| Name | kraken-infinity-grid JSON |
| Version |
1.0.1
JSON |
| download |
| home_page | None |
| Summary | Infinity grid trading algorithm for the Kraken cryptocurrency exchange. |
| upload_time | 2025-01-26 14:01:50 |
| maintainer | None |
| docs_url | None |
| author | None |
| requires_python | >=3.11 |
| license | Custom License Agreement Version 2.0, January 2025 TERMS AND CONDITIONS FOR USE, REPRODUCTION, AND DISTRIBUTION 1. Permission for Personal Use You are allowed to use, modify, and distribute this software for personal and non-commercial purposes. This includes the right to modify the code and share it with others, provided the terms outlined in this license are met. 2. No Commercial Use Companies and other organizations are prohibited from using, modifying, or distributing this software for commercial purposes without explicit written consent from the author. Commercial use includes any activity that directly or indirectly generates revenue or is intended for commercial advantage. 3. Attribution Requirement If you use, modify, or distribute this software in any public capacity, you must provide clear and visible attribution to the original author and owner. This attribution should include the author's name and a link to the original project repository. 4. Request for Commercial Use For any commercial use, you must contact the author to negotiate a separate agreement. Commercial use is only permitted after entering into a custom contract with terms agreed upon by both parties. 5. Disclaimer of Liability This software is provided "as is", without any warranties of any kind, either express or implied, including but not limited to the warranties of merchantability, fitness for a particular purpose, or non-infringement. In no event shall the author be liable for any claim, damages, or other liability, whether in an action of contract, tort, or otherwise, arising from, out of, or in connection with the software or the use or other dealings in the software. 6. Governing Law This license shall be governed by and construed in accordance with the laws of Germany. 7. Contributor Rights By contributing to this project, contributors agree that they waive any rights to attribution or ownership of their contributions. All contributions become the sole property of the original author and owner. Contributors have no rights to require their names to be included in any references or credits related to this software. END OF TERMS AND CONDITIONS Copyright 2025 Benjamin Thomas Schwertfeger contact@b-schwertfeger.de https://github.com/btschwertfeger |
| keywords |
crypto
trading
kraken
exchange
api
|
| VCS |
|
| bugtrack_url |
|
| requirements |
No requirements were recorded.
|
| Travis-CI |
No Travis.
|
| coveralls test coverage |
No coveralls.
|
<h1 align="center">Infinity Grid Trading Algorithm for the Kraken Exchange</h1>
<div align="center">
[](https://github.com/btschwertfeger/kraken-infinity-grid)
[](https://shields.io/)
[](https://pepy.tech/project/kraken-infinity-grid)
[](https://github.com/astral-sh/ruff)
[](https://mypy-lang.org/)
[](https://github.com/btschwertfeger/kraken-infinity-grid/actions/workflows/cicd.yaml)
[](https://app.codecov.io/gh/btschwertfeger/kraken-infinity-grid)
[](https://securityscorecards.dev/viewer/?uri=github.com/btschwertfeger/kraken-infinity-grid)
[](https://www.bestpractices.dev/projects/9956)
[](https://github.com/btschwertfeger/kraken-infinity-grid/releases)
[](https://pypi.org/project/kraken-infinity-grid/)
[](https://kraken-infinity-grid.readthedocs.io/en/stable)
[](https://doi.org/10.5281/zenodo.14735203)
</div>
> ⚠️ **Disclaimer**: This software was initially designed for private use only.
> Please note that this project is independent and not endorsed by Kraken or
> Payward Ltd. Users should be aware that they are using third-party software,
> and the authors of this project are not responsible for any issues, losses, or
> risks associated with its usage. **Payward Ltd. and Kraken are in no way
> associated with the authors of this package and documentation.**
>
> 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.
The kraken-infinity-grid is a trading algorithm that uses grid trading
strategies that places buy and sell orders in a grid-like manner, while
following the principle of buying low and selling high. It is designed for
trading cryptocurrencies on the [Kraken](https://pro.kraken.com) Spot exchange,
is written in Python and uses the
[python-kraken-sdk](https://github.com/btschwertfeger/python-kraken-sdk) library
to interact with the Kraken API.
The algorithm requires a PostgreSQL or SQLite database and can be run either
locally or in a Docker container (recommended). The algorithm can be configured
to use different trading strategies, such as GridHODL, GridSell, SWING, and
cDCA.
While the verbosity levels of logging provide useful insights into the
algorithms's behavior, the Telegram notifications can be used to receive updates
on the algorithms's activity and exceptions. For this the algorithm requires two
different Telegram bot tokens and chat IDs, one for regular notifications and
one for exception notifications (see [Setup](#Setup) for more information).
Documentation:
- https://kraken-infinity-grid.readthedocs.io/en/latest/
- https://kraken-infinity-grid.readthedocs.io/en/stable/
## 📚 Fundamental concepts
`kraken-infinity-grid` is a sophisticated trading algorithm designed for
automated cryptocurrency trading using a grid strategy. This approach is
particularly effective in volatile markets, where frequent price fluctuations
allow for consistent profit opportunities through structured buying and selling
patterns.
### 📈 The core idea: Grid trading
At its essence, grid trading aims to capitalize on market volatility by setting
a series of buy and sell orders at predefined intervals. The algorithm operates
within a "grid" of prices, purchasing assets when prices dip and selling them as
prices rise. This systematic approach helps in capturing small gains repeatedly,
leveraging the natural oscillations in market prices.
