This arbitrage trading bot is designed to capitalize on price differences between decentralized exchanges (DEX) and centralized exchanges (CEX), specifically OKX. It monitors both buy and sell opportunities for the ETH/USDT trading pair.
- Python 3.7 or higher
- ccxt library
- web3.py library
- An OKX account with API access
- An Infura account for Ethereum network access
Before running the bot, ensure you have set the following:
- OKX API credentials (API key, secret key, and passphrase)
- Infura project ID
- Desired profit threshold (default is 1%)
- Trading amount (default is 1 ETH)
- Clone the repository
- Install required packages: pip install ccxt web3
Run the script using: python arbitrage_bot.py
The bot will continuously monitor for arbitrage opportunities:
- Selling ETH on OKX and buying on DEX
- Buying ETH on OKX and selling on DEX
- The bot includes proactive risk management by adjusting orders when market conditions change.
- It also handles partial fills on OKX by executing corresponding trades on DEX.
If you encounter any challenges:
- Verify your API credentials
- Ensure you have sufficient balance on both OKX and your Ethereum wallet
- Check your internet connection
The current version of the bot has several areas that require further implementation or refinement:
a. DEX Interaction: The 'execute_dex_trade' function is a placeholder and needs to be implemented with actual DEX trading logic.
b. Error Handling: While basic error catching is in place, more robust error handling and logging mechanisms should be implemented for production use.
c. Configuration Management: Consider implementing a configuration file or environment variables for easier management of API keys and other settings.
d. Advanced Order Management: Implement more sophisticated order management strategies, including dynamic adjustment of order sizes and prices based on market conditions.
e. Performance Optimization: The current polling method could be optimized, potentially by using websockets for real-time updates.
f. Additional Exchange Support: Extend the bot to support multiple CEXs for broader arbitrage opportunities.
g. Backtesting Capability: Develop a backtesting framework to evaluate and refine the trading strategy using historical data.
h. Risk Management: Implement more advanced risk management features, such as stop-loss orders and maximum drawdown limits.
i. User Interface: Consider developing a graphical user interface for easier monitoring and control of the bot.
j. Compliance and Legal: Ensure the bot's operations comply with relevant financial regulations and exchange policies.
This bot is for educational and research purposes. Always exercise caution and be aware of the inherent risks in cryptocurrency trading. It is not production-ready. Use at your own risk.