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Description:

krakenrebalancebot 1.0.0

Welcome to the Spot rebalance bot for the Kraken Cryptocurrency Exchange 🐙

⚠️ This is an unofficial trading bot that performs buys and sells
on the Kraken cryptocurrency exchange using Python.

Backend to access the Kraken API: python-kraken-sdk

📌 Disclaimer
There is no guarantee that this software will work flawlessly at this or
later times. Of course, no responsibility is taken for possible profits or
losses. This software probably has some errors in it, so use it at your own
risk. Also no one should be motivated or tempted to invest assets in
speculative forms of investment. By using this software you release the
author(s) from any liability regarding the use of this software.
It is not certain that this software will ever lead to profits.

📝 The Strategy
This algorithm can buy and sell one or more Spot assets without leverage.
The goal is to hold a certain amount of each base currency so that, for
example, there is always about 1000worthofBTCintheportfolio.IfthepriceofBitcoinincreasessothatthereisnow1050 worth of
Bitcoin in the portfolio, the excess 50issold.IfthepriceofBitcoinfalls,sothattheBitcoinintheportfolioareonlyworth950,
the algorithm buys Bitcoin, to hold a value of about $1000 in Bitcoin
in the portfolio again.
The algorithm checks the price range every 6 hours by default. The
margin, from how many percent price difference the algorithm becomes
active, can also be adjusted.
Actions can be logged on the command-line using the logging module with
active INFO-level and can also be sent to a telegram bot.

⚙️ Quick start and configuration
0. Check the source code of this algorithm on GitHub and read the README.md carefully

https://github.com/btschwertfeger/Kraken-Rebalance-Bot

1. Install the Python module:
python3 -m pip install kraken-rebalance-bot

2. Register at Kraken and generate API keys with trading access:

https://www.kraken.com/u/security/api

3. (optional) Create a Telegram Bot to get notified when the algorithm takes action

Create a bot using @BotFather
Write down/remember the token
Start @RawDataBot
and write down your personal chat_id

4. Setup the configuration and start the algorithm
An example configuration can be found in example_config.json and looks like
this:
{
"base_currency": ["ETH", "XBT"], # base asset(s) to maintain
"quote_currency": ["USD", "USD"], # quote asset(s) to trade with
"target_quantity": [500, 500], # how many of the base to hold (value in quote)
"quote_to_maintain": [200, 200], # freezed quote
"margin": [0.035, 0.035], # buy/sell threshold
"lowest_buy_price": [1000, 15000], # don't buy below this price
"times": ["06:00", "18:00"], # has no effect if use_build_in_scheduler is true
"use_build_in_scheduler": false, # if set to false, the script will only run once
"demo": true, # set to false to enable trading
"telegram": { # optional to get notified via telegram
"token": "telegram-bot-token",
"chat_id": "your-telegram-chat-id"
}
}

In the following a minimal working example is shown that uses this strategy
to hold a target_quantity of 500ofETHand500 worth of XBT (as in the
example config above). Both are traded against USD. The demo key must be
set to False to enable the trading functionality. Of course, this also works
with only one asset, too.
rebalance \
--api-key "your-kraken-api-key-here" \
--secret-key "secret-key-here" \
--config config.json

Note: If use_build_in_scheduler is enabled, there will be no output until
the time is one of times.

📖 Configuration

Key
Type
Description

base_currency
list[str]
List of base currencies to trade and hold.

quote_currency
list[str]
List of quote currencies to trade the base currency with.

target_quantity
list[float] | list[int]
Defines how much of a base currency should be held. This value is the worth of the base currency in quote currency.

quote_to_maintain
list[float] | list[int]
How much of quote currency should not be touched in the portfolio.

margin
list[float]
Rebalance levels e.g. 0.035 = 3.5%: at a change of 3.5% the algorithm will buy or sell the missing/surplus quantity

lowest_buy_price
list[float]
(optional) The bot will not buy if the price falls below this price to avoid catching a falling knife. Acts Kind of stop loss, but without selling.

times
list[str]
(optional, default: ['00:00', '06:00', '12:00', '18:00']) At which time the bot should check the balances.

use_build_in_scheduler
bool
(optional, default: False) Checks the balances once and exits if set to False. Otherwise the program will run forever and check the balances at the specified times

demo
bool
Trade or not sample trade output. Set to True if you know what this algorithm does.

telegram
{'chat_id': str, 'token': str}
(optional) Specify token and chat id to get notified when the bot does something.

If use_build_in_scheduler is set to false, the program is executed once
and ends after the iteration over all assets. This offers the possibility to
create own scripts, which execute this algorithm at individual times
(e.g. using cron).

📍 Notes

Make sure to always have enough quote currency in your Kraken portfolio. Too
low target_quantity values can cause the bot not to trade or even crash.
Therefore, pay attention to the minimum order sizes.

Example situation:

minimal order size of ETH is 0.01

price of ETH: $1300

margin is set to 0.04

target_quantity is 200

what will happen:

If your actual holdings of ETH is 192thebottriestobuyEthereumwithavolumeof8 because 200−200 * 0.04 will trigger the buy
order. But the minimum order size of Ethereum is 0.01 ETH
(see here),
and with a price of 1300=>0.01ETHequals13 so: 13<8 will
raise an error.
So make sure that the minimum order sizes of the respective assets
are consistent with the margin value and the target_quantity.
The example would work if the targe_quantity is set to 500,
because 5000.04=20 which is larger than 13000.01=13.
Also make sure that there is enough quote currency, otherwise the
bot cannot buy anything.

This strategy is one of the simplest and most basic approaches for trading
cryptocurrencies. For this reason, it should be noted here that this does not
necessarily lead to profits. Before running such an algorithm, everyone
should be clear about what products are being traded, what these products are
for in the first place, and what makes them valuable. Even the best companies,
stocks, materials, and also cryptocurrencies can become worthless from one day
to the next, so everyone should do their own research and make their decisions
based on these results.

It has been decided here not to present any material regarding the profitability
of this algorithm, as this could lead you to make your decisions based on my
successes and failures. What works once or over a long period of time does not
necessarily work in the future. But please let me know what you think about this
basic algorithm and what could be improved.

For any problems or suggestions - please open an issue.

🆕 Contributions
… are welcome!
🔭 References

https://python-kraken-sdk.readthedocs.io/en/stable