<div align="center">
<figure>
<img
src="doc/_static/images/blsh.png?raw=true"
alt="Buying low and selling high in high-volatile markets"
style="background-color: white; border-radius: 7px">
<figcaption>Figure 1: Buying low and selling high in high-volatile markets</figcaption>
</figure>
</div>
_All currency pairs mentioned here are for illustrative purposes only._
### 📊 Key Elements of Grid Trading
1. **Intervals**: Unlike fully static systems, `kraken-infinity-grid` uses
fixed intervals that shift up or down based on price movements, ensuring
continuous trading and avoids manual interactions. This flexibility is
crucial for maintaining profitability in diverse market environments.
2. **Volatility Advantage**: High volatility is a friend to grid traders. The
more the price oscillates, the more opportunities arise to buy low and sell
high. The algorithm thrives in such conditions, with each price movement
potentially triggering a profitable trade.
3. **Consistent Position Sizing**: Each trade involves a consistent volume in
terms of the quote currency (e.g., $100 per trade). This uniformity
simplifies the management of trades and helps in maintaining a balanced
portfolio.
### 📉 Risk Management and Reinvestment
1. **Risk Mitigation**: The algorithm inherently incorporates risk management by
spreading investments across multiple price levels and maintaining almost
consistent trade sizes. This diversification reduces the impact of adverse
market movements on the overall portfolio.
2. **Reinvestment Mechanism**: Accumulated profits can be reinvested, enhancing
the trading capital and potential returns. The algorithm automatically
adjusts buy and and places sell orders to reflect the increased capital, thus
compounding growth over time.
## 📊 Available strategies
Each of the following strategies is designed to leverage different aspects of
market behavior, providing flexibility and adaptability to traders depending on
their risk tolerance, market outlook, and investment goals.
### `GridHODL`
The _GridHODL_ strategy operates on a predefined grid system where buy and sell
orders are placed at fixed intervals below and above the current market price,
respectively. This strategy is designed to capitalize on market fluctuations by
buying low and selling high, ensuring gradual accumulation of the base currency
over time.
Technical Breakdown:
- **Order Placement**: The algorithm dynamically adjusts $n$ buy orders
below the current market price. For example, with a 4% interval, if the
current BTC price is $50,000, the first buy order is set at $48,000, the
second at $46,080, and so on.
- **Execution**: Upon execution of a buy order, a corresponding sell order is
immediately placed at 4% above the purchase price respecting a fixed quote
volume. This creates a cycle of continuous buying and selling, with each cycle
aiming to yield a small portion in the base currency.
- **Accumulation**: Unlike traditional trading strategies, GridHODL is designed
to accumulate the base currency gradually. Each buy order slightly increases
the holdings, while the fixed order size in terms of quote currency (e.g.,
$100) ensures consistent exposure.
This strategy is particularly effective in sideways, slightly, and high volatile
markets, where frequent price oscillations allow for regular execution of the
grid orders. Accumulating the base currency over time can lead to significant
gains, especially when prices rise after a long accumulation phase.
### `GridSell`
The _GridSell_ is a complementary approach to `GridHODL`, focusing on
liquidating the purchased base currency in each trade cycle to realize immediate
profits. The key distinction is that each sell order matches the total quantity
bought in the preceding buy order.
Technical Breakdown:
- **Order Logic**: For every buy order executed (e.g., purchasing $100 worth of
BTC at $48,000), a sell order is placed for the entire amount of BTC acquired
at a 4% higher price. This ensures that each trade cycle results in a complete
turnover of the base currency.
- **Profit Realization**: The strategy ensures that profits are locked in at
each cycle, reducing the need for long-term accumulation or holding. It is
particularly suitable for traders who prioritize short-term gains over base
currency accumulation.
- **Risk Mitigation**: By liquidating the entire bought amount, the GridSell
strategy minimizes exposure to prolonged market downturns, ensuring that the
trader consistently realizes profits without holding onto assets for extended
periods.
### `SWING`
The _SWING_ strategy builds upon `GridHODL` but introduces a mechanism to
capitalize on significant upward price movements by selling accumulated base
currency at higher levels.
Technical Breakdown:
- **Market Adaptation**: This strategy tracks the highest buy price within a
defined range (e.g., $40,000 to $80,000). If the market price exceeds this
range (e.g., rises to $83,200), the algorithm initiates sell orders at
predefined intervals (e.g., 4% above the highest buy price).
- **Sell Execution**: Unlike `GridHODL`, which focuses on buying and selling in
cycles, SWING starts selling accumulated base currency once the price
surpasses the highest recorded buy price. This ensures that profits are
captured during bullish market trends.
- **Continuous Accumulation**: Even as it initiates sell orders above the
highest buy price, the algorithm continues to place buy orders below it,
ensuring that base currency accumulation continues during market dips.
- **Profit Maximization**: This dual approach allows traders to benefit from
both upward trends (through sell orders) and downward corrections (through
continued accumulation).
> ⚠️ It also starts selling the already existing base currency above the
> current price. This should be kept in mind when choosing this
> strategy.
### `cDCA`
The _cDCA_ (Custom Dollar-Cost Averaging) strategy diverges from traditional DCA
by incorporating dynamic interval adjustments to optimize long-term accumulation
of the base currency.
