Manual for ETH Bot

Introduction

The ETH Bot is designed to automate the trading of Ethereum (ETH) using the Uniswap decentralized exchange. This bot employs various technical indicators to inform trading decisions, ensuring a strategic approach to buying and selling ETH. It integrates with Telegram for real-time notifications and commands and includes features such as stop-loss mechanisms, email reporting, and error handling.

Trading Strategies

The ETH Bot uses the following trading strategies:

VWAP (Volume Weighted Average Price): VWAP is a trading benchmark calculated by taking the average price of the asset over a specific period, weighted by volume. The bot buys ETH when the current price is higher than the VWAP, indicating a bullish trend, and sells when the current price is lower than the VWAP, indicating a bearish trend.

Stop-Loss Mechanism: A stop-loss is a predetermined price at which the bot will automatically sell ETH to prevent further losses. The bot continuously monitors the price and, if it drops below 97.5% of the opening price for the day, it triggers a sell order.

Features

Automated Trading: The bot automatically executes buy and sell orders based on the VWAP indicator and stop-loss mechanism. This reduces the need for manual intervention and allows for 24/7 trading.

Telegram Integration: The bot is integrated with Telegram to provide real-time notifications and allow users to send commands directly to the bot. This feature enhances user control and monitoring.

Email Reporting: Weekly reports are generated and sent via email, summarizing the number of transactions and the gains or losses incurred over the past week. This feature helps users keep track of the bot's performance.

Error Handling: The bot includes robust error handling mechanisms to ensure smooth operation. If the bot encounters an issue, it logs the error and notifies the user through Telegram.

Telegram Bot Commands

The Telegram bot supports several commands to interact with the ETH Bot:

/start: Initializes the bot and confirms it is online. This command provides an overview of all available commands.

/buy: Executes a buy order for ETH. The bot checks if there is enough ETH in the wallet and proceeds with the purchase if the criteria are met.

/sell: Executes a sell order for ETH. The bot sells ETH based on the VWAP indicator and stop-loss criteria.

/status: Provides the current status of the bot, including the ETH balance and potential gain or loss if sold at that moment.

/balance: Shows the current ETH balance in the wallet and the potential gain or loss.

/market: Provides the 1-week moving average of the ETH price, giving an overview of the market trend.

/hello: Sends a welcoming message. The bot randomly selects from a set of predefined greetings.

Detailed Explanation of Key Features

Automated Buy and Sell Orders:

The bot continuously monitors the price of ETH using the Kraken API and CoinGecko API. It fetches historical price data and calculates technical indicators such as VWAP, RSI (Relative Strength Index), MACD (Moving Average Convergence Divergence), and Bollinger Bands. Based on these indicators, the bot decides when to execute buy and sell orders. For instance, it buys ETH when the current price is above the VWAP and sells when it falls below the VWAP. Stop-Loss Mechanism:

The bot sets an opening price at the start of the day and monitors the price continuously. If the price drops below 97.5% of the opening price, the bot automatically triggers a sell order to prevent further losses. This feature ensures that users do not incur significant losses during a sudden market downturn. Telegram Integration:

Users can interact with the bot through a Telegram chat. The bot listens for commands and responds accordingly. The bot sends notifications for significant events, such as the execution of buy or sell orders and when the stop-loss is triggered. It also informs the user when the bot is online or offline, ensuring constant communication and transparency. Email Reporting:

Every week, the bot calculates the number of transactions executed and the total gains or losses incurred. This information is compiled into a report and sent to the user via email. The report helps users evaluate the bot's performance and make informed decisions about future trading strategies. Error Handling:

The bot includes comprehensive error handling to manage various potential issues, such as network errors, API failures, and insufficient funds for transactions. It logs errors and notifies the user through Telegram, ensuring that issues are promptly addressed. Setting Up the Bot To set up the ETH Bot, follow these steps:

Web3 Connection: Ensure that the bot is connected to the Web3 provider. The bot uses the Alchemy API for this purpose. Make sure the Alchemy URL is correctly configured.

Telegram Bot: Create a Telegram bot using BotFather and obtain the bot token. Configure the bot token and chat ID in the script.

Kraken and CoinGecko APIs: Set up API keys for Kraken and CoinGecko to fetch price data and execute orders.

Trust Wallet: Ensure that the Trust Wallet address and private key are correctly configured for the bot to execute transactions.

Email Setup: Configure the email address and password for the bot to send weekly reports. Ensure that the recipient email is correctly specified.

Running the Bot: Deploy the bot on a server or a local machine with internet access. Ensure that the necessary dependencies are installed. The bot should be set to run continuously to monitor the market and execute trades as needed.

Summary

The ETH Bot is a powerful tool for automating Ethereum trading using a strategic approach based on technical indicators. With features like automated trading, stop-loss mechanisms, Telegram integration, and email reporting, it provides a comprehensive solution for managing ETH trades. The bot ensures constant communication with the user through Telegram notifications and weekly email reports, making it a reliable and efficient trading assistant.