Statistical Arbitrage Bot Build in Crypto with Python (A-Z)
What you'll learn
- Gain hands-on experience in developing a Statistical Arbitrage pairs trading crypto bot
- Automate and filter searches for all possible co-integrated pairs on a given exchange
- Learn what actually moves price in the markets
- Understand the use of metrics including hedge ratio, p-value, t-value and c-value
- Learn fundamental trading principles and gain a proven statistical edge
- Learn the optimal position size
- Get clarity on entry and exit signals
- Develop an automated bot that can place and manage limit and market orders automatically
- Learn backtesting techniques for optimal pair selection
- Learn how to calculate spread and Zscore for optimal entry and exit signals
- Basic knowledge of Python preferred but not required per appendix tutorials
- Very basic knowledge of cryptocurrencies required
As requested by the Crypto Wizards community, this course provides you with:
An intuitive understanding of trading principles in crypto (and other) markets
Optimal calculations for risk, position sizing and entry/exit signals
Everything you need to know to practically get started in Statistical Arbitrage
How to find edge in multiple places and stack as many odds in your favour as possible
Pairs trading concepts which can profit in upwards, sideways and downwards (all) market conditions
An understand of Statistical Arbitrage and associated metrics
An understand on how trading works on a Crypto Exchange
How to tap into exchange price information at lightening speed via WebSockets and REST API
Python code and walkthrough (line-by-line) for finding your own co-integrated statistical arbitrage trading pairs
Python code and walkthrough (line-by-line) for developing your own trading bot
Most retail traders never learn some of what you will come across here, either because those who understand the concepts have not taken the time to break this down so that anyone can follow, or because there is so much nonsense existing today that filtering through the noise can be challenging.
In this course, we aim to break down barriers so that absolutely ANYONE can understand and tap into the advantages that these techniques can provide. The lecturer, Shaun McDonogh, himself admits that he is not a math wiz, nor needs to be. Once you understand these principles, you can apply them anywhere.
We will be using the ByBit exchange (taking advantage of one major benefit offered by the exchange) to build and test our bot. At no point do we use real money for testing. Rather, we use the testate funds provided by the exchange for ensuring forward testing in a "live" testate environment.
IMPORTANT: This course is for educational purposes only. Nothing you learn in this course is promising favourable or adverse results. You will be learning known methods for calculating statistical arbitrage and building trading bots. How you test and implement this knowledge is up to you.
Who this course is for:
- Retail traders looking to gain a statistical edge in the crypto markets
- Beginner programmers looking for interesting Python projects related to trading
- Advanced traders looking for a proven strategy to add to their arsenal
"I care about having an idea that is unusual, finding hidden gems and exposing them for those who have left the world of hype and are looking for something more real. Rinse and repeat. My teaching is an outlet for myself to put ideas into action, helping others effectively along the way and sharing for those without the same level of experience. I keep falling into other ventures, but am always happiest and most content when returning back to the teaching initiatives."