Technical Breakdown:
- **Fixed Interval Purchases**: Unlike time-based DCA, cDCA places buy orders at
fixed percentage intervals (e.g., every 4% price movement) rather than at
regular time intervals. This ensures that purchases are made in response to
market movements rather than arbitrary time frames.
- **No Sell Orders**: cDCA focuses purely on accumulation. It consistently buys
the base currency (e.g., $100 worth of BTC) at each interval without placing
corresponding sell orders, banking on long-term price appreciation.
- **Adaptive Buy Orders**: The algorithm adapts to rising prices by shifting buy
orders upward rather than letting them fall out of scope. For instance, if the
price exceeds $60,000, new buy orders are placed at 4% intervals below this
new level, maintaining relevance in the current market context.
- **Long-Term Growth**: This strategy is ideal for traders with a long-term
investment horizon, aiming to build a significant position in the base
currency over time, with the expectation of future price increases.
<a name="setup"></a>
## 🚀 Setup
<a name="preparation"></a>
### Preparation
Before installing and running the `kraken-infinity-grid`, you need to make sure
to clearly understand the available trading strategies and their configuration.
Avoid running the algorithm with real money before you are confident in the
algorithm's behavior and performance!
1. In order to trade at the [Kraken Cryptocurrency
Exchange](https://pro.kraken.com), you need to generate API keys for the
Kraken exchange (see [How to create an API
key](https://support.kraken.com/hc/en-us/articles/360000919966-How-to-create-an-API-key)).
Make sure to generate keys with the required permissions for trading and
querying orders:
<div align="center">
<figure>
<img
src="doc/_static/images/kraken_api_key_permissions.png?raw=true"
alt="Required API key permissions"
style="background-color: white; border-radius: 7px">
<figcaption>Figure 2: Required API key permissions</figcaption>
</figure>
</div>
2. [optional] The algorithm leverages Telegram Bots to send notifications about
the current state of the algorithm. We need two, one for the notifications
about the algorithm's state and trades and one for notifications about
errors.
- Create two bots, name as you wish via: https://telegram.me/BotFather.
- Start the chat with both new Telegram bots and write any message to ensure
that the chat ID is available in the next step.
- Get the bot token from the BotFather and access
`https://api.telegram.org/bot<your bot token here>/getUpdates` to receive
your chat ID.
- Save the chat IDs as well as the bot tokens for both of them, we'll need
them later.
This repository contains a `docker-compose.yaml` file that can be used to run
the algorithm using docker compose. The `docker-compose.yaml` also provides a
default configuration for the PostgreSQL database. To run the algorithm, follow
these steps:
### Running the algorithm
**Pure Python process**
To run the algorithm as a pure Python process, follow these steps:
1. Install the package via pip:
```bash
python3 -m venv venv
source venv/bin/activate
pip install kraken-infinity-grid
```
2. The algorithm can be started via the command-line interface. For using a
local SQLite database, you can specify the path to the SQLite database file
via the `--sqlite-file` option. The SQLite database is created
automatically if it does not exist, otherwise the existing database is used.
See more configuration options within the configuration section.
```bash
kraken-infinity-grid \
--api-key <your-api-key> \
--secret-key <your-api-secret> \
run \
--strategy "GridHODL" \
...
--sqlite-file=/path/to/sqlite.db
```
**Docker Compose**
The repository of the
[`kraken-infinity-grid`](https://github.com/btschwertfeger/kraken-infinity-grid)
contains a `docker-compose.yaml` file that can be used to run the algorithm
using Docker Compose. This file also provides a default configuration for the
PostgreSQL database. To run the algorithm, follow these steps:
1. Clone the repository:
```bash
git clone https://github.com/btschwertfeger/kraken-infinity-grid.git
```
2. Build the Docker images:
```bash
docker system prune -a
docker compose build --no-cache
```
3. Configure the algorithm either by ensuring the environment variables
documented further down are set or by setting them directly within the
`docker-compose.yaml`..
