Trading Bot

A Python-based trading bot that uses Alpaca API, YFinance, VADER sentiment analysis, and OpenAI's GPT-3.5 to analyze financial data, execute trades, and manage risk. This bot is designed to operate automatically and includes several features such as risk management, news sentiment analysis, and portfolio management.

Features

• Automatic Trading: The bot uses Alpaca API to trade stocks automatically.
• RSI & Sentiment Analysis: It utilizes RSI (Relative Strength Index) from ta-lib and sentiment analysis using VADER to make informed trading decisions.
• GPT-3.5 Integration: Queries OpenAI GPT-3.5 to get trade decisions based on stock data (RSI, sentiment, P/E ratio, VaR).
• Risk Management: Implements a maximum drawdown limit, maximum allocation per stock, and trailing stops.
• Logging: Trades and OpenAI decisions are logged into JSON files (chat_gpt_logs.json and trade_decisions.json), and committed periodically to a remote repository.
• Email Notifications: Sends error notifications via email using SMTP.
• Portfolio Management: Automatically liquidates the portfolio if its value falls below a defined threshold.
• Real-time Stock Data: Fetches real-time stock prices via Alpaca's WebSocket streaming API.

Installation

1. Clone the repository.
2. Install dependencies:

   pip install -r requirements.txt

3. Install TA-Lib from source (if required):

   sudo apt-get update
   sudo apt-get install -y build-essential wget
   wget http://prdownloads.sourceforge.net/ta-lib/ta-lib-0.4.0-src.tar.gz
   tar -xzf ta-lib-0.4.0-src.tar.gz
   cd ta-lib
   ./configure --prefix=/usr
   make
   sudo make install

Usage

To run the bot:

python bot.py

The bot operates by streaming real-time stock price data, evaluating stocks using technical indicators, and querying GPT-3.5 for decisions.

Features Overview

• Sentiment Analysis: Fetches recent news articles using Finnhub API and scores the sentiment using VADER Sentiment Analysis.
• GPT-3.5 Trading Decision: The bot collects the RSI value, sentiment score, P/E ratio, and VaR, and queries OpenAI to decide whether to buy or sell stocks.
• Risk Management: A max drawdown limit of 8% and a trailing stop of 2% are enforced to protect against significant losses.

Auto Liquidation

The bot is designed to liquidate all positions at 3:50 PM Eastern Time and shut down to prevent further trading after the market closes.

Logging and Commit

The bot logs its trading decisions and GPT queries to JSON files and periodically commits the logs to the GitHub repository (if configured).

chat_gpt_logs.json  # Logs GPT-based decisions
trade_decisions.json  # Logs all trade decisions

Customization

You can modify the following parameters in the script:

• Portfolio Settings:

  • INITIAL_PORTFOLIO_VALUE: Initial portfolio value ($26,000).
  • MIN_PORTFOLIO_VALUE: Minimum portfolio value ($25,100).
  • MAX_RISK_PER_TRADE: Max risk per trade (1% of portfolio value).
  • MAX_DRAW_DOWN_LIMIT: Maximum allowable drawdown (8%).

• Alpaca API Settings:

  • Replace the Alpaca API credentials with your own in the script:

    API_KEY = 'YOUR_ALPACA_API_KEY'
    API_SECRET = 'YOUR_ALPACA_API_SECRET'
    BASE_URL = 'https://paper-api.alpaca.markets'

• Email Notifications: Configure the email notifications by providing your email credentials:

  EMAIL_USER = '[email protected]'
  EMAIL_PASS = 'your-email-password'

License

This project is licensed under the MIT License.