How to Run a Cryptocurrency Trading Bot On Kraken
Sat Oct 07 2023
Automating your cryptocurrency trading strategy with a crypto trading bot can give you a significant edge in the market. Here's a quick guide on how to configure and run a Kraken trading bot on Aesir.
Cryptocurrency markets are notoriously volatile, which makes them arguably one of the best markets to run a for algo trading. Due to their inherent volatility, crypto algo trading bots 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 Kraken Trading Bot
Aesir’s Kraken 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 Kraken platform and it’s also available on Binance, Binance US, Kraken Pro, 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 cryptocurrency algorithmic trading strategy
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.
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 Kraken Exchange API
Naturally, in order for the trading bot to be able to manage your portfolio on your behalf, you will be required to generate an Kraken API Key. The process for doing this is relatively straightforward:
- Log Into your Kraken Account
- On the account dropdown menu in the top right corner select API
- Once on the API Page, click on Add Key.
Note: For security purposes it’s strongly advised to only give your API Key the permissions that it will require. Aesir will NOT ask for access to Withdraw or Deposit funds on your behalf so keep these options disabled.
If everything looks good, click Generate Key. Note that you will only be able to see the private key once so make a note of it when it’s first presented to you, otherwise you will need to repeat the process.
After obtaining the key, integrate it into your Aesir profile by selecting Add Exchange, choosing Kraken, and entering the required information.
In order to use your new Kraken API key simply navigate to to My Strategies on the Aesir app and click Start on a crypto trading bot that you wish to run. You’ll see a modal asking you to select an API Key to run it on. The great thing about the way our algorithmic crypto trading bots are built is that they are completely credential agnostic. Any crypto trading bot you build can be ran on any exchange that we support, with a single click.
Risk Management and Refining your algo crypto trading bot
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 standalone 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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