4. Run the algorithm:
```bash
docker compose up # -d
```
5. Check the logs of the container and the Telegram chat for updates.
## 🛠 Configuration
| Variable | Type | Description |
| ------------------------------ | ------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| `KRAKEN_API_KEY` | `str` | Your Kraken API key. |
| `KRAKEN_SECRET_KEY` | `str` | Your Kraken secret key. |
| `KRAKEN_RUN_NAME` | `str` | The name of the instance. Can be any name that is used to differentiate between instances of the kraken-infinity-grid. |
| `KRAKEN_RUN_USERREF` | `int` | A reference number to identify the algorithms's orders. This can be a timestamp or any integer number. **Use different userref's for different algorithms!** |
| `KRAKEN_BOT_VERBOSE` | `int`/(`-v`,`-vv`) | Enable verbose logging. |
| `KRAKEN_DRY_RUN` | `bool` | Enable dry-run mode (no actual trades). |
| `KRAKEN_RUN_BASE_CURRENCY` | `str` | The base currency e.g., `BTC`. |
| `KRAKEN_RUN_QUOTE_CURRENCY` | `str` | The quote currency e.g., `USD`. |
| `KRAKEN_RUN_AMOUNT_PER_GRID` | `float` | The amount to use per grid interval e.g., `100` (USD). |
| `KRAKEN_RUN_INTERVAL` | `float` | The interval between orders e.g., `0.04` to have 4 % intervals. |
| `KRAKEN_RUN_N_OPEN_BUY_ORDERS` | `int` | The number of concurrent open buy orders e.g., `5`. The number of always open buy positions specifies how many buy positions should be open at the same time. If the interval is defined to 2%, a number of 5 open buy positions ensures that a rapid price drop of almost 10% that can be caught immediately. |
| `KRAKEN_RUN_MAX_INVESTMENT` | `str` | The maximum investment amount, e.g. `1000` USD. |
| `KRAKEN_RUN_FEE` | `float` | A custom fee percentage, e.g. `0.0026` for 0.26 % fee. |
| `KRAKEN_RUN_STRATEGY` | `str` | The trading strategy (e.g., `GridHODL`, `GridSell`, `SWING`, or `cDCA`). |
| `KRAKEN_RUN_TELEGRAM_TOKEN` | `str` | The Telegram bot token for notifications. |
| `KRAKEN_RUN_TELEGRAM_CHAT_ID` | `str` | The Telegram chat ID for notifications. |
| `KRAKEN_RUN_EXCEPTION_TOKEN` | `str` | The Telegram bot token for exception notifications. |
| `KRAKEN_RUN_EXCEPTION_CHAT_ID` | `str` | The Telegram chat ID for exception notifications. |
| `KRAKEN_RUN_DB_USER` | `str` | The PostgreSQL database user. |
| `KRAKEN_RUN_DB_NAME` | `str` | The PostgreSQL database name. |
| `KRAKEN_RUN_DB_PASSWORD` | `str` | The PostgreSQL database password. |
| `KRAKEN_RUN_DB_HOST` | `str` | The PostgreSQL database host. |
| `KRAKEN_RUN_DB_PORT` | `int` | The PostgreSQL database port. |
| `KRAKEN_RUN_SQLITE_FILE` | `str` | The path to a local SQLite database file, e.g., `/path/to/sqlite.db`, will be created if it does not exist. If a SQLite database is used, the PostgreSQL database configuration is ignored. |
<a name="monitoring"></a>
## 📡 Monitoring
Trades as well as open positions can be monitored at
[Kraken](https://pro.kraken.com).
<div align="center">
<figure>
<img
src="doc/_static/images/kraken_dashboard.png?raw=true"
alt="Required API key permissions"
style="background-color: white; border-radius: 7px">
<figcaption>Figure 3: Monitoring orders via Kraken's web UI</figcaption>
</figure>
</div>
Additionally, the algorithm can be configured to send notifications about the
current state of the algorithm via Telegram Bots (see
[Preparation](#preparation)).
<div align="center">
<figure>
<img
src="doc/_static/images/telegram_update.png?raw=true"
alt="Required API key permissions"
style="background-color: white; border-radius: 7px; height: 500px">
<figcaption>Figure 4: Monitoring orders and trades via Telegram</figcaption>
</figure>
</div>
## 🚨 Troubleshooting
- Only use release versions of the `kraken-infinity-grid`. The `master` branch
might contain unstable code! Also pin the the dependencies used in order to
avoid unexpected behavior.
- Check the **permissions of your API keys** and the required permissions on the
respective endpoints.
- If you get some Cloudflare or **rate limit errors**, please check your Kraken
Tier level and maybe apply for a higher rank if required.
- **Use different API keys for different algorithms**, because the nonce
calculation is based on timestamps and a sent nonce must always be the highest
nonce ever sent of that API key. Having multiple algorithms using the same
keys will result in invalid nonce errors.
- Always keep an eye on https://status.kraken.com/ when encountering
connectivity problems.
---
<a name="notes"></a>
## 📝 Notes
The versioning scheme follows the pattern `v<Major>.<Minor>.<Patch>`. Here's
what each part signifies:
- **Major**: This denotes significant changes that may introduce new features or
modify existing ones. It's possible for these changes to be breaking, meaning
backward compatibility is not guaranteed. To avoid unexpected behavior, it's
advisable to specify at least the major version when pinning dependencies.
- **Minor**: This level indicates additions of new features or extensions to
existing ones. Typically, these changes do not break existing implementations.
- **Patch**: Here, you'll find bug fixes, documentation updates, and changes
related to continuous integration (CI). These updates are intended to enhance
stability and reliability without altering existing functionality.
