High-Performance Async Trading Bot with Dynamic Trailing Take-Profit
Trailing Edge is a high-performance asynchronous Python trading bot for Binance featuring dynamic trailing take-profit strategies, regime detection, Donchian channel gating, and Ed25519 authentication. Built for 24/7 autonomous operation on low-cost infrastructure with low-latency reaction times.
The system processes high-velocity market data streams using asyncio for non-blocking I/O. It implements sophisticated trading strategies including dynamic trailing stops with exponential decay, automatic regime switching between BASE and QUOTE modes, and intelligent hard stops with Donchian channel re-entry gating.
Deployed as a systemd service for production reliability, the bot features comprehensive logging, Telegram notifications, and graceful shutdown handling. It uses WebSocket reconciliation for stateless operation, eliminating the need for database persistence.
Cryptocurrency trading requires real-time market data processing, low-latency order execution, and 24/7 autonomous operation. Traditional synchronous architectures cannot handle high-frequency market data streams without blocking or dropping events. Trading bots need sophisticated risk management with dynamic stop-loss and take-profit strategies.
Market opportunities in cryptocurrency trading occur in milliseconds. Manual trading is impossible at scale. Automated systems must process thousands of market updates per second while maintaining low-latency reaction times for order execution. Risk management is critical to prevent catastrophic losses.
An event-driven async architecture: (1) WebSocket streams for market data and account updates, (2) Async event loop processing all streams concurrently, (3) Regime detection switching between BASE (inventory) and QUOTE (cash) modes, (4) Dynamic trailing take-profit with exponential decay, (5) Donchian channel-based hard stops with intelligent re-entry gating.
Handles concurrent market data and account streams using asyncio. Features auto-reconnect with exponential backoff. Processes high-velocity updates without blocking.
Automatically switches between BASE (holding inventory) and QUOTE (holding cash) modes based on balance updates. Implements all-in compounding strategy for bull rallies.
Callback-based profit-taking with exponential decay from start to min factor. Automatically adjusts profit targets as gains increase, locking in profits while allowing upside.
Volatility-aware stop-loss using Donchian Channels. Implements smart re-entry gating that waits for price to cross mid-channel in favorable direction after stop triggers.
Uses Binance order.replace API for aggressive price-chasing. Places post-only maker orders that persist until fill or manual override.
asyncio chosen over threading for I/O-bound workload (WebSocket streams). Ed25519 provides secure, non-expiring authentication. Donchian Channels react instantly to price action (forward-looking) vs ATR (backward-looking). Systemd provides production-grade service management. WebSocket reconciliation eliminates database latency.
Deep dive into the technical implementation with annotated code examples
View Technical DetailsProcessing high-velocity market data streams without blocking the trading loop
Implemented async architecture with asyncio.Queue for non-blocking I/O. Generator emits logs in batches to reduce overhead. All WebSocket streams processed concurrently on single event loop.
Maintaining state consistency across WebSocket reconnections
Implemented WebSocket reconciliation pattern. Jumpstart orders trigger immediate balance snapshots. System rebuilds state from stream events, eliminating need for database persistence.
Implementing sophisticated trailing stop with dynamic adjustments
Created callback-based system with exponential decay function. Trailing factor decreases from start to min as price moves favorably. Automatically locks in profits while preserving upside potential.
Handling partial fills and order management at scale
Uses Binance order.replace API for persistent maker orders. Tracks order state in-memory and replaces orders every loop iteration to chase best prices. Guarantees fill or manual override.
Deployed production trading bot running 24/7 on cloud VPS. System processes high-velocity market updates with low-latency reaction times. Achieved autonomous operation with systemd service management. Comprehensive test coverage ensures reliability.