How to Run a Cryptocurrency Trading Bot On Coinbase Pro

Thu Sep 28 2023

Coinbase cryptocurrency trading bot

Cryptocurrency markets are notoriously volatile, which makes them arguable the best market to run a trading bot on. Due to their inherent volatility, trading bots on crypto markets have the potential to make significantly higher returns compared to stock or other markets, but it’s not without risk.

Properly configuring a crypto trading bot can mitigate a lot of the risk associated with cryptocurrency markets.

Getting Started With a Coinbase Trading Bot

Aesir’s Coinbase Trading Bot, initially recognized for its volatility trading prowess, has evolved into a versatile trading tool, capable of executing a variety of trading strategies on the Coinbase platform and it’s also available on Binance, Binance US, Kraken, and more exchanges to be added soon! Whether you are a day trader looking for short-term gains or an investor with a long-term perspective, Aesir allows you to build and automate robust trading strategies with minimal effort.

Building your first crypto trading bot with Aesir

Before you let the bot take the wheel, it’s essential to set up a strategy. Aesir’s interface allows for detailed customization. You can define how much to spend per trade, the maximum number of open orders, and outline your exit strategies. These parameters provide a framework within which the bot operates, allowing it to act as an extension of your trading philosophy.

To get started create an account and navigate to Create New Strategy page. Toggle the complex builder on for more sophisticated strategies, or work with the default DCA-only mode. With the complex builder enabled, you will see more configuration options for your crypto trading bot. Hover over each tooltip to see exactly what each property does.

Coinbase trading bot setup

Starting with a defined strategy is crucial. Observing its performance and adjusting the settings in real-time enhances the bot’s effectiveness over time, making it a powerful ally in crypto trading.

Seamless Integration with Coinbase API Key

Naturally, in order for the trading bot to be able to manage your portfolio on your behalf, you will be required to generate an Coinbase API Key. The process for doing this is relatively straightforward:

Coinbase API Settings

After obtaining the key, integrate it into your Aesir profile by selecting Add Exchange, choosing Coinbase, and entering the required information.

Adding Coinbase to Aesir

Risk Management and Strategy Refinement

Aesir not only provides a platform for automated trading but also offers features crucial for risk mitigation, like the customizable Trailing Stop Loss. This dynamic feature adjusts your stop loss levels as asset prices fluctuate, providing a safety net for your investments.

Aesir has a unique approach to creating logic for your crypto trading bot. We call it “Logic Layers”. They act as stand-alone instructions that tell the bot when to place an order, based on indicators, volatility, or other signals. They are “Layers” because you can stack multiple bits of logic on top of one another, creating truly unique signals that no other algorithmic crypto trading platform will allow to create.

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