<a name="references"></a>
## 🔭 References
- https://github.com/btschwertfegr/python-kraken-sdk
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"description": "<h1 align=\"center\">Infinity Grid Trading Algorithm for the Kraken Exchange</h1>\n\n<div align=\"center\">\n\n[](https://github.com/btschwertfeger/kraken-infinity-grid)\n[](https://shields.io/)\n[](https://pepy.tech/project/kraken-infinity-grid)\n\n[](https://github.com/astral-sh/ruff)\n[](https://mypy-lang.org/)\n[](https://github.com/btschwertfeger/kraken-infinity-grid/actions/workflows/cicd.yaml)\n[](https://app.codecov.io/gh/btschwertfeger/kraken-infinity-grid)\n\n[](https://securityscorecards.dev/viewer/?uri=github.com/btschwertfeger/kraken-infinity-grid)\n[](https://www.bestpractices.dev/projects/9956)\n\n[](https://github.com/btschwertfeger/kraken-infinity-grid/releases)\n[](https://pypi.org/project/kraken-infinity-grid/)\n[](https://kraken-infinity-grid.readthedocs.io/en/stable)\n[](https://doi.org/10.5281/zenodo.14735203)\n\n</div>\n\n> \u26a0\ufe0f **Disclaimer**: This software was initially designed for private use only.\n> Please note that this project is independent and not endorsed by Kraken or\n> Payward Ltd. Users should be aware that they are using third-party software,\n> and the authors of this project are not responsible for any issues, losses, or\n> risks associated with its usage. **Payward Ltd. and Kraken are in no way\n> associated with the authors of this package and documentation.**\n>\n> There is no guarantee that this software will work flawlessly at this or later\n> times. Of course, no responsibility is taken for possible profits or losses.\n> This software probably has some errors in it, so use it at your own risk. Also\n> no one should be motivated or tempted to invest assets in speculative forms of\n> investment. By using this software you release the author(s) from any\n> liability regarding the use of this software.\n\nThe kraken-infinity-grid is a trading algorithm that uses grid trading\nstrategies that places buy and sell orders in a grid-like manner, while\nfollowing the principle of buying low and selling high. It is designed for\ntrading cryptocurrencies on the [Kraken](https://pro.kraken.com) Spot exchange,\nis written in Python and uses the\n[python-kraken-sdk](https://github.com/btschwertfeger/python-kraken-sdk) library\nto interact with the Kraken API.\n\nThe algorithm requires a PostgreSQL or SQLite database and can be run either\nlocally or in a Docker container (recommended). The algorithm can be configured\nto use different trading strategies, such as GridHODL, GridSell, SWING, and\ncDCA.\n\nWhile the verbosity levels of logging provide useful insights into the\nalgorithms's behavior, the Telegram notifications can be used to receive updates\non the algorithms's activity and exceptions. For this the algorithm requires two\ndifferent Telegram bot tokens and chat IDs, one for regular notifications and\none for exception notifications (see [Setup](#Setup) for more information).\n\nDocumentation:\n\n- https://kraken-infinity-grid.readthedocs.io/en/latest/\n- https://kraken-infinity-grid.readthedocs.io/en/stable/\n\n## \ud83d\udcda Fundamental concepts\n\n`kraken-infinity-grid` is a sophisticated trading algorithm designed for\nautomated cryptocurrency trading using a grid strategy. This approach is\nparticularly effective in volatile markets, where frequent price fluctuations\nallow for consistent profit opportunities through structured buying and selling\npatterns.\n\n### \ud83d\udcc8 The core idea: Grid trading\n\nAt its essence, grid trading aims to capitalize on market volatility by setting\na series of buy and sell orders at predefined intervals. The algorithm operates\nwithin a \"grid\" of prices, purchasing assets when prices dip and selling them as\nprices rise. This systematic approach helps in capturing small gains repeatedly,\nleveraging the natural oscillations in market prices.\n\n<div align=\"center\">\n <figure>\n <img\n src=\"doc/_static/images/blsh.png?raw=true\"\n alt=\"Buying low and selling high in high-volatile markets\"\n style=\"background-color: white; border-radius: 7px\">\n <figcaption>Figure 1: Buying low and selling high in high-volatile markets</figcaption>\n </figure>\n</div>\n\n_All currency pairs mentioned here are for illustrative purposes only._\n\n### \ud83d\udcca Key Elements of Grid Trading\n\n1. **Intervals**: Unlike fully static systems, `kraken-infinity-grid` uses\n fixed intervals that shift up or down based on price movements, ensuring\n continuous trading and avoids manual interactions. This flexibility is\n crucial for maintaining profitability in diverse market environments.\n\n2. **Volatility Advantage**: High volatility is a friend to grid traders. The\n more the price oscillates, the more opportunities arise to buy low and sell\n high. The algorithm thrives in such conditions, with each price movement\n potentially triggering a profitable trade.\n\n3. **Consistent Position Sizing**: Each trade involves a consistent volume in\n terms of the quote currency (e.g., $100 per trade). This uniformity\n simplifies the management of trades and helps in maintaining a balanced\n portfolio.\n\n### \ud83d\udcc9 Risk Management and Reinvestment\n\n1. **Risk Mitigation**: The algorithm inherently incorporates risk management by\n spreading investments across multiple price levels and maintaining almost\n consistent trade sizes. This diversification reduces the impact of adverse\n market movements on the overall portfolio.\n\n2. **Reinvestment Mechanism**: Accumulated profits can be reinvested, enhancing\n the trading capital and potential returns. The algorithm automatically\n adjusts buy and and places sell orders to reflect the increased capital, thus\n compounding growth over time.