These parameters include profit targets, commission rates, slippage percentages, and how many positions to dedicate per trading pair.
Pseudo Code:
Define the initial balance to trade with.
Set the target profit percentage at which profits should be taken.
Define the threshold percentage to ensure some capital remains safe.
Check operational mode:
Calculate how much of the capital should be reserved, ensuring risk is managed properly.
3. Handling Buy and Sell Signals
The bot listens for buy or sell signals, which usually come from a webhook integration with TradingView or Sentrix Webhooks. Sentrix is a powerful dynamic indicator that selects the best strategy based on current market conditions. These signals trigger the bot to place orders.
Pseudo Code:
Receive a webhook signal containing the trading symbol (e.g., BTC/USDT), entry price, and the direction (buy or sell).
Parse the signal to extract:
The symbol to trade (e.g., BTC/USDT)
The entry price provided by the signal
The side (whether it's a buy or sell signal)
For a Buy Signal:
Fetch the order book data from the exchange for the trading pair.
Check if the signal price is favorable for placing a buy order.
If favorable, place a limit buy order with the calculated amount and price.
For a Sell Signal:
Fetch the order book data from the exchange.
Check if the signal price is suitable for placing a sell order.
If suitable, place a limit sell order.
This approach allows seamless integration with TradingView's alert system, where signals are received via Sentrix Webhooks and then converted into real trades.
4. Managing Orders and Adaptive Slippage Protection
The bot manages open buy and sell orders to ensure the number of orders remains optimal, while also using slippage protection to avoid significant losses if the market price moves unfavorably.
Pseudo Code:
Fetch all open orders from the exchange.
For each buy order:
If the number of buy orders exceeds the limit, cancel the lowest-priced buy order to optimize capital allocation.
For each sell order:
If the number of sell orders exceeds the limit, cancel the highest-priced sell order to prevent over-exposure.
Monitor unresolved trades (trades that haven't been sold yet):
If the price drops too far below the purchase price or too much time has passed since the order was placed, sell the asset to minimize potential losses.
This mechanism ensures the bot adapts to unfavorable market conditions and cancels orders when necessary, reducing exposure to risks.
5. Taking Profits When Targets Are Reached
Once the bot reaches its profit target, it takes action by selling all assets to realize the gains. The bot cancels all existing orders and ensures everything is converted back into the base currency (e.g., USDT).
Pseudo Code:
Calculate the target balance:
The target is calculated as the initial balance multiplied by the target profit percentage.
If the current total balance exceeds the target balance:
Cancel all open orders on the exchange to prevent conflicting trades.
For each asset in the portfolio:
Fetch the best available bid price from the order book.
Place limit sell orders for all available and locked assets at the best possible price.
Notify the user that profits have been successfully taken.
If the balance is below the target:
Wait for the balance to grow and keep monitoring the market.
This step ensures that profits are systematically taken once the set balance target is reached, avoiding unnecessary exposure to market fluctuations.
6. Price and Balance Calculations
The bot calculates the average price of trades and tracks available balances periodically. This ensures the bot has accurate information to use when placing new orders or when deciding to take profits.
Pseudo Code:
Function to calculate the average price of trades:
Fetch all trades for the specified symbol in the last time window (e.g., the last 30 minutes).
If trades are found:
Calculate the weighted average price of those trades.
If no trades are found, return 0 (no data available).
Function to fetch available balances:
Parse the balance data received from the exchange.
Extract the available balance for each currency (e.g., BTC, USDT).
Return the balance for the specific symbol being queried (e.g., BTC/USDT).
By dynamically fetching prices and balances, the bot ensures its actions are based on the most up-to-date market data, improving the precision of its trading decisions.
Conclusion
In this tutorial, we’ve broken down the key mechanisms that drive the Hyperforge Trading Bot Development Kit. This trading bot connects to the Gate.io exchange, listens to buy and sell signals via Sentrix Webhooks, manages open orders, adapts to slippage, and takes profits automatically when the target balance is reached.
The bot provides a modular and extensible solution for automating trading strategies, offering traders a hands-off approach to executing trades with precision and efficiency.
