Cryptocurrency Trading Strategy With Data Extraction Technique
Posted on July 17, 2018 at 12:52 PM
There are various sources available on the net in order to get data for various cryptocurrencies. With the help of API, available data can be easily fetched from various sources like Quandl, Coinmarketcap, Poloniex etc.
Now, let us discuss few steps for how to fetch the data using Python.
– Firstly, let us import some necessary libraries.
– Next, we will fetch the data using the market function. Then we will get the names of various cryptocurrencies listed and we can save them in a list called coins list.
– After this, we create two dictionaries that will have the coin names as their keys and USD price and volume traded as their values. We add these values to the corresponding dictionaries with the time of fetching the data.
– Next, we have to calculate the time which has been taken to run through the currencies. As the runtime crosses one minute mark, your next data fetch will happen at the next minute. So, if the data processing takes more time, we may need to drop some currencies which are not important.
– Once the gathered data is with you, then it is very simple to fetch data every minute.
Cryptocurrency trading strategy:
In markets like Bitcoin, which is highly versatile, it is always advisable to trade with the latest trend. Now in the strategy, firstly we have to import the necessary libraries, then import the stored data, create the data frame, decide the time period to calculate the average return and volume. At the end, we will be able to cumulate the sum of strategy returns to visualize the strategy performance.