\n\n## \ud83d\udcca Available strategies\n\nEach of the following strategies is designed to leverage different aspects of\nmarket behavior, providing flexibility and adaptability to traders depending on\ntheir risk tolerance, market outlook, and investment goals.\n\n### `GridHODL`\n\nThe _GridHODL_ strategy operates on a predefined grid system where buy and sell\norders are placed at fixed intervals below and above the current market price,\nrespectively. This strategy is designed to capitalize on market fluctuations by\nbuying low and selling high, ensuring gradual accumulation of the base currency\nover time.\n\nTechnical Breakdown:\n\n- **Order Placement**: The algorithm dynamically adjusts $n$ buy orders\n below the current market price. For example, with a 4% interval, if the\n current BTC price is $50,000, the first buy order is set at $48,000, the\n second at $46,080, and so on.\n- **Execution**: Upon execution of a buy order, a corresponding sell order is\n immediately placed at 4% above the purchase price respecting a fixed quote\n volume. This creates a cycle of continuous buying and selling, with each cycle\n aiming to yield a small portion in the base currency.\n- **Accumulation**: Unlike traditional trading strategies, GridHODL is designed\n to accumulate the base currency gradually. Each buy order slightly increases\n the holdings, while the fixed order size in terms of quote currency (e.g.,\n $100) ensures consistent exposure.\n\nThis strategy is particularly effective in sideways, slightly, and high volatile\nmarkets, where frequent price oscillations allow for regular execution of the\ngrid orders. Accumulating the base currency over time can lead to significant\ngains, especially when prices rise after a long accumulation phase.\n\n### `GridSell`\n\nThe _GridSell_ is a complementary approach to `GridHODL`, focusing on\nliquidating the purchased base currency in each trade cycle to realize immediate\nprofits. The key distinction is that each sell order matches the total quantity\nbought in the preceding buy order.\n\nTechnical Breakdown:\n\n- **Order Logic**: For every buy order executed (e.g., purchasing $100 worth of\n BTC at $48,000), a sell order is placed for the entire amount of BTC acquired\n at a 4% higher price. This ensures that each trade cycle results in a complete\n turnover of the base currency.\n- **Profit Realization**: The strategy ensures that profits are locked in at\n each cycle, reducing the need for long-term accumulation or holding. It is\n particularly suitable for traders who prioritize short-term gains over base\n currency accumulation.\n- **Risk Mitigation**: By liquidating the entire bought amount, the GridSell\n strategy minimizes exposure to prolonged market downturns, ensuring that the\n trader consistently realizes profits without holding onto assets for extended\n periods.\n\n### `SWING`\n\nThe _SWING_ strategy builds upon `GridHODL` but introduces a mechanism to\ncapitalize on significant upward price movements by selling accumulated base\ncurrency at higher levels.\n\nTechnical Breakdown:\n\n- **Market Adaptation**: This strategy tracks the highest buy price within a\n defined range (e.g., $40,000 to $80,000). If the market price exceeds this\n range (e.g., rises to $83,200), the algorithm initiates sell orders at\n predefined intervals (e.g., 4% above the highest buy price).\n- **Sell Execution**: Unlike `GridHODL`, which focuses on buying and selling in\n cycles, SWING starts selling accumulated base currency once the price\n surpasses the highest recorded buy price. This ensures that profits are\n captured during bullish market trends.\n- **Continuous Accumulation**: Even as it initiates sell orders above the\n highest buy price, the algorithm continues to place buy orders below it,\n ensuring that base currency accumulation continues during market dips.\n- **Profit Maximization**: This dual approach allows traders to benefit from\n both upward trends (through sell orders) and downward corrections (through\n continued accumulation).\n\n> \u26a0\ufe0f It also starts selling the already existing base currency above the\n> current price. This should be kept in mind when choosing this\n> strategy.\n\n### `cDCA`\n\nThe _cDCA_ (Custom Dollar-Cost Averaging) strategy diverges from traditional DCA\nby incorporating dynamic interval adjustments to optimize long-term accumulation\nof the base currency.\n\nTechnical Breakdown:\n\n- **Fixed Interval Purchases**: Unlike time-based DCA, cDCA places buy orders at\n fixed percentage intervals (e.g., every 4% price movement) rather than at\n regular time intervals. This ensures that purchases are made in response to\n market movements rather than arbitrary time frames.\n- **No Sell Orders**: cDCA focuses purely on accumulation. It consistently buys\n the base currency (e.g., $100 worth of BTC) at each interval without placing\n corresponding sell orders, banking on long-term price appreciation.\n- **Adaptive Buy Orders**: The algorithm adapts to rising prices by shifting buy\n orders upward rather than letting them fall out of scope. For instance, if the\n price exceeds $60,000, new buy orders are placed at 4% intervals below this\n new level, maintaining relevance in the current market context.\n- **Long-Term Growth**: This strategy is ideal for traders with a long-term\n investment horizon, aiming to build a significant position in the base\n currency over time, with the expectation of future price increases.\n\n<a name=\"setup\"></a>\n\n## \ud83d\ude80 Setup\n\n<a name=\"preparation\"></a>\n\n### Preparation\n\nBefore installing and running the `kraken-infinity-grid`, you need to make sure\nto clearly understand the available trading strategies and their configuration.\nAvoid running the algorithm with real money before you are confident in the\nalgorithm's behavior and performance!\n\n1. In order to trade at the [Kraken Cryptocurrency\n Exchange](https://pro.kraken.com), you need to generate API keys for the\n Kraken exchange (see [How to create an API\n key](https://support.kraken.com/hc/en-us/articles/360000919966-How-to-create-an-API-key)).\n Make sure to generate keys with the required permissions for trading and\n querying orders:\n\n<div align=\"center\">\n <figure>\n <img\n src=\"doc/_static/images/kraken_api_key_permissions.png?raw=true\"\n alt=\"Required API key permissions\"\n style=\"background-color: white; border-radius: 7px\">\n <figcaption>Figure 2: Required API key permissions</figcaption>\n </figure>\n</div>\n\n2. [optional] The algorithm leverages Telegram Bots to send notifications about\n the current state of the algorithm. We need two, one for the notifications\n about the algorithm's state and trades and one for notifications about\n errors.\n\n - Create two bots, name as you wish via: https://telegram.me/BotFather.\n - Start the chat with both new Telegram bots and write any message to ensure\n that the chat ID is available in the next step.\n - Get the bot token from the BotFather and access\n `https://api.telegram.org/bot<your bot token here>/getUpdates` to receive\n your chat ID.\n - Save the chat IDs as well as the bot tokens for both of them, we'll need\n them later.\n\nThis repository contains a `docker-compose.yaml` file that can be used to run\nthe algorithm using docker compose. The `docker-compose.yaml` also provides a\ndefault configuration for the PostgreSQL database. To run the algorithm, follow\nthese steps:\n\n### Running the algorithm\n\n**Pure Python process**\n\nTo run the algorithm as a pure Python process, follow these steps:\n\n1. Install the package via pip:\n\n ```bash\n python3 -m venv venv\n source venv/bin/activate\n pip install kraken-infinity-grid\n ```\n\n2. The algorithm can be started via the command-line interface. For using a\n local SQLite database, you can specify the path to the SQLite database file\n via the `--sqlite-file` option. The SQLite database is created\n automatically if it does not exist, otherwise the existing database is used.\n See more configuration options within the configuration section.\n\n ```bash\n kraken-infinity-grid \\\n --api-key <your-api-key> \\\n --secret-key <your-api-secret> \\\n run \\\n --strategy \"GridHODL\" \\\n ...\n --sqlite-file=/path/to/sqlite.db\n ```\n\n**Docker Compose**\n\nThe repository of the\n[`kraken-infinity-grid`](https://github.com/btschwertfeger/kraken-infinity-grid)\ncontains a `docker-compose.yaml` file that can be used to run the algorithm\nusing Docker Compose. This file also provides a default configuration for the\nPostgreSQL database. To run the algorithm, follow these steps:\n\n1. Clone the repository:\n\n ```bash\n git clone https://github.com/btschwertfeger/kraken-infinity-grid.git\n ```\n\n2. Build the Docker images:\n\n ```bash\n docker system prune -a\n docker compose build --no-cache\n ```\n\n3. Configure the algorithm either by ensuring the environment variables\n documented further down are set or by setting them directly within the\n `docker-compose.yaml`..\n\n4. Run the algorithm:\n\n ```bash\n docker compose up # -d\n ```\n\n5. Check the logs of the container and the Telegram chat for updates.\n\n## \ud83d\udee0 Configuration\n\n| Variable | Type | Description |\n| ------------------------------ | ------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| `KRAKEN_API_KEY` | `str` | Your Kraken API key. |\n| `KRAKEN_SECRET_KEY` | `str` | Your Kraken secret key. |\n| `KRAKEN_RUN_NAME` | `str` | The name of the instance. Can be any name that is used to differentiate between instances of the kraken-infinity-grid. |\n| `KRAKEN_RUN_USERREF` | `int` | A reference number to identify the algorithms's orders. This can be a timestamp or any integer number. **Use different userref's for different algorithms!** |\n| `KRAKEN_BOT_VERBOSE` | `int`/(`-v`,`-vv`) | Enable verbose logging. |\n| `KRAKEN_DRY_RUN` | `bool` | Enable dry-run mode (no actual trades). |\n| `KRAKEN_RUN_BASE_CURRENCY` | `str` | The base currency e.g., `BTC`. |\n| `KRAKEN_RUN_QUOTE_CURRENCY` | `str` | The quote currency e.g., `USD`. |\n| `KRAKEN_RUN_AMOUNT_PER_GRID` | `float` | The amount to use per grid interval e.g., `100` (USD). |\n| `KRAKEN_RUN_INTERVAL` | `float` | The interval between orders e.g., `0.04` to have 4 % intervals. |\n| `KRAKEN_RUN_N_OPEN_BUY_ORDERS` | `int` | The number of concurrent open buy orders e.g., `5`. The number of always open buy positions specifies how many buy positions should be open at the same time. If the interval is defined to 2%, a number of 5 open buy positions ensures that a rapid price drop of almost 10% that can be caught immediately. |\n| `KRAKEN_RUN_MAX_INVESTMENT` | `str` | The maximum investment amount, e.g. `1000` USD. |\n| `KRAKEN_RUN_FEE` | `float` | A custom fee percentage, e.g. `0.0026` for 0.26 % fee. |\n| `KRAKEN_RUN_STRATEGY` | `str` | The trading strategy (e.g., `GridHODL`, `GridSell`, `SWING`, or `cDCA`). |\n| `KRAKEN_RUN_TELEGRAM_TOKEN` | `str` | The Telegram bot token for notifications. |\n| `KRAKEN_RUN_TELEGRAM_CHAT_ID` | `str` | The Telegram chat ID for notifications. |\n| `KRAKEN_RUN_EXCEPTION_TOKEN` | `str` | The Telegram bot token for exception notifications. |\n| `KRAKEN_RUN_EXCEPTION_CHAT_ID` | `str` | The Telegram chat ID for exception notifications. |\n| `KRAKEN_RUN_DB_USER` | `str` | The PostgreSQL database user. |\n| `KRAKEN_RUN_DB_NAME` | `str` | The PostgreSQL database name. |\n| `KRAKEN_RUN_DB_PASSWORD` | `str` | The PostgreSQL database password. |\n| `KRAKEN_RUN_DB_HOST` | `str` | The PostgreSQL database host. |\n| `KRAKEN_RUN_DB_PORT` | `int` | The PostgreSQL database port. |\n| `KRAKEN_RUN_SQLITE_FILE` | `str` | The path to a local SQLite database file, e.g., `/path/to/sqlite.db`, will be created if it does not exist. If a SQLite database is used, the PostgreSQL database configuration is ignored. |\n\n<a name=\"monitoring\"></a>\n\n## \ud83d\udce1 Monitoring\n\nTrades as well as open positions can be monitored at\n[Kraken](https://pro.kraken.com).\n\n<div align=\"center\">\n <figure>\n <img\n src=\"doc/_static/images/kraken_dashboard.png?raw=true\"\n alt=\"Required API key permissions\"\n style=\"background-color: white; border-radius: 7px\">\n <figcaption>Figure 3: Monitoring orders via Kraken's web UI</figcaption>\n </figure>\n</div>\n\nAdditionally, the algorithm can be configured to send notifications about the\ncurrent state of the algorithm via Telegram Bots (see\n[Preparation](#preparation)).\n\n<div align=\"center\">\n <figure>\n <img\n src=\"doc/_static/images/telegram_update.png?raw=true\"\n alt=\"Required API key permissions\"\n style=\"background-color: white; border-radius: 7px; height: 500px\">\n <figcaption>Figure 4: Monitoring orders and trades via Telegram</figcaption>\n </figure>\n</div>\n\n## \ud83d\udea8 Troubleshooting\n\n- Only use release versions of the `kraken-infinity-grid`. The `master` branch\n might contain unstable code! Also pin the the dependencies used in order to\n avoid unexpected behavior.\n- Check the **permissions of your API keys** and the required permissions on the\n respective endpoints.\n- If you get some Cloudflare or **rate limit errors**, please check your Kraken\n Tier level and maybe apply for a higher rank if required.\n- **Use different API keys for different algorithms**, because the nonce\n calculation is based on timestamps and a sent nonce must always be the highest\n nonce ever sent of that API key. Having multiple algorithms using the same\n keys will result in invalid nonce errors.\n- Always keep an eye on https://status.kraken.com/ when encountering\n connectivity problems.\n\n---\n\n<a name=\"notes\"></a>\n\n## \ud83d\udcdd Notes\n\nThe versioning scheme follows the pattern `v<Major>.<Minor>.<Patch>`. Here's\nwhat each part signifies:\n\n- **Major**: This denotes significant changes that may introduce new features or\n modify existing ones. It's possible for these changes to be breaking, meaning\n backward compatibility is not guaranteed. To avoid unexpected behavior, it's\n advisable to specify at least the major version when pinning dependencies.\n- **Minor**: This level indicates additions of new features or extensions to\n existing ones. Typically, these changes do not break existing implementations.\n- **Patch**: Here, you'll find bug fixes, documentation updates, and changes\n related to continuous integration (CI). These updates are intended to enhance\n stability and reliability without altering existing functionality.\n\n<a name=\"references\"></a>\n\n## \ud83d\udd2d References\n\n- https://github.com/btschwertfegr/python-kraken-sdk\n",
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"license": "Custom License Agreement Version 2.0, January 2025 TERMS AND CONDITIONS FOR USE, REPRODUCTION, AND DISTRIBUTION 1. Permission for Personal Use You are allowed to use, modify, and distribute this software for personal and non-commercial purposes. This includes the right to modify the code and share it with others, provided the terms outlined in this license are met. 2. No Commercial Use Companies and other organizations are prohibited from using, modifying, or distributing this software for commercial purposes without explicit written consent from the author. Commercial use includes any activity that directly or indirectly generates revenue or is intended for commercial advantage. 3. Attribution Requirement If you use, modify, or distribute this software in any public capacity, you must provide clear and visible attribution to the original author and owner. This attribution should include the author's name and a link to the original project repository. 4. Request for Commercial Use For any commercial use, you must contact the author to negotiate a separate agreement. Commercial use is only permitted after entering into a custom contract with terms agreed upon by both parties. 5. Disclaimer of Liability This software is provided \"as is\", without any warranties of any kind, either express or implied, including but not limited to the warranties of merchantability, fitness for a particular purpose, or non-infringement. In no event shall the author be liable for any claim, damages, or other liability, whether in an action of contract, tort, or otherwise, arising from, out of, or in connection with the software or the use or other dealings in the software. 6. Governing Law This license shall be governed by and construed in accordance with the laws of Germany. 7. Contributor Rights By contributing to this project, contributors agree that they waive any rights to attribution or ownership of their contributions. All contributions become the sole property of the original author and owner. Contributors have no rights to require their names to be included in any references or credits related to this software. END OF TERMS AND CONDITIONS Copyright 2025 Benjamin Thomas Schwertfeger contact@b-schwertfeger.de https://github.com/btschwertfeger ",
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